Carriers could divert operations over failure to repatriate dollars from Pakistan — airlines body

In this file photo, taken on May 8, 2018, Pakistani airport workers load baggages into a plane at Islamabad International Airport. (Photo courtesy: AFP/File)
Short Url
Updated 03 April 2023
Follow

Carriers could divert operations over failure to repatriate dollars from Pakistan — airlines body

  • International Air Transport Association says $290 million stuck in Pakistan, some payments pending since last year
  • Pakistan is holding the second-largest amount of foreign currency from airlines globally, after Nigeria

KARACHI: The International Air Transport Association (IATA) on Monday called Pakistan a “very challenging environment” to operate in and said airlines could consider diverting their operations as they struggled to repatriate upwards of $290 million dollars from the crisis-hit South Asian nation.

Pakistan has restricted the outflow of USD amid depleting foreign exchange reserves with the State Bank, which currently stand at $4.2 billion, barely enough to cover the import bill for three weeks against the average $5 billion required per month.

Air carriers, which sell tickets in local currency but need to repatriate dollars to pay for expenses such as fuel, have been hit particularly hard in Pakistan, which is holding the second-largest amount of foreign currency from airlines globally, after Nigeria.

“In general, over time, if conditions persist that make the economics of operation to a country unsustainable, one would expect airlines to put their valued aircraft assets to better use elsewhere,” Albert Tjoeng, Head of Corporate Communications at IATA, said in an email to Arab News query on Monday.

Philip Goh, IATA's Regional Vice President for Asia Pacific, urged the government to increase the allocation of foreign exchange to airlines operating in Pakistan.

“A significant portion of an airline’s operational costs, such as maintenance, over-flights and fuel, are denominated in US dollars and settled through its head office,” Goh said.

“The currency repatriation challenges impact airlines’ timely access to its collection proceeds to meet payment obligations and increase the exposure to adverse foreign exchange movements … We are urging the government to increase the allocation of foreign exchange to airlines operating in Pakistan.”

“Pakistan is currently a very challenging environment for airlines to operate in,” Goh added. “The government has a Federal Excise Duty (FED) on air tickets for premium travelers, and is proposing to increase it which will make it more expensive to travel, and will dampen the demand for air travel.”

The IATA official said Pakistan’s foreign exchange controls were affecting the ability of foreign companies to repatriate their funds out of Pakistan and some airlines had funds stuck in Pakistan from sales even in 2022.

“Furthermore, the process for applying for currency repatriation is onerous. Airlines are required to provide an auditor’s certificate with each remittance showing the amount to be remitted,” Goh said. 

“This forces them to undergo a monthly audit process (instead of an annual audit). And it adds to the operating costs in Pakistan and prolongs the process."

Goh said with a population of over 220 million people, Pakistan was a huge aviation market but only 10.6 million people flew internationally in 2021-2022: “You can imagine the potential yet to be realized.”

In an IATA study in 2018, the number of air passengers in Pakistan had the potential to reach more than 35 million by 2038, contributing $9.3 billion in GDP and supporting almost 800,000 jobs, IATA’s regional vice president said.

However, both IATA officials said the decision to suspend operations was a commercial one, which would be made by each individual airline based on their circumstances.

Pakistan has been in economic turmoil for months with an acute balance of payments crisis while talks with the IMF to secure $1.1 billion funding as part of $6.5 billion bailout agreed in 2019 have not yet yielded fruit.


