Key Indicators:
Efficiency of air transport services, Available seat kilometres, Number of operating airlines, Airport connectivity
Note: This pillar measures the extent to which a country’s infrastructure offers sufficient air connectivity and access for travellers domestically and internationally
Air transport significantly benefits various industries, with tourism being a key example. It provides essential connectivity for bringing visitors to destinations, while tourism drives demand for transportation services, creating a mutually beneficial relationship between the two sectors.[115]
On August 10, 2023, Pakistan’s Federal Cabinet approved the National Aviation Policy (NAP) 2023, which aims to modernize the aviation sector by promoting public-private partnerships and introducing a low-tax regime to attract investment. The policy focuses on enhancing safety and security standards through the implementation of Safety Management Systems (SMS) aligned with International Civil Aviation Organization (ICAO) guidelines, as well as deploying advanced screening and surveillance measures. These reforms aim to revitalize Pakistan’s aviation infrastructure and service efficiency, which currently shows a mixed performance.[116]
On the T&T Development Index 2024, Pakistan is ranked 65 out of 119 countries in the Air Transport Infrastructure pillar, with a score of 3.31,[117] indicating a moderate performance. However, the Efficiency of air transport services experiences adecline in ranking to 73, despite a slight increase in score to 4.52.
This suggests ongoing challenges in optimizing service delivery, compounded by recent setbacks, such as the postponed inauguration of the $246 million New Gwadar International Airport (NGIA) due to security concerns following mass protests in Gwadar. The NGIA, a significant part of the $50 billion China-Pakistan Economic Corridor (CPEC), was set to open on August 14, Pakistan’s Independence Day. The delay impacts efforts to attract Chinese investment in the country’s struggling economy, with no new opening date announced.[118]
Moreover, while the NAP 2023 lays out a forward-looking vision for aviation reform, the financial instability of the national flag carrier, Pakistan International Airlines (PIA), underscores the sector’s challenges. The Ministry of Aviation reported to the National Assembly Standing Committee that PIA’s net loss stands at Rs103.9 billion, despite an operational profit of PKR 3.187 billion in 2023. PIA’s total liabilities have surged to Rs850.75 billion, with Rs628.5 billion transferred to PIA Holding Company for privatization. Key concerns such as fake pilot licenses, outdated airport equipment, and aviation security issues further highlight the obstacles to achieving the ambitious goals set out in NAP 2023.[119]
Together, these elements reflect both the potential and challenges facing Pakistan’s aviation sector. While policies like NAP 2023 seek to create a more secure, efficient, and investment-friendly environment, issues related to operational inefficiencies, security concerns, and financial burdens must be addressed to ensure sustainable growth and international competitiveness.
The indicators, Available seat kilometres per week, and Number of operating airlines are ranked 107 and 58 respectively. However, the lack of score and data owing to copyright agreement suggests a need for improved transparency and availability of data in this area. It also shows potential challenges or fluctuations in the airline industry.
Airport connectivity score demonstrates improvement, with Pakistan ranking 36 with a score of 4.55, suggesting advancements in airport infrastructure and connectivity.
The development of robust air transport infrastructure is pivotal for boosting a country’s tourism industry.
Improved connectivity through direct international flights enhances accessibility, making destinations more attractive to global travelers. For Pakistan, recent advancements in air travel exemplify this trend.
Pakistan International Airlines (PIA) has launched direct flights from Islamabad and Lahore to Istanbul, expanding travel options and enabling access to 28 destinations within the Turkish Airlines network (November 2022).[120] Ethiopian Airlines has introduced direct flights to Karachi, starting May 1, 2023,[121] while Kazakhstan and Azerbaijan have also initiated services to Pakistan, with Kazakhstan’s flights to Lahore[122] and Azerbaijan’s flights to Islamabad, Lahore, and Karachi.[123] Pakistan International Airlines (PIA) has resumed direct flights from Dubai to Skardu,[124] a breathtakingly scenic valley in Pakistan often described as a “heaven on Earth” for travelers. The flights, first introduced on August 14, 2023, offer UAE residents a new and attractive tourist destination.[125]
The resumption of direct flights to Skardu enhances access for international tourists, supports the local tourism industry, and highlights the region’s natural beauty. Improved air connectivity helps attract global travelers, boost tourism revenues, and strengthen economic and cultural ties. These expansions in air transport infrastructure contribute to a more vibrant and globally connected tourism sector.
Recently the Prime Minister has called for enhanced facilities at Pakistan’s airports, including more counters for international flights and improved amenities at Skardu International Airport. He also stressed the need to complete the safety audit promptly and expand both Skardu and Gilgit airports to boost tourism.[126]
Overall, while Pakistan showcases progress in certain aspects of air transport infrastructure, there remain areas for improvement, including service efficiency, airline operations, and data transparency, to further enhance the country’s aviation sector and support economic growth and connectivity.