Dollar crisis: Air traffic in Pakistan is under threat

International Desk: Air traffic in South Asian country Pakistan is under threat due to dollar crisis. The country is not able to pay the debts of the international airlines due to lack of sufficient dollars. On Friday (March 17), the Financial Times reported in a report that the International Air Transport Association (IATA) recently said that it is becoming difficult for them to provide air services in Pakistan. Because 290 million dollars of different airlines of the world are stuck near Islamabad. This amount is paid in dollars. Pakistan's fast-dwindling foreign reserves now stand at $4.3 billion. Pakistan's various activities, including the import of goods, have come to a standstill due to reduced reserves. The Pakistan Civil Transport Authority said it is trying to pay the dues to the airlines on time and has contacted the relevant authorities to resolve the issue.

IATA represents more than 300 airlines worldwide (83 percent of the world's total air traffic). According to this organization, 290 million dollars of airlines have been stuck in Pakistan till January 2023. According to the global airline, in December 2022, Pakistan withheld $225 million due to the airlines. IATA's Asia Pacific head Philip Goh said, "Airlines are having to wait a long time to get what they are owed. Some airlines' sales for 2022 are also stuck. He said that if economic instability continues in Pakistan, airlines may decide to use their aircraft elsewhere. Last month, Virgin Atlantic announced that it would close its operations in Pakistan. However, the airline said this is part of its restructuring plan. However, according to experts, Virgin Atlantic Airlines has made such a decision because of the economic instability in Pakistan. The airline's analysis has shown that the number of flights scheduled to operate in Pakistan in March 2023 is much less than in March 2019.