KARACHI: The European Union has maintained its ban on the Pakistan International Airlines (PIA) from operating flights to Europe, the European Commission said in a document seen by Arab News, citing “no grounds” to amend a list of countries barred from operating flights to the bloc.
PIA flights to Europe and the UK have been suspended since 2020 after the European Union Aviation Safety Agency (EASA) revoked the national flag carrier’s authorization to fly to the bloc following a pilot license scandal that rocked the country.
The issue, which followed a plane crash in May 2020 that killed nearly a hundred people, had resulted in the grounding of 262 of Pakistan’s 860 pilots, including 141 of PIA’s 434.
“The Commission considers that at this time there are no grounds for amending the list of air carriers, which are subject to an operating ban within the Union with respect to air carriers certified in Pakistan,” read the document released by the European Commission last week.
The document said the status of Pakistani air carriers will remain unchanged, in contrast with PIA CEO Muhammad Amir Hayat’s statement last month in which he expressed confidence that the PIA would resume flights to Europe, including two weekly flights to Paris, in June or July.
EASA and the Pakistan Civil Aviation Authority (PCAA) did not respond to Arab News’ requests for comment.
The document, which pointed to a “noticeable lack of depth of scrutiny” observed by EU experts, did not specify when EASA would conduct its next assessment or if there would be any further on-ground evaluations in Pakistan.
The commission said that EU experts conducted an on-site assessment in Pakistan on November 27-30, 2023.
“It was found that PCAA has an established policy to adhere to international safety standards, and is staffed by technically skilled and professional persons,” the document stated. “Nevertheless, common shortcomings were observed throughout the organization, such as underscoring of non-conformities, and the lack of internal verifications.”
It said Pakistan’s Flight Standards Directorate was “severely understaffed” in terms of sufficiently qualified personnel to perform all certification and safety oversight tasks.
“This situation is aggravated by the assignment of tasks that do not necessarily fall within the Flight Standards remit,” it added.
On the basis of the on-site assessment, the commission said it invited the PCAA to a hearing before the EU Air Safety Committee on May 14.
“At the hearing, PCAA, on the basis of a Corrective Action Plan (‘CAP’) submitted on 6 May 2024, addressed each observation described in the EU visit report, noting the root cause analysis underpinning all corrective measures taken or planned in the short, medium and long term,” it read.
The PCAA indicated the efforts undertaken to rectify the quality management shortcomings identified during the visit, according to the document.
“The Commission also highlighted the need for the government’s continued support, as well as the importance of ensuring leadership stability within the authority as a cornerstone for a well-functioning PCAA,” it stated, adding that EU member states should continue to verify effective compliance of air carriers certified in Pakistan with relevant international safety standards by prioritizing ramp inspections of those carriers.
Pakistan is set to privatize the national airline, which has been facing a financial crisis for the last several years, by June and July as part of the requirements set by the International Monetary Fund (IMF).
On Monday, Privatization Minister Abdul Aleem Khan said Pakistan had selected six companies qualified to bid to buy the PIA. The companies included Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol (Pvt) Consortiums, and YB Holdings Consortiums.
‘No grounds’: EU says status of PIA flight ban unchanged
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‘No grounds’: EU says status of PIA flight ban unchanged
- The ban was instituted after a pilot license scandal following a 2020 PIA plane crash that killed nearly 100 people
- Development comes weeks after PIA CEO said the airline would resume its flights to Europe in June or July this year
WWF alarmed after blue whale found dead in southwestern Pakistan bay
- Whale likely died a few days earlier after getting entangled in gillnets, says WWF
- Blue whale is the largest animal on the planet, weighing as much as 200 tons
KARACHI: The World Wide Fund For Nature-Pakistan has expressed alarm over the mortality of the blue whale in the country, saying that one was found dead near a remote bay area between Pakistan and Iran on Monday.
Whales are at the top of the food chain and have an important role in the overall health of the marine environment. This animal is listed as an endangered species on the IUCN Red List of Species, and there are around 10,000 to 25,000 specimens worldwide. Blue whale is the largest animal on the planet weighing as much as 200 tons. Its stomach can hold one ton of krill, and it needs to eat around four tons of krill each day.
In a press release, WWF-Pakistan said a 35-foot-long blue whale was found dead in the remote Gwater Bay area between Pakistan and Iran by a local fisherman on Monday. The international nature conservation organization said it is likely that the whale may have died a few days back in the open seawater and while the cause of death is not known yet, it seemed it might have died after getting entangled in gillnets used for catching fish.
