Originally known as Lahore International Airport, it was renamed after the visionary poet and philosopher Dr. Allama Iqbal, one of the pioneers that led to the creation of Pakistan.

In March 2003, a new terminal was inaugurated by President General Pervez Musharraf, originally commissioned by then ex-Prime Minister Nawaz Sharif.

[4][5] In 2008, the national flag carrier of the UAE, Etihad Airways, opened a dedicated aircraft line maintenance facility at the airport.

The facility is used for day-to-day technical line maintenance on Etihad aircraft, including hydraulic structural and instrument checks.

[6] In October 2020, British Airways has resumed its direct flight operations to and from Lahore after 44 years.

The new design of the Lahore Airport Expansion Project has inspiration from the national flower of Pakistan, Jasmine or locally known as "Chambeli".

The first phase that included the construction of the triple storey parking, in place of the front square lawn, has been complete and is now fully operational.

The design of the airport was developed by GilBartolomé Architects[9] from Spain, following a contract awarded to international Spanish Firm, TYSPA International,[10] which firm also worked on expanding the Madrid and São Paulo Airports.

[12] The following table provides details of the major traffic flows out of Lahore in terms of passenger numbers, aircraft movements, cargo and mail.