Blocked funds in Pakistan, other countries jeopardizing airline connectivity, warns international body

A London-bound state-run Pakistan International Airlines (PIA) plane taxies before take-off from Karachi International Airport in Karachi on April 21, 2010. (AFP/File)
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Updated 05 June 2023
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Blocked funds in Pakistan, other countries jeopardizing airline connectivity, warns international body

  • The international airline industry’s blocked funds increased by 47 percent to $2.27 billion in April 2023
  • IATA has named Pakistan among the top five countries accounting for 68 percent of the blocked funds

ISLAMABAD: The global aviation industry has witnessed a rapid surge in the level of blocked funds in countries like Pakistan, warned the International Air Transport Association (IATA) on Sunday, adding the situation was beginning to jeopardize airline connectivity in the affected markets.

IATA represents the interests of airlines worldwide and serves as a platform for collaboration and coordination among them. It also enables international air carriers to address common challenges by providing them a unified voice when engaging with governments, regulatory bodies, and other stakeholders.

“The industry’s blocked funds have increased by 47 percent to $2.27 billion in April 2023 from $1.55 billion in April 2022,” stated IATA in a press release.

It named Pakistan among the top five countries accounting for 68 percent of the blocked funds, along with Nigeria, Bangladesh, Algeria, and Lebanon.

Earlier this year in April, IATA described the business environment in Pakistan as “very challenging,” stating that international airlines were struggling to repatriate upwards of $290 million from the South Asian state and could consider diverting their operations elsewhere.

According to its recent statement, the blocked amount in Pakistan is mentioned as $188.2 million.

“Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets,” said Willie Walsh, IATA’s Director General. “Governments need to work with the industry to resolve this situation so that airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”

IATA urged governments to abide by international agreements and treaty obligations to enable airlines to access these funds arising from the sale of tickets, cargo space, and other related activities.


No casualties as blast derails Jaffar Express train in Pakistan’s south

Updated 47 min 50 sec ago
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No casualties as blast derails Jaffar Express train in Pakistan’s south

  • Passengers were stranded and railway staffers were clearing the track after blast, official says
  • In March 2025, separatist militants hijacked the same train with hundreds of passengers aboard

QUETTA: A blast hit Jaffar Express and derailed four carriages of the passenger train in Pakistan’s southern Sindh province on Monday, officials said, with no casualties reported.

The blast occurred at the Abad railway station when the Peshawar-bound train was on its way to Sindh’s Sukkur city from Quetta, according to Pakistan Railways’ Quetta Division controller Muhammad Kashif.

No group immediately claimed responsibility for the bomb attack, but passenger trains have often been targeted by Baloch separatist outfits in the restive Balochistan province that borders Sindh.

“Four bogies of the train were derailed due to the intensity of the explosion,” Kashif told Arab News. “No casualty was reported in the latest attack on passenger train.”

The Jaffar Express stands derailed near Abad Railway Station in Jacobabad following a blast on January 26, 2026. (AN Photo/Saadullah Akhtar)

Another railway employee, who was aboard the train and requested anonymity, said the train was heading toward Sukkur from Jacobabad when they heard the powerful explosion, which derailed power van among four bogies.

“A small piece of the railway track has been destroyed,” he said, adding that passengers were now standing outside the train and railway staffers were busy clearing the track.

In March last year, fighters belonging to the Balochistan Liberation Army (BLA) separatist group had stormed Jaffar Express with hundreds of passengers on board and took them hostage. The military had rescued them after an hours-long operation that left 33 militants, 23 soldiers, three railway staff and five passengers dead.

The passenger train, which runs between Balochistan’s provincial capital of Quetta and Peshawar in the country’s northwest, had been targeted in at least four bomb attacks last year since the March hijacking, according to an Arab News tally.

The Jaffar Express stands derailed near Abad Railway Station in Jacobabad following a blast on January 26, 2026. (AN Photo/Saadullah Akhtar)

Pakistan Railways says it has beefed up security arrangements for passenger trains in the province and increased the number of paramilitary troops on Jaffar Express since the hijacking in March, but militants have continued to target them in the restive region.

Balochistan, Pakistan’s southwestern province that borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces and foreigners, and kidnap government officials.

The separatists accuse the central government of stealing the region’s resources to fund development elsewhere in the country. The Pakistani government denies the allegations and says it is working for the uplift of local communities in Balochistan.