Pakistani ‘air taxi’ service interests aviation firms in Saudi Arabia, UAE, official says

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Updated 12 June 2023
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Pakistani ‘air taxi’ service interests aviation firms in Saudi Arabia, UAE, official says

  • The company plans to launch beta version of its booking app next week which would be internationalized within eight months
  • Official says fares of the air taxi service would range between $100 and $400 an hour depending upon the type of the aircraft

KARACHI: A Karachi-based aviation company launching what it calls Pakistan’s first ever aerial ride-hailing service, or air taxi, has generated business interest from Saudi Arabia and United Arab Emirate-based firms, a company official said on Saturday, adding they are planning to launch a booking app next week.

The online service, to be launched by the Karachi-based Sky Wings Aviation in collaboration with Thailand-based Wind Speed International, is aimed at connecting multiple airports of the South Asian country and boosting business and tourism.

Sky Wings Aviation already operates chartered flights, ambulance services and pilot training programs under licenses from the Pakistan Civil Aviation Authority (CAA). The online service will be part of charter flight operations governed by country’s aviation rules, requiring the details of passengers on board, nationality, address and contact numbers, purpose of travel, and aircraft specification among other details.

Imran Aslam Khan, Sky Wings Aviation’s chief operating officer (COO), says the company has received response from the Middle Eastern companies and they are asking for business model details.

“We got a response from some companies in Dubai and some companies in Riyadh, Saudi Arabia, who are interested in knowing what is the business model,” Khan told Arab News as the company unveiled its Austrian-made aircraft with German Jet A1 Fuel Engine in Karachi. 

“Those companies are willing to work with us and they want us to visit them and they want us to give a sort of presentation that what kind of business model this is, basically, because it does not exist anywhere in the world.” 




An Austrian-made Diamond DA40 aircraft becomes part of Pakistan’s first-ever air taxi fleet of Sky Wings Aviation on June 10, 2023, in Karachi. (AN photo)

Khan said in the Middle East a lot of business jets were available and there were a lot of people who could afford them and many people could afford the same thing if it was offered at a low cost. 

“So it is a sort of low-cost model in which smaller aircraft are being used,” he said. “We have promised the people that we are going to share everything.” 

Apart from this, the company official said they had received representation of two global aviation companies in Pakistan, of which one was for Pakistan and the other for the whole of Asia, including India. 

“That is a big achievement for Pakistan and for us. Anything Indians would need to get they will get through us,” Khan told reporters in Karachi, but declined to name the aviation companies. 

About the launch of the booking app, Khan said the beta version of it would be launched on June 18 that would be “first of its kind ride-hailing app the world over,” while a full version of the app would be launched within the next three months in Pakistan and within eight months internationally. 

The service will allow people to reserve rides using a specifically designed web application similar to Uber and Careem ride-hailing apps, according to the COO. 

The company initially plans to launch the service from Karachi to other parts of the southern Sindh province, the neighboring Balochistan province and parts of Punjab. Officials say a fleet of around 11 small aircraft is ready for the operation. 

The fleet comprises Seneca and Cessna aircraft as well as the Austrian-made aircraft with German Jet A1 Fuel Engine, which has three passenger seats and can fly at a speed of about 300 kilometers per hour. 

Responding to a question about fares, Khan said they would vary depending upon the aircraft. 

“I am going to operate these aircraft from $100 one way to $350-400 an hour and it is like never heard of before,” he said. “Because it includes the cost of the aircraft, maintenance, pilots, insurance and everything and with such kind of a model, I am confident that this sort of aviation taxi is going to grow the world over.” 

Out of 29 airports in Pakistan, around eight are fully operational and there are a lot of people who want to travel to those particular places, according to Sky Wing officials. The air taxi service will not only provide connectivity, but also generate socio-economic activities and tourism. 


Fertilizer sector fuels Pakistan stock market rally as benchmark index hits record high

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Fertilizer sector fuels Pakistan stock market rally as benchmark index hits record high

  • Fauji and Engro fertilizer stocks contribute nearly 600 points to KSE-100 gain
  • Surging investor sentiment, dividend expectations, possible Moody’s upgrade drive momentum

ISLAMABAD: Pakistan’s main stock index surged to a new record on Thursday, closing above the 138,000 mark for the first time, driven by strong institutional inflows and a sharp rally in fertilizer and blue-chip stocks, according to analysts and market data.

