International airlines say limiting sales can be first step towards halting operations

LAHORE: The international airlines have limited their sales in Pakistan which could be an initial step towards complete stoppage of their operations, and hence the State Bank of Pakistan (SBP) must help and work closely with international airlines and the tourism sector to resolve their problems, said the representatives of Travel Agents Association and Freight Forwarders Association.

These views were expressed by Mian Amir, Yousaf Rizvi and Muhammad Ilyas from the Travel Agents Association and the representatives of the Freight Forwarders Association while addressing a press conference on Friday. Lahore Chambers of Commerce and Industry (LCCI) President Mian Nauman Kabir, Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq were also present on the occasion.

They further said that these airlines contribute not only in terms of taxes but also create job opportunities and generate revenue for local services, including fuel purchases, catering, hotel accommodation and rental services. “Thus, disruption in airline operation in the country will not only have a financial implication for the travel agents and tour operators, but it would also mean higher fares for travellers and job cuts in the travel industry,” they added.

The stakeholders observed that the travel industry has suffered tremendously in the last two years due to the Covid-19 pandemic and such eventuality would further put pressure on them. Hence, they urged the SBP to allow travel agents, tour operators and cargo agents to make foreign payments to international airlines for travel and tourism purposes, including religious travel.

They pointed out that the central bank was not allowing them to remit their sales revenue back to Turkey; hence, Turkish Airlines has limited their sales in Pakistan. They added that the airlines used to allow reverse selling and SOTO tickets, but due to the current situation, they have stopped it, leading to further loss to the industry and the government.

They also asked for special incentives and interest-free loans for travel agents and tour operators so that they could expand their businesses.

Meanwhile, LCCI President Mian Nauman Kabir said that the travel and tourism sector faced a severe crunch due to Covid-19 and various other challenges. “If the airlines reduce or stop their operations in Pakistan, it will not only hit various sectors of the economy hard but will also tarnish the soft image of Pakistan,” he warned, adding that “we would be cut off from the outside world if foreign airlines stop their operation in Pakistan.”

LCCI Senior Vice President Mian Rehman Aziz Chan said that it was the government’s responsibility to protect foreign investors and the business community and added that the business community was continuously facing multiple challenges, including the ban on luxury items and imports of machinery, and now the restriction on remittance of foreign airlines sales proceeds. He urged Prime Minister Shehbaz Sharif to take notice of this serious issue.

Copyright Business Recorder, 2022