Pakistan PM to inaugurates faceless customs assessment system today during Karachi visit

Updated 11 sec ago
Follow

Pakistan PM to inaugurates faceless customs assessment system today during Karachi visit

  • Launched as a pilot project last month, the system aims to streamline customs clearance through automation
  • Shehbaz Sharif will also visit PSX to celebrate its achievement as the second-best performing global stock market

KARACHI: Prime Minister Shehbaz Sharif is scheduled to inaugurate the Federal Board of Revenue’s (FBR) new Faceless Customs Assessment System at the Karachi Port Trust during his daylong visit to the city, which began on Wednesday, to examine several key initiatives aimed at improving economic efficiency and health care services.
The Faceless Customs Assessment System, launched as a pilot project in December 2024, aims to streamline customs clearance through automation. By minimizing human interaction, the system seeks to enhance transparency, reduce clearance times and improve trade facilitation.
The initiative marks the first step in a broader government plan to scale up the system to upcountry ports and border stations in the coming months.
“The Prime Minister will visit the South Asia Pakistan Terminal at Karachi Port Trust, where he will inaugurate the FBR’s automated customs clearance system, the Faceless Customs Assessment System,” the PM Office said in a statement. “The Prime Minister had directed the installation of this system during his last visit to Karachi.”
Pakistan seeks to modernize its port facilities to transform itself into a transit trade hub. The country has also invited landlocked Central Asian nations to utilize its ports for access to global sea lanes, enhancing regional trade connectivity.
Sharif is also scheduled to attend a ceremony at the Pakistan Stock Exchange (PSX) to celebrate its achievement as the second-best performing stock market globally in 2024, with the benchmark KSE-100 Index rising 56 percent over the year.
His PSX visit comes at a time when the government aims to unlock both foreign and domestic investment to overcome a prolonged economic crisis. Pakistani officials have described the market’s strong performance as a reflection of growing investor confidence and the administration’s commitment to fiscal reforms and improved business facilitation.
Sharif will also attend the launch of the “Manual of Clinical Practice Guidelines” at Aga Khan University, calling it a milestone in Pakistan’s health care sector. The guidelines are expected to standardize medical practices and improve health care delivery nationwide.


Protesters in Pakistan’s north continue blockade of key highway to China over power outages

Updated 08 January 2025
Follow

Protesters in Pakistan’s north continue blockade of key highway to China over power outages

  • Residents of Gilgit-Baltistan started a sit-in on Jan.1, vowing to protest until they got reliable electricity
  • Despite the area’s significance, some residents say they only get electricity for 30 minutes in 24 hours

ISLAMABAD: Hundreds of protesters in Pakistan’s northern Hunza Valley blocked the Karakoram Highway (KKH) for the sixth consecutive day on Tuesday, demonstrating against severe power outages during the region’s freezing winter.
The protest, which began on January 1, involves local residents, political parties and civil society groups who vowed to continue their sit-in until their demands for reliable electricity were met.
Demonstrators on Tuesday voiced frustration over the Gilgit-Baltistan government’s failure to ensure even a few hours of power each day, saying over 80,000 people were struggling for basic needs.
The KKH, a vital trade and strategic route linking Pakistan with China, has been obstructed at Aliabad, the district headquarters of Hunza. The area plays a critical role in bilateral trade facilitated by the China-Pakistan Economic Corridor (CPEC), which has increased since an agreement to keep the Khunjerab Pass open year-round for economic exchanges.
“This is a nerve-breaking power outage in Hunza,” said Baba Jan, a protester, speaking at the sit-in. “We are getting power only 30-40 minutes in 24 hours.
“It is very cold here,” he added. “The temperature drops to minus 15 at night. Students don’t have Internet due to the power outage. There are issues in lighting, heating and cooking that people are facing here.”
Rehan Shah, another protester agreed, emphasizing the area’s important defense and strategic location.
“It’s the gate of CPEC and Pakistan-China connectivity,” he noted. “People here are hardly getting power for one hour and twenty minutes during the daytime. They’ve been out protesting on the streets for the last six days.”
Power cuts, known locally as load shedding, are a chronic issue in Pakistan, with many areas facing significant disruptions. The harsh winters in Gilgit-Baltistan exacerbate the problem, leaving residents without adequate heating or access to essential services.
Last week, Hamid Hussain, an engineer at the Gilgit-Baltistan Water and Power Department, acknowledged the issue but attributed it to technical limitations.
“The region heavily relies on hydropower, which often faces disruption in winter due to the freezing of rivers and lakes,” he told Arab News.
“There are 137 power stations in Gilgit-Baltistan,” he added. “The installed capacity of these power stations is 190 megawatts. However, power generation is 140 megawatts during the summer while 76 megawatts during the winter due to the low flow of water.”
Protesters have demanded thermal power generators to supplement energy needs during the winter, but Hussain said they were costly and were hard to implement due to financial constraints.


