Latest news with #Rs8.2
Express Tribune
2 days ago
- Business
- Express Tribune
Pak airspace ban costs Air India Rs8.2b
Pakistan Air Force J-10C fighter jets perform at a rehearsal ahead of Pakistan's national day parade in Islamabad on March 21, 2024. (Photo by Aamir QURESHI / AFP via Getty Images) AAMIR QURESHI As the airspace ban Pakistan slapped on Indian carriers drags on for forty days, the cost for Air India is turning from heavy to near-unsustainable, aviation sources said on Wednesday. The Indian national carrier has already taken a hit of over Rs8.2 billion since the closure began. According to well-placed aviation insiders, Air India is bleeding approximately Rs200 million each day due to longer alternate routes, increased fuel consumption and delays triggered by the airspace detour. In a sign of rising frustration, Air India's Chief Executive Officer Campbell Wilson has formally written to the Indian government, highlighting the scale of financial damage. In the letter, Wilson reportedly warned that continued restrictions could render airline operations unsustainable if not addressed soon. According to The Economic Times, an internal presentation showed that Air India had, late last year, set a target to become profitable by FY 27. However, the closure of Pakistani airspace for Indian carriers is likely to delay that. "It will still take a little bit more time to achieve what we want to achieve, but it was a five-year project in the beginning," Wilson said in the interview to the Economic Times, referring to the five-year transformation plan 'Vihaan' announced in September 2022. "The closure of Pakistani airspace, which started on April 24, has forced Air India's flights to North America to take detours and stop in Vienna or Copenhagen to refuel, leading to increased expenses," the report noted. "It's not insignificant, but as long as it covers the cost of operation, we will continue to operate," Wilson said. "We don't know the extent to which the bottom line is going to be affected. We will try to minimise the effect." The CEO's concerns are not limited to Air India alone. Other Indian carriers have also reportedly suffered billions of rupees in cumulative losses, though precise estimates remain undisclosed. "This isn't just turbulence, it's a full-blown storm for Indian aviation," a senior aviation official remarked, noting that the 40-day closure has upended flight logistics, increased operational costs, and complicated international schedules for Indian carriers. The airspace restrictions, which came into effect in the wake of heightened diplomatic tensions, have now completed 40 days, with no breakthrough in sight. For airlines forced to circumvent Pakistani airspace, the sky is not only the limit but also a costly detour. As the ban continues, industry experts warn that Indian carriers might soon be compelled to cut routes or hike fares, passing the burden onto passengers, unless diplomatic channels find a way to clear the air.
Express Tribune
2 days ago
- Business
- Express Tribune
Pakistan airspace ban costs Air India Rs8.2b in 40 days
Listen to article As the airspace ban Pakistan slapped on Indian carriers drags on for forty days, the cost for Air India is turning from heavy to near-unsustainable, aviation sources said on Wednesday. The Indian national carrier has already taken a hit of over Rs8.2 billion since the closure began. According to well-placed aviation insiders, Air India is bleeding approximately Rs200 million each day due to longer alternate routes, increased fuel consumption and delays triggered by the airspace detour. In a sign of rising frustration, Air India's Chief Executive Officer Campbell Wilson has formally written to the Indian government, highlighting the scale of financial damage. In the letter, Wilson reportedly warned that continued restrictions could render airline operations unsustainable if not addressed soon. According to The Economic Times, an internal presentation showed that Air India had, late last year, set a target to become profitable by FY 27. However, the closure of Pakistani airspace for Indian carriers is likely to delay that. 'It will still take a little bit more time to achieve what we want to achieve, but it was a five-year project in the beginning,' Wilson said in the interview to the Economic Times, referring to the five-year transformation plan 'Vihaan' announced in September 2022. 'The closure of Pakistani airspace, which started on April 24, has forced Air India's flights to North America to take detours and stop in Vienna or Copenhagen to refuel, leading to increased expenses,' the report noted. 'It's not insignificant, but…as long as it covers the cost of operation, we will continue to operate,' Wilson said. 'We don't know the extent to which the bottom line is going to be affected. We will try to minimise the effect.' The CEO's concerns are not limited to Air India alone. Other Indian carriers have also reportedly suffered billions of rupees in cumulative losses, though precise estimates remain undisclosed. 'This isn't just turbulence, it's a full-blown storm for Indian aviation,' a senior aviation official remarked, noting that the 40-day closure has upended flight logistics, increased operational costs, and complicated international schedules for Indian carriers. The airspace restrictions, which came into effect in the wake of heightened diplomatic tensions, have now completed 40 days, with no breakthrough in sight. For airlines forced to circumvent Pakistani airspace, the sky is not only the limit but also a costly detour. As the ban continues, industry experts warn that Indian carriers might soon be compelled to cut routes or hike fares, passing the burden onto passengers, unless diplomatic channels find a way to clear the air.