The benchmark KSE-100 index closed at 138,665.49 points, gaining 2,285.53 points or 1.68 percent from the previous close of 136,379.96, a bullish move that traders said reflected investor optimism ahead of earnings season and growing expectations of a credit rating upgrade.

Fertilizer companies led the rally, with Fauji Fertilizer Company Limited (FFC) and Engro Fertilizers Limited (EFERT) together adding 563 points to the index. Other top contributors included United Bank Limited (UBL), Systems Limited (SYS), Engro Holdings (ENGROH), and Hub Power Company Limited (HUBC), which added another 763 points collectively, brokerage firm Topline Securities said in its daily report.

“This rally was driven by heavy institutional flows, with local investors stepping in to scoop up value,” Topline said. “With sentiment back in high gear, today’s bullish close sets an upbeat tone heading into the heart of earnings season.”

Investor activity remained high with 778 million shares traded, while the total value of trades stood at Rs39.95 billion ($140.2 million). Pakistan International Bulk Terminal (PIBTL) led volumes, with 82.6 million shares exchanged during the session.

Ahsan Mehanti, CEO of Arif Habib Commodities, said investor confidence was boosted by anticipated strong corporate earnings, attractive dividend expectations and government engagement with Moody’s over a potential rating upgrade.

“Government affirmation over talks with industrials on budgetary measures, and the finance minister’s presentation to Moody’s of compelling evidence for a ratings improvement played a catalytic role in today’s close,” Mehanti said.
 


Women in Pakistan earn 30 percent less than men, ILO finds in landmark wage gap study

Updated 4 min 36 sec ago
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Women in Pakistan earn 30 percent less than men, ILO finds in landmark wage gap study

  • Women make up just 13.5 percent of wage earners in Pakistan despite rising education levels
  • Pay gap widens in informal sectors, remains largely unexplained by skills or experience

ISLAMABAD: Women in wage employment in Pakistan earn nearly 30 percent less per month than men despite often having higher levels of education and working full time, according to a new report by the International Labour Organization (ILO), one of the most comprehensive studies of the country’s gender pay gap to date.

Published in July 2025, the ‘Gender Pay Gap in Pakistan: An Empirical Analysis’ found that on average, women earn 25 percent less per hour and 30 percent less per month than male counterparts, “even when they have similar qualifications and experience, and are employed in comparable roles.”

“The magnitude of the gender pay gap in Pakistan is among the highest when compared to other lower-middle-income countries,” the ILO said.

The study used data from Pakistan’s Labour Force Surveys from 2013 to 2021, examining hourly, monthly and annual earnings across public and private sectors, including both formal and informal employment. The authors concluded that the wage disparity is only partially explained by observable factors such as age, education, occupation and hours worked.

“The majority of the wage gap between men and women in Pakistan remains unexplained, suggesting that discrimination or other unmeasured factors may be at play,” the report said.

The wage gap is also compounded by extremely low female participation in the labor force. 

According to the report, women account for just 13.5 percent of wage employees, despite making up nearly half the working-age population.

As of 2021, the female employment rate stood at 23 percent, compared to 79 percent for men.

“The overall employment gap — defined as the difference in employment-to-population ratios between men and women — has hovered at 56 percentage points over the last decade,” the report found, adding that women face “multiple challenges when entering, staying in, and progressing in wage employment.”

In many cases, the ILO noted, women with higher levels of education still earned significantly less than men with similar or even lower qualifications, “indicating entrenched biases in hiring and promotion decisions.”

INFORMAL SECTOR

The study found that the gender pay gap is widest in the informal sector, where women earn over 40 percent less per hour than men. In the formal private sector, the gap is slightly narrower, and lowest in the public sector, where wage structures are regulated and pay scales standardized.

“The informal sector, where a significant proportion of women are employed, exhibits the highest gender pay gap, primarily due to the lack of oversight, low unionization, and absence of formal wage-setting mechanisms,” the report said.

The ILO also cited the impact of occupational segregation. Women are underrepresented in higher-paying roles and overrepresented in sectors such as domestic work, education, and agriculture, which are often undervalued.

To address these gaps, the report outlines a number of recommendations, including expanding formal employment opportunities for women, enforcing minimum wage laws and pay transparency measures and developing gender-responsive social protection systems. It also recommends strengthening labor inspection and legal enforcement, particularly in the informal sector, and investing in sex-disaggregated data collection to better monitor wage trends and disparities.

The ILO also urged Pakistan to ratify and implement international conventions on equal pay and non-discrimination, including ILO Convention No. 100 (Equal Remuneration) and No. 111 (Discrimination in Employment and Occupation).

