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Junaid Khan

PIA targets Gulf dominance with direct flights to Europe

Published on: May 17, 2026 4:12 AM

Arif Habib, the Chairman of PIA Consortium told Daily Times, that the airlines of the Gulf countries are rich in resources with an ample number of airplanes, nevertheless, PIA can have a competitive advantage by commencing direct flights to London, instead of flying via Gulf countries. He indicated the commencement of operations sooner, as he noted that the passengers prefer direct flights as the travel duration from Pakistan to London slashes to 8 hours instead of 14 to 16 hours through the Gulf.

While highlighting the energy scenario, Arif Habib expressed that jet fuel prices have tripled in the wake of US-Iran War causing deficit to the airlines. Thus, to overcome the deficit, fares have had to be increased. However, the good news is that jet fuel prices have declined to some extent currently, and shall remain low for a period of time, hopefully, which shall result in fare reduction. Habib articulated, the aircraft market was tightened before the US-Iran War, as the delivery was projected by 2031 and 2032. Conversely, the post war situation of the market has been softened a bit, therefore, the PIA management is trying to lock new airplanes along with restoration of the older ones. By the end of CY26, the fleet shall be increased from 18 to 26 planes, as well as 20 new jets shall be added as per the market demand.

Arif Habib, while commenting on the upcoming FY27 Budget noted that hopefully, the government is going to provide relief in the budget, especially in personal and corporate taxes, as the inflation rate in Pakistan has increased considerably, and it’s need of the hour to counter it and create employment opportunities. He urged the government to cut the super tax and minimize the cumulative tax rate to attract local and foreign investment, while the promotion of construction sector can increase the size of economy along with employment rate, as a significant number of industries are linked to it, however, it all depends on a business-friendly budget. Habib added that marginally, the current account of FY26 is projected to remain in deficit, as a sufficient increase in exports has not been witnessed, besides, surging oil prices have escalated the import bill, as well as remittances in the month of June 2026 are also expected to decline, comparatively.

Arif Habib remarked that Pakistan’s role in the Iran-US War has remained commendable, which has not only elevated country’s prestige around the world, but also built a trust for secure investment. The Prime Minister, Field Marshall and the Deputy Prime Minister have done a marvelous job in mediating such an important international issue. He hoped, that the upcoming days are going to be in the favor of Pakistan, where the youth shall have better opportunities of education, entrepreneurship and employment.

Filed Under: Pakistan Tagged With: Europe, Gulf, PIA, targets

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