“Muhammad Moazzam Khan, Technical Adviser, WWF-Pakistan, expressed concerns over the mortality of the blue whale and termed it sad news for the conservation community around the world,” the press release said.
Khan said all cetaceans, including whales and dolphins, are protected under the wildlife and fisheries legislations of Pakistan’s Sindh and Balochistan provinces.
“He also stressed to enact federal legislation for the protection of cetaceans, including whales, in the Exclusive Economic Zone of Pakistan,” the statement added.
WWF-Pakistan noted that there are many records of blue whales being spotted in Pakistan. It said the last blue whale was spotted off Gaddani town in Pakistan’s southwestern Balochistan province on Apr. 8, 2024.
WWF-Pakistan has said in the past that major dangers to blue whales include entanglement in fishing nets, ship strikes, water pollution, and climate change.
Pakistani Olympic champion Arshad Nadeem named in Forbes 30 Under 30 list
- Nadeem bagged gold at the Paris Olympics 2024 with record-shattering 92.97 meter javelin throw
- In May, Nadeem won gold in Asian Athletics Championships in South Korea with 86.4 meter throw
ISLAMABAD: Pakistan’s Olympic gold medalist and star javelin thrower Arshad Nadeem has been featured in the Forbes 30 Under 30 list for South Asia in 2025, the international business magazine said in a report on Monday.
Forbes 30 Under 30 is an annual list published by Forbes since 2011 that recognizes outstanding individuals under the age of 30 across multiple industries.
Nadeem, 28, made headlines around the world when he threw the javelin over the 90-meter mark in August 2024 during the Paris Olympics. The record-shattering throw handed Pakistan its first Olympic medal since 1992. It was also the first-ever gold medal Pakistan had bagged in a track and field competition.
“Arshad Nadeem’s impressive javelin throws won Pakistan its first-ever Olympic gold for an individual sport in Paris 2024,” Forbes said in the report.
“Nadeem’s stunning show at the Paris Olympics though, set a new Olympic record for his 92.97m javelin throw.”
The magazine noted that Nadeem also won gold at the Islamic Solidarity Games in Turkiye and the Commonwealth Games in 2022, and secured a silver medal in the men’s javelin throw at the 2023 World Athletics Championships.
In May, Nadeem claimed gold with an 86.4-meter throw in the men’s javelin final at the Asian Athletics Championships in Gumi, South Korea.
He is the first Pakistani in over 50 years to win a gold medal at the Asian Athletics Championships. Pakistan’s Allah Daad had last topped the podium in javelin throw and Muhammad Younis won the 800-meter event in 1973.
He hails from the small town of Mian Channu and has since become a national hero, inspiring millions with his rise from modest beginnings to the top of the Olympic podium.
Pakistan repatriates 268 nationals from Iraq amid ongoing Iran-Israel conflict
- Pakistani nationals repatriated through two flights, from Basra to Karachi and Islamabad, says FO
- Thousands of Pakistani zaireen (pilgrims) travel annually to Iran and Iraq to visit the holy sites there
ISLAMABAD: Pakistan’s foreign office said it repatriated 268 nationals from Iraq on Monday, as the Iran-Israel military confrontation enters its fourth day with no signs of either side letting up amid fears of a wider war breaking out in the region.
Thousands of Pakistani zaireen (pilgrims) travel annually to Iran and Iraq to visit holy sites there. Many have been stranded since Friday when Israel launched a massive wave of attacks targeting Iranian nuclear and military facilities but also hitting residential areas, sparking retaliation and fears of a broader regional conflict.
Pakistan last week advised its nationals to avoid traveling to Iran and Iraq amid surging tensions. Pakistan said it facilitated the evacuation of 450 nationals from Iran on Sunday.
“The Ministry of Foreign Affairs, in close coordination with Iraqi Airways, successfully facilitated the repatriation of 268 Pakistani nationals earlier today through two special flights from Basra to Karachi and Islamabad,” the foreign office said.
“Both flights have safely reached Pakistan.”
The foreign ministry said it remains engaged with Iraqi Airways and other Iraqi authorities to ensure the safe and timely return of the remaining Pakistani pilgrims in the country.
It advised Pakistani pilgrims in Iraq to remain in contact with the Pakistan Embassy in Baghdad and respective airlines for timely updates regarding their travel arrangements.
“All zaireen are further advised to remain prepared for travel at short notice,” the ministry said. “The Ministry of Foreign Affairs continues to monitor the situation closely and remains fully committed to facilitating the safe and orderly return of all Pakistani zaireen.”
Pakistan has condemned the Israeli strikes, calling them an unjustified violation of Iranian sovereignty, and has urged the international community to help de-escalate tensions through dialogue.