The report underscores that eliminating gender-based wage disparities is not only a matter of justice, but also critical for boosting economic productivity and household welfare.

“Addressing the gender pay gap is essential to achieving inclusive economic growth and meeting Pakistan’s commitments under the Sustainable Development Goals,” the ILO concluded.


Pakistani province completes first forest carbon mapping, targets $4 billion in credit revenue

Updated 43 min 29 sec ago
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Pakistani province completes first forest carbon mapping, targets $4 billion in credit revenue

  • Khyber Pakhtunkhwa identifies 2.2 million hectares of forest land that can absorb 400 million tons of carbon
  • KP chief minister says provincial government expected to earn $100 million annually from selling carbon credits

PESHAWAR: Pakistan’s northwestern Khyber Pakhtunkhwa (KP) government on Thursday announced it had completed its first forest carbon credit mapping, saying that projects on over two million hectares of land can be used to generate $4 billion in revenue and create over 50,000 jobs. 

Carbon credits are permits that allow owners— governments or companies— to emit a certain amount of carbon dioxide or other greenhouse gases (GHGs). The United Nations allows polluting companies or countries to buy carbon credits to offset their emissions. These credits can be sold in international carbon markets. 

Forest carbon credit mapping refers to the process of using satellite images, drones, and data to measure the forest land of a particular area. This estimates how much carbon the trees in that given area are absorbing. This data is then used to identify areas where projects can be launched to earn carbon credits.

A ceremony was held at the Chief Minister’s House in Peshawar to mark the launch of KP’s first Forest Carbon Credit Mapping Report, the chief minister’s office said in a statement. The report was launched by Chief Minister Ali Amin Gandapur. 

“Through this mapping, done with the help of modern technology, ten potential projects covering 2.2 million hectares of forest land in the province have been identified,” the statement said.

“These projects can absorb more than 400 million tons of carbon,” the statement added.

The report further said these projects can earn a revenue of $4 billion and create over 50,000 green jobs. Meanwhile, Gandapur said the mapping will serve as a “comprehensive model” for the province’s environmental, economic, and social development.

“The forest area of Khyber Pakhtunkhwa makes up 46 percent of the country’s total forested area,” Gandapur was quoted as saying in the statement. “The forests of the province have the capacity to absorb 50 percent of the country’s carbon.”

The KP chief minister said the provincial government is expected to earn $100 million annually from carbon credits. He said the KP government is undertaking efforts to further increase the forest area of the province.

Pakistan is consistently ranked as one of the world’s worst-affected countries due to climate change. Monsoon rains in the country since June 26 alone have killed around 190 people and injured several others. 

Unusually heavy rains triggered flash floods in June 2022 that killed over 1,700 people and caused damages of over $33 billion, with large swathes of crops and critical infrastructure destroyed by raging currents.


Pakistan to tighten pilgrimage travel to Iraq, Iran and Syria after 40,000 go ‘missing’

Updated 17 July 2025
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Pakistan to tighten pilgrimage travel to Iraq, Iran and Syria after 40,000 go ‘missing’

  • Government scraps unregulated ‘Salar system’ after host nations raise concerns
  • Only licensed tour operators to lead pilgrim groups under new return-tracking policy

ISLAMABAD: Pakistan plans to overhaul its pilgrimage travel policy to Iraq, Iran and Syria after authorities confirmed that around 40,000 Pakistani pilgrims went missing or overstayed in the three countries over the past decade, raising serious diplomatic and security concerns, a senior immigration official said. 

Each year, thousands of Pakistani Shia pilgrims travel to regional religious shrines, but host governments have repeatedly flagged the issue of undocumented or unreturned visitors. The problem resurfaced this week after Religious Affairs Minister Sardar Muhammad Yousaf revealed that 40,000 Pakistani pilgrims had either overstayed or gone missing in these countries without any official record of their whereabouts.

In response, authorities have scrapped the long-standing “Salar system,” in which private group leaders managed travel logistics, and are introducing a new centralized, computerized structure to track and regulate pilgrim movement more effectively.

“Approximately 40,000 of the pilgrims who went on pilgrimage in Iraq, Iran, and Syria never returned during the last almost one decade,” Mustafa Jamal Kazi, Director General of Immigration and Passports, told Arab News.

He said most of the disappearances occurred in Iraq and that Pakistani authorities had formally requested details from the Iraqi government. 

