The town of Gwadar was purchased by Government of Pakistan from Sultan of Muscat in 1958. Air operations started in 1966. It is given international status when two weekly international flights from Karachi-Gwadar-Muscat were initiated. The terminal building was inaugurated in 1984 and the newly constructed Departure/VIP Lounges were inaugurated in 2008.
Pakistan anticipates Gwadar becoming a regional economic hub and, in preparation for this, has issued a directive for the development of New Gwadar International Airport. For this purpose, the CAA has earmarked 3000 acres (12 km²) of land 26 km northeast of the existing airport. The new airport is expected to cost $250 million. It will be given international status and operate under the open skies policy. In the meantime, there are plans at the existing airport to further facilitate the movement of wide-bodied aircraft.