Iran has said over 200 people have been killed in Israel’s onslaught since Friday, while Israel says Iranian strikes have killed at least 18 people.
Pakistan holds interest rate at 11% as Mideast conflict poses new economic challenges
- Central bank maintains cautious stance as heightened geopolitical tensions, volatile global oil prices add new inflation risks
- Leading Karachi-based business and trade body criticizes central bank’s decision, says will ‘dampen’ business sentiment
KARACHI: Pakistan’s central bank kept its key interest rate unchanged at 11% on Monday, maintaining a cautious stance, as financial analysts warn heightened Middle East tensions and volatile global oil prices add new risks to the country’s fragile external sector and inflation rate.
A Reuters poll released earlier on Monday had shown analysts revising their expectations for a rate cut in light of Israel’s military strikes on Iran that began on Friday and have since intensified, pushing up global commodity prices.
“The [Monetary Policy] Committee noted some potential risks to the external sector amidst the sustained widening in the trade deficit and weak financial inflows. Moreover, some of the proposed FY26 budgetary measures may further widen the trade deficit by increasing imports,” the central bank said, announcing its decision to leave the rate unchanged.
“In this regard, the Committee deemed today’s decision appropriate to sustain the macroeconomic and price stability.”
Monday’s decision comes days after Pakistan announced its Rs16.7 trillion ($62 billion) annual budget targeting 4.2% growth, up from a provisional estimate of 2.7% for the current year.
The MPC noted that despite the widening trade deficit, the current account remained broadly balanced in April, and foreign exchange reserves rose to $11.7 billion as of June 6 after the completion of the first review under the International Monetary Fund’s Extended Fund Facility. The country expects $14 billion foreign exchange reserves by the end June.
The bank paused its policy rate easing cycle in March, following cumulative cuts totaling 1,000 basis points from a record high of 22%, and resumed it with a 100-basis-point reduction in May.
Inflation in Pakistan has slowed markedly since peaking at around 40% in May 2023. However, last month it rose to 3.5% year-on-year, above the finance ministry’s projection of up to 2%, partly due to the fading of favorable base effects. The central bank projects average inflation between 5.5% and 7.5% for the fiscal year ending this month.
“Going forward, inflation is expected to trend up and stabilize in the target range,” the MPC said.
The escalating tensions in key oil-producing regions have triggered a sharp surge in global oil prices with brent, West Texas Intermediate (WTI) and Arab Light crude oils showing a 12% week-on-week increase and daily spikes exceeding 6%, Arif Habib Ltd, a Karachi-based research firm, said in its latest note.
‘WAIT-AND-SEE’ STANCE
Amreen Soorani, the head of research at Al Meezan Investment Management, said the SBP’s decision was primarily driven by emerging geopolitical risks that had affected international oil prices.
“Even with substantial improvements in Pakistan’s inflation and external account, the central bank seems to have taken a cautious “wait-and-see” stance,” she told Arab News.
The regional tensions, she said, were posing potential challenges to Pakistan’s balance of payment and inflation rate. Cash-strapped Pakistan spent $17 billion on oil imports last year.
Soorani said petroleum was a major driver of Pakistan’s trade deficit, accounting for approximately 30% of all imports and consuming around 55% of export proceeds.
“All else being equal, a $5 per barrel increase in average oil prices for the year would worsen our trade deficit by an estimated $900 million annually,” the analyst said.
Pakistan is closely watching the global oil market, where brent and WTI crude traded at around $73.5 and $70.5 a barrel on Monday and fell 1% after opening lower in the Western markets, Finance Adviser Khurram Schehzad said.
“Global calls for increasing supplies is (are) one of the reasons among potential resolve of the Israel-Iran conflict by the US,” Schehzad said.
Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., said the SBP’s current monetary stance was aligned with the IMF’s recommendation to Islamabad to maintain a sufficiently tight monetary policy to anchor inflation.
“Additionally, the committee may have preferred to wait for greater clarity on the budget measures and their potential impact on inflation dynamics,” he told Arab News.
STOCKS GAIN, RUPEE DECLINES
Pakistani stocks gained by 82 points to close at 122,225 points “despite geopolitical risk amid speculations over SBP policy announcement,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities Ltd, said.
The rupee declined for the fifth consecutive session and inched down 0.07% to Rs283.17 per dollar. Qazi Owais Ul Haq, a currency dealer at Arid Habib Ltd. said Pakistan’s currency was “feeling the heat” as regional tensions surge.