Diplomat pays tribute as 89 Pakistani devotees attend Sufi saint’s death anniversary in India

Updated 08 January 2025
Follow

Diplomat pays tribute as 89 Pakistani devotees attend Sufi saint’s death anniversary in India

  • Religious devotees are commemorating the 813th anniversary of Khwaja Moinuddin Chishti in Ajmer
  • Despite strained relations between the two nuclear-armed states, cultural and exchanges continue

ISLAMABAD: A group of 89 Pakistani devotees began attending the 813th annual Urs, or death anniversary commemoration, of the 12th-century Sufi saint Khwaja Moinuddin Chishti in India, with a Pakistani diplomat laying a traditional chaddar, or ceremonial cloth, at his shrine on Tuesday.

Born in 1141 in Sistan, modern-day Iran, Chishti arrived in India in the late 12th century and gained a following for his teachings of compassion and service to humanity, which resonated deeply with the region’s marginalized communities. Known as Gharib Nawaz, or Benefactor of the Poor, he established the Chishti Order of Sufism in South Asia.

His legacy as a symbol of interfaith harmony endures through his shrine in Ajmer, Rajasthan, which draws millions of devotees annually, particularly during the commemoration of his death anniversary.

“To participate in the 813th annual Urs Mubarak of Hazrat Khwaja Syed Moinuddin Hasan Chishti (RA), a group of 89 Pakistani Zaireen [pilgrims] is in Ajmeer Sharif from 7-9 January 2025,” the Pakistan High Commission said on X, formerly Twitter.

“Pakistani Zaireen accompanied by Second Secretary, Pakistan High Commission, New Delhi, Mr. Tariq Masroof, placed the traditional Chaddar at the Shrine of Hazrat Khwaja Syed Moinuddin Hasan Chishti,” it added.

The event underscores how cultural and religious exchanges have persisted between India and Pakistan despite strained diplomatic relations since August 2019, when New Delhi revoked Kashmir’s special constitutional status. The disputed Himalayan region has long been a flashpoint between the two nuclear-armed neighbors, who have fought wars and numerous border skirmishes over it.

Religious tourism remains a crucial element of people-to-people exchanges under the 1974 Protocol on Visits to Religious Shrines, which permits citizens of both nations to visit sacred sites. These include Hindu and Sikh temples in Pakistan and Islamic shrines in India.

At the beginning of the year, the Pakistan High Commission announced it had issued 94 visas to Indian nationals to attend the birth anniversary of an 18th-century Hindu spiritual leader in Sindh province.
Pakistan has also promoted religious tourism by hosting Buddhist monks, as well as Hindu and Sikh pilgrims from India and other countries.


Pakistani authorities deny detaining 800 Afghans, say only repatriating illegal immigrants

Updated 08 January 2025
Follow

Pakistani authorities deny detaining 800 Afghans, say only repatriating illegal immigrants

  • Afghan embassy recently said Islamabad administration was making arrests, targeting registered refugees
  • Pakistani authorities announced in November Afghan nationals would require NOCs to stay in Islamabad

ISLAMABAD: The Islamabad Capital Territory (ICT) administration on Tuesday rejected claims by Afghanistan’s diplomatic mission it had detained approximately 800 Afghan citizens, asserting it was only repatriating illegal foreign nationals in accordance with the law.

Pakistan, which hosted over four million Afghan refugees after the Soviet invasion of Afghanistan in 1979, registered these individuals with the United Nations Refugee Agency (UNHCR). They were issued Proof of Registration (PoR) cards and Afghan Citizen Cards (ACC) to allow legal residence and access to services such as health care and banking.

