LAHORE: By opening the skies to private investment, enforcing safety and efficiency standards and rethinking the role of government in aviation, Pakistan can unlock the potential of the aviation sector.
In aviation, grounded planes don’t earn a penny and a grounded aviation sector doesn’t uplift a nation. Pakistan has already paid dearly for doing nothing: in lost GDP growth, fewer jobs, and drained public coffers, industry sources said, adding: “Continuing along this path will only deepen the crisis, while on the other hand, reform works, private investment delivers, and the economy soars when aviation is allowed to thrive.”
According to the analysts, Pakistan’s aviation sector has been stuck on the tarmac for years, with inefficiencies and inaction dragging down GDP, job creation, and trade growth. In a nation of over 240 million people, air travel remains the preserve of a small segment. Connectivity is among the lowest in the region, and the result is clear: Pakistan’s economy is paying the price in missed opportunities for growth, exports and jobs.
They said that air connectivity is not just about moving passengers; it is an economic multiplier. Aviation underpins business travel, tourism, and the fast movement of high-value goods. Yet Pakistan has held on to a “Do Nothing” approach, leaving flights fewer, costlier, and less reliable than regional peers. Business travel is limited, domestic tourism has never reached its potential, and exports are constrained by weak air links, they added.
Giving example of Sialkot, which is known globally for sports goods and surgical instruments, they said the local business community built Pakistan’s first private airport and helped launch Airline. Direct flights opened up new export opportunities and connected the city to global markets far more efficiently, they said. Globally, they said, aviation is a massive job creator. Airlines, airports, cargo handlers, and tourism all depend on air connectivity. In Pakistan, air transport already supports more than half a million jobs. With the right reforms, this number could grow significantly. Instead, growth is stalled, they opined.
The tourism sector is a particularly stark example, they said, adding: “Despite its rich culture, landscapes, and religious heritage, Pakistan attracts a fraction of the visitors it should. Poor connectivity, high fares, and frequent disruptions drive tourists elsewhere. For a country seeking foreign exchange and job creation, the opportunity cost is immense.”
Talking about private airlines like Airblue, SereneAir and Air Sial, they said these carriers have proven that competition can lower fares, improve service, and expand connectivity. Their growth has brought new aircraft, new routes and new jobs. Fly Jinnah, a joint venture with Air Arabia, is another example of private investment creating low-cost options that benefit both passengers and the economy, they said.
When private carriers expand, ticket prices stabilize and service improves. When competitors exit as Shaheen Air did in 2018; ticket prices spike and travellers suffer. The message is clear; private investment and competition are essential to build a healthy aviation sector, they said.
About the Pakistan International Airlines (PIA), they said, once a source of national pride has become a drain on public resources. Annual losses run into tens of billions of rupees. Liabilities have ballooned into the hundreds of billions. And despite consuming taxpayer-funded bailouts, PIA today carries only a tiny fraction of the country’s passengers. This imbalance is unsustainable, they opined. Other countries have faced this dilemma before. Those that acted decisively introducing competition, restructuring flag carriers, and modernizing regulation; saw their aviation sectors thrive. Those that delayed reforms ended up with ballooning debts, grounded airlines, and weakened competitiveness.
Pakistan cannot afford to continue paying the high price of inaction. The opportunity is right in front of us: private carriers are ready to invest, international partners are interested, and the demand for air travel in a country of this size is undeniable.
Copyright Business Recorder, 2025