ISLAMABAD: The Upper House of the Parliament has passed a government bill that enhances the compensation amount from five million to 20 million rupees in the event of death or injury of a passenger during air travel due to the fault of the carrier or the airline concerned— to bring the airline’s limit of liability in accordance with the Special Drawing Rights (CDR) created by the International Monetary Fund (IMF).
In this context, Parliamentary Affairs Minister Tariq Fazal Chaudhry presented the Carriage by Air (Amendment) Bill, 2026 in the Senate session on Tuesday that received the House’s nod by majority vote after it was opposed by the opposition lawmakers who demanded that the bill be referred to the relevant standing committee.
Finally, during voice vote, 25 votes went in the bill’s favour and nine against it.
Already passed by the National Assembly, the bill now requires the ceremonial assent from President Asif Ali Zardari to become an act of the Parliament.
The bill seeks to amend the Carriage by Air Act, 2012 to increase compensation amount from the existing Rs 5 million to Rs 20 million for the death or injury of a passenger during air travel due to the fault of the airline concerned.
The bill provides that the airline shall not be liable for damages— “to the extent that they exceed for each passenger Rs 20,000,000 if it is proved that— such damage was not due to the negligence or other wrongful act or omission of the carrier or its servants or agents.”
The Statement of Objects and Reasons of the bill reads that Pakistan is a party to Montreal Convention of 1999 (Convention), and that the Convention establishes an airlines liability in case of international flights for death or injury to a passenger or delay, damage or loss of baggage and cargo—it contains the limit of liability of the carrier in the SDR which is an international reserve asset created by the IMF to supplement official reserves of its member countries.
“There are changes in the amount of compensation in regular intervals. In fact, the next review of the limit of liability under the Convention is likely by December 2029. In view of this, it is proposed that the federal government may be empowered to incorporate requisite changes through notification in the official gazette based on implementation of the international commitments and inflationary trends in case of domestic air carriers,” reads the Statement of Objects and Reasons.
Another government bill-the National Fund for Culture Heritage (Amendment) Bill, 2026— moved by National Heritage and Culture Minister Aurangzeb Khichi, was referred to the relevant standing committee. The bill seeks to replace the words “federal government” with appropriate authority in the National Fund for Culture Heritage Act, 1994.
Apart from that, the parliamentary affairs minister, on behalf of the defence minister, laid before the Senate the Pakistan International Airlines Corporation (Conversion) (Repeal) Ordinance, 2026.
Earlier, in the Question Hour the parliamentary affairs minister informed the Senate that action had been taken against over 200 officials of the Federal Investigation Agency (FIA) for misuse of authority in immigration matters.
The Senate has been adjourned till Friday.
Copyright Business Recorder, 2026
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