PakistanUpdate Cargo ‘brisk’ but PIA still seeks state aid


Troubled state carrier Pak- istan International Airlines (PIA) has asked its govern- ment to write off losses of US$1.7 billion to save it frombankruptcy. With a fleet that includes


some widebody B777 and B747 aircraft, the carrier remains the largest opera- tor on Pakistan’s interna- tional and domestic routes. But recently, the country’s defence minister Ahmad Mukhtar stated that more aircraft were needed to arrest the carrier’s problems. “Whenwe have the newaircraft, the deficit will come down as we will be able to increase the number of flights,” he argued. Moving cargo to over 40 destinations


fromits hub airports, a spokesman says PIA Cargo earns valuable revenue for its parent carrier and provides “a massive boost to Pakistan’s wide spectrumof exports”. He went on: “PIA is doing a brisk cargo


business. It hasmanaged to record growth in sales by better utilisation of space during the first three quarters of 2010. Exports


Avicon uses the options


Karachi-based aviation services provider Avicon is handling a vibrant air charter business into nearby Afghanistan – though much of it is from hubs in the Middle East and elsewhere rather than fromPakistan. With Pakistan being so close


to Afghanistan, “road can be the cheaper option and only 10-20 percent of cargo is carried by air” says Avicon senior manager Hussain Zahid. However, the air option can


carried by PIA Cargo are 24.5 percentmore than last year so, the incremental trend can be seen.” The spokesman concluded: “The main


trading partners for Pakistan are the UK, the UAE, Saudi Arabia and the US. These partners are contributing significantly to the PIA Cargo business, whereas Europe and the Far East are developing andwe are formulating a strategy to focus on these destinations.”  PIA inaugurated a weekly B777 service between Peshawar and London Heathrow via Karachi on 6 November.


President notes ‘great opportunities’


While addressing the recent Pak-China Economic Forum in the city of Guangzhou, Pakistan president Asif Ali Zardari urged Chinese builders and construc- tors to take advantage of the country’s new environment for investment. “Pakistan is at the crossroads


of huge markets in Asia, Cen- tral Asia and the Middle East,” he pointed out. His stancewas one of offering


a positive view of development prospects for the country – one thatwill certainly benefit the for- tunes of its air freight industry. Zadari went on to state: “The


Zadari: ”at the crossroads of huge markets”


mere location of our country, together with low-


cost labour and special incen- tives, offer great opportunities to entrepreneurs seeking to profit from penetration in these huge markets.” He urged Chinese business-


men and investors to take advan- tage of the country’s “geo-strate- gic location, trade and economic potential and thewarmwaters of Pakistan,which has all the ingre- dients needed to become a pro- gressive and developed country”. Zardari said that corporate


leaders in China could help Pakistan achieve its goal of enhanced economic develop- ment and prosperity by investing


in its infrastructural and development projects. EU offers relief on textile sanctions


The EU’s recent decision to lift duties on about 80 lines of Pakistani imports for the next three years has thrown a thin lifeline to the economically-troubled country, with the move likely to boost exports of products that at present earn up to 900million euros (US$1.25 billion) a year. Textiles and clothing productsmake upmore than 70 percent of Pakistan’s total


exports to the EU. The country sent goods worth $4.8 billion to the EU in the 12months through to June 2009, with $3 billion coming fromthe sale of textile products. The trade concessions that come into effect in January weremade in response to the


country’s desperate plight after flooding this summer devastated vast areas, affecting the lives ofmore than 14million people. The unilateral waiver of tariffs covers about 27 per- cent of the country’s exports to the EU.Most will be related to textile exports, while leather products such as footwear will also benefit.


be useful whenever the security situation becomes difficult on the ground, he noted. Avicon is also moving large


Wahabuddin expects growth in the coming months


volumes of worldwide exports from Pakistan, Zahid continued. With a number of inbound


freighters flying into Pakistan or nearby countries, there is a plen- tiful supply of available out- bound capacity. “Also, opportunities are good


because there are few regular scheduled cargo operators to Europe or the US from Pak- istan,” Zahid added. According to Avicon CEO


Syed Wahabuddin, textiles are Pakistan’s main export. This business is expected to grow in comingmonths,with theWorld Trade Organisation set to grant additional trade concessions as part of a package to help the country put itself back on


its financial feet following the devastating floods it suffered a couple of months ago.


29 November 2010


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