Another wave of Afghan refugees arrived after the Taliban’s capture of Kabul in 2021 amid the withdrawal of US-led international forces. Confronted with economic challenges and a surge in militant violence perpetrated by groups reportedly operating from Afghan territory, Pakistan initiated a crackdown against “illegal immigrants,” mostly Afghans, citing security concerns.

Pakistani officials said in 2023 that some Afghan nationals had been involved in attacks, including suicide bombings, targeting civilians and security forces, a claimed denied by the administration in Kabul.

The Afghan embassy in Pakistan said on Monday authorities in Pakistan’s federal capital had detained about 800 Afghan nationals, including individuals registered with the UNHCR.

“It is clarified that only the illegal foreign nationals are being repatriated as per law of the land,” the ICT administration said in a statement.

“With regard to Afghan nationals, it is being clarified that those holding valid documentation— such as Proof of Registration (PoR) cards, Afghan Citizen Cards (ACC), visas, or those listed for third-country resettlement— are not being repatriated,” it added. “Islamabad Civil Administration remains committed to safeguarding the rights of all documented individuals.”

The statement further noted that search and combing operations were also conducted in compliance with the law, offering undocumented foreign nationals the chance to validate their status.

It also confirmed that in 2025, Islamabad authorities deported 183 illegal foreign nationals, while two were still in holding areas. Officials stressed that those deported lacked any legal documentation and reiterated that actions are taken strictly against undocumented individuals.

“The civil administration reaffirms its commitment to ensuring fair and humane treatment of all individuals while strictly adhering to legal requirements,” the ICT statement said, urging foreign nationals to carry valid documentation to avoid inconvenience.

Last year in November, Pakistani authorities announced that Afghan nationals would need no-objection certificates (NOCs) to stay in Islamabad. The decision followed the detention of several Afghan nationals who reportedly participated in a political rally by former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, which turned violent, resulting in casualties.

The Afghan embassy expressed concern over alleged “unwarranted arrests, home searches, and extortion targeting Afghan nationals,” highlighting the reported detentions, including 137 who, it said, were temporarily registered with the UNHCR and had applied for visa extensions.


Women, children among six killed in road crash in Pakistan’s Balochistan

Updated 08 January 2025
Follow

Women, children among six killed in road crash in Pakistan’s Balochistan

  • The crash occurred in the mountainous Zhob district after speeding car lost control
  • Fatal road accidents are common in Pakistan where traffic rules are rarely followed

QUETTA: At least six people, including women and children, were killed after a speeding car crashed into a trailer in Pakistan’s southwestern Balochistan province on Tuesday night, officials said.
The vehicle was en route to the provincial capital of Quetta from the Zhob district, according to Zhob Assistant Commissioner Naveed Ahmed.
The speeding car lost control on a mountainous curve on N-50 Quetta-Islamabad Highway and crashed into the trailer coming from the opposite direction in Badinzai area, some 20 kilometers from Zhob city.
“Six people, including two women and two children, were killed in the fatal accident and seven others injured,” AC Naveed Ahmed told Arab News, adding speeding vehicles often results in accidents at dangerous curves along the Quetta-Zhob highway.
Muhammad Shahjahan, in-charge of the Zhob Trauma Center where the bodies and injured were taken, told Arab News that four critically wounded persons had been shifted to Quetta.
“The bodies have been identified and handed over to the heirs, while three other injured are out of danger now,” he added.
Fatal road accidents are common in Pakistan where traffic rules are rarely followed and roads, particularly in rural and mountainous areas, are in poor condition. Such accidents are frequent in Balochistan where single-carriage roads connect various cities, and even some highways lack modern safety features.
On Dec. 30, at least 18 passengers were killed in two separate road accidents in Pakistan’s eastern Punjab and southern Sindh provinces, authorities said.