Express Tribune
17-04-2025
- Business
- Express Tribune
Ordinance empowers govt to increase PDL
A presidential ordinance issued late on Tuesday empowered the federal government to increase the Petroleum Development Levy (PDL) on the petroleum products at will and removed the maximum ceiling that had capped it to Rs70 per litre. The ordinance abolished the Fifth Schedule for the levy on petroleum products, which authorised the government to impose any levy at any rate. The ordinance came as the government increased the PDL on petroleum products, instead of reducing the oil prices following reduction in the global market. The government increased the levy on petrol by Rs8.2 per litre to Rs78.2 per litre. Similarly, the levy on diesel was increased by Rs7.1 per litre to Rs77.1 per litre – exceeding the previous cap of Rs70 per litre, according to sources. Later, the government issued a notification to maintain the prices of petroleum products.
Express Tribune
08-02-2025
- Business
- Express Tribune
Fiscal irresponsibility
Listen to article The continuing spiral of public debt reveals a worrisome trend that puts the economy at risk and undermines the promise of progress for millions of citizens. Data in the most recent Finance Ministry Debt Policy Statement and the World Bank's Debt Heat Map report starkly highlight the severity of our financial predicament. With public debt exceeding 67.5% of GDP and a staggering rise in interest payments, the nation faces an uphill battle that demands immediate and decisive action. Unfortunately, the most popular historical course of action has been to kick the can down the road by just borrowing more. The relentless increase in public debt, which soared to Rs71.2 trillion last year, continues eroding the government's ability to finance essential services which, in turn, leaves the nation with an unhealthy and uneducated workforce as well as exposed to all sorts of international financial system shocks. While rising debt is not a major issue in itself, the rate of increase in relation to economic growth - reflecting the country's ability to sustain and pay off debt - is the real concern, and Pakistan's remains unsustainably high. This is partly due to high-interest expenses brought on by the expensive nature of recent borrowing that has overshadowed any potential benefits from a stable exchange rate or reduced expenditures. Interest payments alone reached a staggering Rs8.2 trillion this year, up 43% from the previous year. Even if we only rationalised borrowing practices, it would free up these trillions for essential public services. Many countries regularly fail to balance their budgets and are forced to borrow. Even the US regularly increases its federal debt limit instead of enforcing it. However, the US and others also at least pretend to care about their debt burden and use boom economic periods to pay off or otherwise restructure borrowing and existing spending in ways to make them more sustainable. Here, instead of acknowledging the problem, we still try to blame high-interest loans on conspiracy theories against our nuclear weapons, rather than donor concern over their money being rerouted to a nuclear programme.
Express Tribune
28-01-2025
- Business
- Express Tribune
100k homes promised annually
LAHORE: Punjab Chief Minister Maryam Nawaz Sharif has ordered a detailed review of three and five marla government housing schemes across the province. Presiding over a meeting in which progress made on the Apni Chhat, Apna Ghar programme was reviewed in detail, she asserted that the task of construction of 100,000 houses annually should be completed under any circumstance. The scheme to provide free plots to homeless citizens in Punjab was reviewed along with consideration of various proposals in this regard. It was decided that an eight-member committee would be constituted to finalise the terms of reference for providing plots to the public free of charge. The chief minister was informed that directions had been issued to expedite the development work of 2,807 plots in 35 government housing schemes in 22 districts across Punjab. Chief Minister Maryam Nawaz issued directives to accelerate the development process of 1,119 plots in nine government housing schemes in seven districts. She assigned the task to the stakeholders to complete the construction of 20,000 houses by the end of February across the province under the Apni Chhat, Apna Ghar programme. She was informed that loans worth Rs8.2 billion had been disbursed for the construction of 9,015 houses. Officials said 2,050 people had received the second installment of loans and 4,841 houses were nearing completion. The CM was informed that the number of citizens who had visited the portal of then programme had crossed 728,000. More than 400,000 applications along with complete documents have been received. The process of submission of the required documents for over 74,000 applications is under way.
