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Sunday, February 1, 2026

Pakistan’s Aviation Industry Key to Economic Growth and National Development

By Ahmed Anjum

The Pakistan aviation industry is in severe loss but holds immense potential to help the country recover from its ongoing financial losses. If the sector is provided with the innovation and development it truly deserves, it can attract greater domestic and foreign investment, create employment opportunities for the youth, and contribute significantly to overall economic growth.

Currently, a large number of Pakistani travelers prefer international airlines such as Qatar Airways, Emirates, and Singapore Airlines, resulting in substantial revenue flowing out of the country. The money spent by Pakistani local’s benefits foreign aviation businesses rather than strengthening the national economy. If Pakistan’s aviation industry embraces innovation, improves service quality, safety standards, and operational efficiency, many passengers would choose national carriers instead. This shift would retain revenue within the country, boost investor confidence, reduce foreign exchange outflow, and support long-term economic stability y while enhancing Pakistan’s global aviation image.

Pakistan’s aviation industry is facing several challenges, including high operational costs, weak governance, security and lack of skilled labor. Noted that although Pakistan has the capability to develop fighter jets but the lack of industry-wide modernization has made this goal remain out of reach for now. Many Traveler’s often encounter overcrowded terminals, limited amenities, and inefficient service, causing many passengers hesitate before choosing Pakistani airlines. Without meaningful investment in runways, new aircraft fleets, and modern cargo facilities, Pakistan is steadily losing its competitive edge in the South Asian aviation market. The aviation sector is a highly demanding industry that requires strong financial stability, strategic vision and professional management. However, due to the lack of modernization and professional management, have pushed national carriers like PIA towards privatization. Chronic issues — including frequent flight delays, heavy debt, corruption concerns, outdated aircraft fleets, and an unmotivated or inadequately trained workforce — resulted in a surge of passenger complaints. As a result PIA brand image has suffered severe damage leading to a substantial customer trust, market share and years of sustained financial loss. Eventually leading the airline into sustained financial losses. These weaknesses impacted not only PIA but extended to private carriers like serene airlines which experienced a big setback although it had new airplanes, management but it ended up declining due to various reasons. Serene Air declined mainly because its entire fleet became unserviceable, which led the Pakistan Civil Aviation Authority to suspend its license and stop all flights. The airline was already struggling financially, facing heavy losses that made it hard to continue operations. Frequent delays, poor service, and reliability issues further pushed passengers away. With rising competition and overall challenges in Pakistan’s aviation sector, Serene Air quickly lost its market share and was unable to recover.

During an event at the Competition Commission of Pakistan, Air Marshal (Retd) Javaid Ahmed shared recommendations to address the key challenges facing the aviation sector. To enhance Pakistan’s aviation industry, several steps can be taken: promoting professional standards to ensure safety and quality; strengthening regulatory governance to improve compliance and efficiency; better financial management to make aviation companies more transparent and stable; and opening more international routes to improve connectivity. Providing education, technical training, and R&D will create skilled workers, while using sustainable infrastructure and fuel will help protect the environment. Adopting digital technology and improving cybersecurity will make operations more efficient. Together, these measures can make Pakistan’s aviation sector safer, more efficient, and globally competitive.

Tourism can significantly enhance the aviation industry, if tourism increases in Pakistan, it can make a significant contribution to the country’s GDP, as more content creators and international travelers would promote Pakistan and its airlines, encouraging even more visitors. Modernizing the aviation industry would also create new career opportunities for the youth, helping develop a skilled workforce to support long-term growth. Experts believe that with urgent modernization and investment, Pakistan’s aviation sector can unlock its full potential in tourism, cargo transport, technology, skilled employment, and national security. This progress would strengthen Pakistan’s global position and allow it to compete more effectively with major aviation hubs such as the UAE, Singapore, and United Kingdom.

A recent study highlights that Pakistan’s aviation sector is making significant contributions to the national economy. In 2023, the industry contributed $5.6 billion — or 1.7% of GDP — supported 684,000 jobs, and served 22 million passengers.

Aviation revenue is projected to grow from $6.04 billion in 2025 to $8.17 billion by 2030, with passenger numbers expected to rise to 48.5 million. The sector plays a vital role in enhancing trade connectivity, promoting tourism, and strengthening Pakistan’s overall economic competitiveness

Pakistan’s aviation sector needs expansion by supporting existing carriers and allowing new entrants, while PIA must renew its aging fleet to reduce costs and attract premium passengers. Policies should encourage domestic and foreign investment, including easing ownership restrictions. International routes should be promoted with daily services on key destinations, and code-share or cooperative agreements should be prioritized to increase connectivity and competitiveness.

Ahmed Anjum – A-levels graduate and budding writer, exploring Pakistan’s aviation industry and beyond.

 

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