ISLAMABAD: Pakistan has declined an Indian request to open its airspace until New Delhi takes actions to deescalate tensions between the warring neighbors, including withdrawing fighter planes in forward positions, Pakistani Aviation Secretary Shahrukh Nusrat told a parliamentary committee this week.
The comments follow months of tension between the two countries, which came close to war in February over the disputed region of Kashmir, which both sides have claimed since independence from Britain in 1947.
Following a suicide attack in Indian-controlled Kashmir that killed 40 members of an Indian paramilitary police force in February, Indian jets launched a raid inside Pakistan, with Pakistan conducting a retaliatory strike of its own. Jets from the two countries also fought a brief dogfight in the skies over Kashmir during which an Indian pilot was shot down and captured. Pakistan returned the pilot and there were no further strikes but tensions remained high.
Pakistan has since kept part of its airspace closed to international air traffic, disrupting flights to India and other parts of the region.
“The Indian government approached asking us to open the airspace,” Nusrart told the Senate Standing Committee on Aviation on Thursday. “We conveyed our concerns that first India must withdraw its fighter planes placed forward.”
Though official talks between Pakistan and India are mostly suspended, track II diplomacy has picked up to help relieve tensions. On Friday, Pakistani and Indian delegates, including journalists, academics, students and activists, met for a backchannel dialogue organized by the Regional Peace Institute in Islamabad to discuss ways to normalize ties.
“Our basic purpose is to find out a way to move forward and address the areas of concern in both the countries,” said journalist Taimur Shamil who attended the meetings. He said Pakistan and India could cooperate in the fields of education, culture, religious tourism, economy and trade: “Since Pakistan is working on a mega economic activity, there is a huge potential of investment [for India] in our country as well,” he said.
According to RPI director Raoof Hassan, the purpose of the initiative was to “encourage the youth of the two countries to take charge to move forward.”
The second round of the track-II dialogue will take place in New Delhi in September this year.
Pakistan declines India’s request to open airspace until New Delhi deescalates tensions
Pakistan declines India’s request to open airspace until New Delhi deescalates tensions
- Airspace was closed after both countries carried out aerial bombing missions on each other’s soil in February
- Foreign carriers using Indian airspace have been forced to take costly detours because they cannot fly over Pakistan
New PIA owner plans more GCC flights, lower airfares
- New management will focus on religious tourism to Makkah, Madinah and other sites to expand global reach
- Owner Arif Habib says airfares will be rationalized to make PIA flights affordable for low-income Pakistanis
KARACHI: Pakistan’s recently privatized national carrier, the Pakistan International Airlines (PIA), plans to increase its flights to the Gulf Cooperation Council (GCC) region as part of its post-privatization business strategy to achieve 7.5% annual revenue growth, its new owner said this week.
A Pakistani consortium, led by Arif Habib Group, clinched a 75% stake in PIA for Rs135 billion ($482 million) on Dec. 23 after a competitive bidding process, in a deal that valued the airline at Rs180 billion ($643 million).
The sale marked Pakistan’s most ambitious effort in decades to reform the debt-ridden airline that had accumulated over Rs784 billion ($2.8 billion) in losses. The government said it aimed to end decades of state-funded bailouts and support the airline’s revival.
In an exclusive interview with Arab News, Arif Habib, chairman of Arif Habib Group, shared that he aims to attract around 70 million Pakistanis, who travel annually via different airlines, by making airfares more affordable.
“That [GCC region] is our biggest market... We would definitely try to increase the frequency of flights, increase the number of planes there, and try to capture more market share in that area,” Habib told Arab News on Monday.
“So, there we see a lot of opportunity.”
The new management of PIA, which currently caters to 4 million passengers annually, aims to target religious tourism, which Habib called a “captive market” in Pakistan and the Middle East.
According to PIA spokesperson Abdullah Hafeez Khan, the airline runs around 20 flights daily to the Middle East.
Habib plans to invest around Rs112 billion ($400 million) in PIA to turn the airline around, implementing short- and long-term improvements ranging from upgrading seats to tripling the 19-aircraft fleet, and engaging a foreign airline as a technical partner through strategic divestment over the next seven to eight years.
The group also intends to reduce PIA fares to make air travel more affordable for passengers from Pakistan’s low-income groups.
“Yes, we have been advised that in order to increase our market share, we will have to rationalize the airfares,” Habib said. “That is in the plan, and we will unfold it as it comes.”
The new owners have engaged a global advisory firm, Seabury Aviation Partners, to identify viable markets for the newly privatized airline and expand its presence both locally and internationally.
Habib aims for up to 7.5% annual growth in PIA’s operational revenues to make it profitable and the new management is targeting European and North American markets, particularly routes to and from the United Kingdom, the United States and Canada, for this purpose.
“The UK is the most lucrative market where I think there is a lot of demand,” he said, adding they would also be seeking more flight destinations. “Even for USA there is demand there.”
Habib, however, said the airline would take time to deliver “reasonable” returns to its investors, including AKD Group Holdings, Fatima Fertilizer Company, City Schools, Lake City Holdings and Fauji Fertilizer Company, a publicly listed firm owned by Pakistan’s military.
“In initial period of one to two years, we may see some losses but into medium term, I think, that would be turned around,” he concluded.
PIA posted a pre-tax profit of Rs11.5 billion ($41 million) for the January–June 2025 period, its first such profit for this timeframe in nearly two decades, according to a Reuters report in September. The airline recorded losses during the same period in 2024.
Once considered one of Asia’s leading carriers, PIA struggled with chronic mismanagement, political interference, overstaffing, mounting debt, and operational issues that led to a 2020 ban on flights to the European Union, the UK, and the US following a pilot licensing scandal. The EU and UK have since lifted their bans, giving the airline renewed momentum, while the US ban remains in place.
On Tuesday, PIA announced that the airline will be expanding its UK operations and will operate four weekly flights from Islamabad to London starting Mar. 29.
“The flights are being resumed after a long gap of six years,” PIA spokesman Khan said in a statement. “PIA is already operating three weekly flights to Manchester.”