“They are trying to hold the rate but as a third-world country war affects us,” Haq told Arab News.
Pakistan’s top trade body, the Federation of Pakistan Chamber of Commerce & Industry (FPCCI) and the Karachi Chamber of Commerce and Industry, (KCCI) said the central bank’s decision to maintain the policy rate at 11% was disappointing
“The SBP has not only ignored market signals but has also dampened business sentiment at a time when the economy urgently requires a boost,” KCCI President Muhammad Jawed Bilwani in a statement.
Pakistan’s Punjab unveils $18.9 billion budget, increases development spending by 47%
- Punjab allocates $4.40 billion for development budget, $2.88 billion for education and $2.24 billion for health sectors
- Provincial government proposes increase in minimum wage from $131 to $142 per month
ISLAMABAD: Pakistan’s largest and richest Punjab province on Monday unveiled its Rs5.33 trillion [$18.9 billion] budget for the fiscal year 2025-26, increasing its development spending by 47% and refraining from imposing new taxes on the masses.
Punjab, home to more than half of Pakistan’s over 240 million people, plays a dominant role in the national economy. It contributes roughly 60% to Pakistan’s gross domestic product and receives the largest share of federal funds under the National Finance Commission (NFC) Award.
Last year, Punjab’s budget for FY2024–25 was about $19.6 billion, with a development outlay of $3 billion. Punjab’s budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) party of Prime Minister Shehbaz Sharif, which has faced tough economic and governance challenges since forming its government at the center last year.
“The total outlay for [Punjab’s] 2025-2026 budget is Rs5,335 billion [$19.2 billion],” Punjab Finance Minister Mujtaba Shuja-ur-Rehman said while presenting the budget in the provincial assembly.
Rehman said the provincial government was presenting a “record-breaking development budget” this time.
“For which the total amount recommended is Rs1,240 billion [$4.36 billion], which is more than 47% compared to the current financial year,” he added.
The minister said the FY26 budget did not contain any new taxes on the masses, adding that the government wanted to widen the tax net to increase revenue.
Punjab’s own-source revenue is projected at Rs828.1 billion ($2.94 billion), including Rs524.7 billion ($1.86 billion) in tax receipts and Rs303.4 billion ($1.08 billion) in non-tax receipts.
According to budget documents seen by Arab News, the Federal Board of Revenue (FBR) has set a national target of Rs14,131 billion ($50.11 billion), with Punjab’s share estimated at Rs4,062.2 billion ($14.4 billion).
Rehman said the province has proposed a significant increase in education and health budgets to benefit the people of Punjab.
HEALTH, EDUCATION BUDGETS
“The total allocation for the education sector is Rs811.8 billion ($2.88 billion), which is 21% higher than last year, where development allocation stands at Rs148.5 billion ($526 million), the highest in the province’s history and 127% higher than the previous year,” he said.
He said Punjab would launch new education projects while continuing existing ones, allocating Rs15 billion ($53 million) for scholarships for high-achieving students and continuing with its Rs5.9 billion ($21 million) Undergraduate Scholarship Programme.
“To address infrastructure needs, Rs40 billion ($142 million) is set aside for building classrooms, while a Rs35 billion ($124 million) Education Delivery Programme aims to enhance access and quality across Punjab,” Rehman said.
The minister said the provincial government has allocated Rs630.5 billion ($2.24 billion) for the health sector in this budget, which is 17% higher than last year.
“Of this, Rs181 billion ($641 million) is earmarked for development, reflecting a 41% increase over the previous year,” Rehman said.
The minister said Punjab had allocated Rs494 billion ($1.75 billion) for the social sector, which accounted for 40% of the development budget.
Rehman said provincial government employees’ salaries would be increased by 10%, while pensions have been raised by 5% and the proposed increase in the minimum wage is from Rs37,000 ($131) to Rs40,000 ($142) per month.
The minister said that the new budget has given special priority to Pakistan’s agriculture sector.
“In the next financial year, Rs123 billion ($436 million) are allocated for development in the agriculture, livestock, irrigation, and water sectors, while Rs56.2 billion ($199 million) is allocated for non-development expenses,” he said.
The provincial minister said to ensure a climate-resilient Punjab, a record Rs795 billion (approximately $2.82 billion) worth of projects were included in the budget this year, accounting for 64% of the overall development budget.
Pakistan’s top revenue-generating Sindh province last Friday unveiled its Rs3.45 trillion ($12.41 billion) new budget while the northwestern Khyber Pakhtunkhwa (KP) province announced a surplus budget of Rs2,119 billion ($7.63 billion) for the next year on the same day.