Once confirmed, passports of the missing individuals will be digitally and physically blocked, and they will be placed on the border control list.

“Last year, 50 such individuals were deported from Iraq, and we have taken further action against them,” Kazi said.

He added that the lure of employment in Iraq’s booming construction sector, bonded labor involving women, and the exploitation of religious tourism for begging were among the most common motives for absconding.

To curb the trend, a new Ziyarat Management Policy has been finalized, after Interior Minister Mohsin Naqvi discussed the plan during a recent pilgrimage coordination meeting in Iran.

Under the new policy, pilgrims will only be allowed to travel in organized groups, and licensed tour operators will be held directly responsible for ensuring that all group members return to Pakistan before their visas expire.

Any operator found violating the policy or failing to ensure the return of all pilgrims will have their license canceled.

Only tour operators that meet new regulatory standards will be registered as Ziyarat Group Organizers (ZGOs), according to the religious affairs ministry, which said the new system would fully replace the traditional, unregulated Qafila Salar model.

“Due to the lack of proper data regarding the number of pilgrims, travel schedules, and their return after completing the pilgrimage, various concerns have been raised by host countries and relevant institutions,” the religious ministry said in a statement on Wednesday. 

The new registration process, approved by the federal cabinet, will enable more effective monitoring of pilgrimage traffic and prevent individuals from using religious travel as a cover for illegal migration or unauthorized cross-border movement.

The ministry said all pilgrimages would now be conducted under a structured system led by government-registered Ziyarat Group Organizers (ZGOs), which would also “help curb illegal stays in host countries or any attempts to cross into neighboring countries under the guise of religious pilgrimage.”


ADB flags telecom investment crisis as Pakistan loses $1 billion in FDI in a year

Updated 17 July 2025
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ADB flags telecom investment crisis as Pakistan loses $1 billion in FDI in a year

  • Foreign investment in telecom drops by nearly half within a year
  • ADB urges tax overhaul, spectrum reforms to restore investor confidence

ISLAMABAD: Pakistan lost nearly $1 billion in foreign direct investment (FDI) in the telecom sector in just one year, with inflows plunging from $1.67 billion in 2021–22 to $750 million in 2022–23, according to a new report by the Asian Development Bank (ADB).

The dramatic decline reflects growing unease among investors about Pakistan’s digital infrastructure landscape, which suffers from high taxation, poor spectrum allocation, limited fiber penetration and regulatory unpredictability. While demand for mobile Internet continues to grow, with over 138 million mobile broadband users as of late 2024, the enabling environment for investment has worsened, especially amid Pakistan’s macroeconomic volatility.

Fixed broadband penetration remains at just 1.3 percent, and only 14.8 percent of cell towers are connected to fiber, making it difficult to meet rising data demands or prepare for 5G deployment. The report notes that the telecom sector has contributed over PRs1.28 trillion to the national treasury in the past five years, yet sustained investment in digital infrastructure has failed to materialize.

The bank has warned that without urgent reforms, the sector may fail to deliver on its potential as a key enabler of digital transformation and economic growth.

“The telecom sector in Pakistan has experienced a decline in revenues and foreign investment, which reflects a very challenging business environment,” the ADB wrote in its Pakistan Digital Ecosystem Diagnostic Report, released in July 2025.

The report singles out Pakistan’s spectrum auction model as a major constraint. Starting prices are set in US dollars and often considered unaffordable by private operators, discouraging participation and delaying the deployment of next-generation networks.

“The spectrum auction starting prices and commercial conditions need to be reasonable and attractive for operators,” the ADB said. “This would facilitate the timely and cost-effective launch of 5G technology and enable new applications and innovations in the digital economy.”

Taxes imposed by both federal and provincial authorities are described as among the highest globally for the sector. Right-of-way (RoW) fees, charged annually in Pakistan, further burden service providers, unlike in countries like India where such fees are levied only once and at a nominal rate.

To reverse the downward trend, the ADB has recommended a long-term tax policy guarantee, reform of spectrum pricing mechanisms, and a unified national RoW regime. It also called for deeper engagement with provincial governments to generate “anchor demand” for fiber services through public institutions like schools and hospitals in tier 2 and tier 3 cities.

The report emphasizes that the telecom sector must be viewed not only as a commercial domain but as foundational infrastructure for Pakistan’s future. Without decisive action, it warned, digital inequality will widen and Pakistan’s competitiveness will suffer.

“Pakistan’s digital infrastructure is dragging down its overall digital readiness and economic performance,” the ADB concluded.