Carriers struggle to repatriate dollars, $290 million stuck in Pakistan — global airline body

A British Airways aircraft lands on a runway at the Islamabad International Airport on the outskirts of Islamabad on June 3, 2019. (AFP/File)
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Updated 16 March 2023
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Carriers struggle to repatriate dollars, $290 million stuck in Pakistan — global airline body

  • Airlines scale back flights or exit as country struggles with scant foreign currency reserves
  • Foreign reserves have dwindled to about $4 billion, only enough to cover month of imports

ISLAMABAD: A global airline industry body has warned that Pakistan has become “very challenging” to serve with flights as carriers struggle to repatriate dollars, with $290 million in funds stuck in the South Asian nation as of January, the Financial Times reported.

Pakistan is facing a balance of payments crisis, with its central bank foreign exchange reserves dropping to levels barely able to cover four weeks of imports. Companies are contending with delays in importing or converting currency, and analysts have warned the country is at risk of default.

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.

The International Air Transport Association said $290 million in funds were stuck in Pakistan as of January, the most recent data available, up nearly a third since December. Pakistan currently holds the second-largest amount of foreign currency from airlines globally, after Nigeria.

“Airlines are facing long delays before they are able to repatriate their funds,” Philip Goh, the IATA’s Asia-Pacific head, told the Financial Times. “Some airlines still have funds stuck in Pakistan from sales in 2022.”

Virgin Atlantic announced last month it was pulling out of Pakistan, just over two years since it launched services. The carrier had encountered problems repatriating funds, but the decision to suspend flights was based on the economics of the route, according to a person familiar with the decision.

Goh said: “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.”

Airlines are also struggling to repatriate funds from Sri Lanka and Bangladesh.

A Pakistan senate committee this month asked the aviation ministry to urge airlines to resume operations, according to local media.

But foreign airlines have been slow to return to Pakistan, with fewer total flights scheduled for March 2023 than the same month in 2019, before the pandemic, according to aviation analytics company Cirium. Emirates flights were down 24 percent, while those of Saudi state carrier Saudia declined 17 percent.


Pakistan says it seized 32 square kilometers inside Afghanistan as border clashes escalate

Updated 28 February 2026
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Pakistan says it seized 32 square kilometers inside Afghanistan as border clashes escalate

  • Security official describes ‘limited tactical action’ in Gudwana after Afghan assaults
  • Islamabad accuses Kabul of sheltering militants as UN, China and Russia urge restraint

ISLAMABAD: Pakistan has seized a 32-square-kilometer area inside Afghanistan following overnight fighting, a security official said on Saturday, as cross-border clashes between the two countries escalated sharply.

A Pakistani security official, speaking on condition of anonymity, said troops carried out a “limited tactical action” in the Gudwana area opposite the Zhob sector along the frontier, capturing Afghan territory after responding to attacks on Pakistani positions.

“On the night of Feb. 26/27, posts opposite the Zhob sector launched anticipated physical attacks on multiple Pakistani positions,” the official said, referring to fighters linked to Afghanistan’s Taliban authorities, whom Islamabad identifies as Tehreek-e-Taliban Afghanistan (TTA).

“In response to aggressive unprovoked fire and physical attacks, Pakistan security forces launched a limited tactical action on the night of Feb. 27/28 in the general area of Gudwana with a view to capture TTA Tahir Post,” he continued, adding that 32 square kilometers of Afghan territory were seized.

The official said special combat teams crossed the border after preparatory bombardment, supported by intelligence, surveillance and reconnaissance assets providing “real-time battlefield awareness.”

He said 24 Afghan Taliban fighters were killed and 37 wounded, with no Pakistani casualties reported.

The claims could not be independently verified, and there was no immediate confirmation from Taliban authorities in Kabul of any territorial loss in the Gudwana area.

The latest clashes erupted after Pakistani airstrikes targeted what Islamabad described as militant hideouts inside Afghanistan over the weekend, triggering retaliatory fire along the frontier and sharply escalating long-running tensions. Islamabad accuses Kabul of sheltering Pakistani Taliban militants responsible for attacks inside Pakistan, an allegation that Afghanistan denies.

Pakistan’s Information Minister Attaullah Tarar said on Saturday evening that 352 Afghan Taliban fighters had been killed and more than 535 wounded since the latest phase of hostilities began.

Tarar said Pakistani strikes had destroyed 130 check posts, 171 tanks and armored vehicles and targeted 41 locations across Afghanistan by air. Those figures could not be independently verified.

The United Nations, as well as China and Russia, have called for restraint.

The United States said Pakistan has the right to defend itself against cross-border militancy.