Saudi Arabia’s Flyadeal launches operations in Pakistan with inaugural flight from Riyadh to Karachi

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Updated 02 February 2025
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Saudi Arabia’s Flyadeal launches operations in Pakistan with inaugural flight from Riyadh to Karachi

Saudi Arabia’s Flyadeal launches operations in Pakistan with inaugural flight from Riyadh to Karachi
  • After Karachi, Flyadeal, a subsidiary of the Kingdom’s national flag carrier, aims to expand operations to other Pakistani cities as well
  • Given ‘immense’ response in Pakistan, the airline has decided to increase weekly flights from four to six by March 1, official says

KARACHI: Flyadeal, a low-cost Saudi airline, has commenced its operations in Pakistan with an inaugural flight from Riyadh to Karachi, an airline official said on Saturday.
Headquartered in Jeddah, Flyadeal is a subsidiary of Saudi national flag carrier, Saudia, and was launched on Sept. 23, 2017. Initially, it flew to destinations within the Kingdom, but expanded its network by launching flights from Dammam to Cairo in Jun. 2022.
Flyadeal’s move to expand operations to Pakistan comes as Saudi Arabia seeks to boost its tourism sector under the Vision 2030 program, which aims to attract over 150 million domestic and international tourists annually to the Kingdom by the end of the decade.
The inaugural Flyadeal flight, F3-661, arrived at Karachi’s Jinnah International Airport at 8:04am on Saturday, according to a Pakistani Airport Authority (PAA) spokesperson. It was followed by the departure of another flight from Karachi to Riyadh.
“We are very proud that today was the first departure from Karachi to Riyadh of our flight,” Farooq S. Ahmad, Flyadeal’s head of sales told Arab News on Saturday.
“The capacity of the aircraft is 186 seats and the aircraft went full. In fact, [for] the next one week, all our flights are full to Jeddah and to Riyadh.”

The official said a ceremony was held at the Karachi’s Jinnah International airport to mark the occasion, with passengers receiving gifts by the airline. He said consumers inevitably benefit whenever a new airline enters the market and competition increases.
Ahmad highlighted an existing strong demand for travel between Pakistan and Saudi Arabia, driven by religious tourism, the presence of a large Pakistani diaspora in the Kingdom, and general travel between the two countries.
“In the Pakistani market, Saudi Arabia is probably the number one destination,” Ahmad said. “There is, of course, the biggest attraction of Haramain Sharifain. So, people go for Hajj and Umrah there. Also, there’s a large diaspora of Pakistanis living in Saudi Arabia. So, there’s a lot of home return and, blue-collar, white-collar traffic going to Saudi Arabia.”
Flyadeal’s competitive fares are expected to appeal to a broad range of travelers, according to the airline official. While the airline operates on a low-cost model, it caters to all passenger segments.
“We are a low-cost airline, but it’s not that we are targeting people only on a budget. We have more than 200 flights per day out of Jeddah, Riyadh and Damam. And our clientele is of all categories,” Ahmad said.
“So, it’s not that we are only targeting a specific class of people or specific group of people. What it is that it’s just another option in the market. We are very competitive.”
Following immense response in Pakistan, Flyadeal has already decided to double its weekly flights between Karachi and Jeddah from two to four. With two weekly flights operated between Riyadh and Karachi, it will bring the total number of flights to six from March 1, according to Ahmad. 
The airline also has ambitious plans to expand its network within Pakistan.
“We have already increased our flights,” he shared. “We also have a complete plan of going to various parts of Pakistan and northern Pakistan. Eventually, Lahore, Islamabad, Peshawar, hopefully Multan and Sialkot. We have a very comprehensive plan for Pakistan.”
Flyadeal has established an office in Karachi and currently, it is partnering with Matchless Global Group as its General Sales Agent (GSA) in Pakistan, leveraging their existing network of offices, according to the official.
The airline’s expansion into Pakistan is also expected to create employment opportunities in the South Asia country.
“Any business opportunity to any country opens up opportunities for employment,” Ahmad added.

 


Pakistan stocks surge by over 1,400 points amid decline in oil prices, policy rate cut hopes

Pakistan stocks surge by over 1,400 points amid decline in oil prices, policy rate cut hopes
Updated 22 sec ago
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Pakistan stocks surge by over 1,400 points amid decline in oil prices, policy rate cut hopes

Pakistan stocks surge by over 1,400 points amid decline in oil prices, policy rate cut hopes
  • Benchmark KSE index closes at 113,713 points, surging 1.3 percent more from last close
  • Central bank’s Monetary Policy Committee is set to review interest rate on Mar. 10

ISLAMABAD: The Pakistan Stock Exchange (PSX) surged by over 1,400 points on Thursday as bulls dominated the trading session, with analysts attributing the rise to a drop in oil prices at the international market and investors’ hopes of a further cut in the policy rate by the central bank. 

The benchmark KSE-100 index rose by 1,459.41 points or 1.3 percent to close at 113,713.17 points on Thursday, up from the previous close of 112,253.76.

The development takes place as the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) is set to review the interest rate on Mar. 10, with many expecting the bank to slash the interest rate further. 

“Stocks closed bullish led by scrips across the board amid speculations ahead of SBP policy announcement on March 10,” Ahsan Mehanti, managing director and CEO of Arif Habib Commodities, told Arab News. 

It said investors’ expectations for further ease in the central bank’s policy after treasury bill auction yields remained flat, following a decade-low consumer price index inflation which was recorded at 1.5 percent year-on-year in February. 

Prominent Pakistani brokerage house Topline Securities attributed the surge in stocks to a sharp decline in global oil prices. 

 “This rally was primarily driven by a sharp decline in international oil prices, which plunged to multi-year lows, uplifting investor sentiment,” Topline Securities said in its daily market review. 

“Moreover, speculation surrounding high-level meeting on the clearance of the longstanding circular debt further fueled optimism across the board.”

The report highlighted how the benchmark index surged to an intraday high of 1,617 points causing the equity market to witness a robust rebound in today’s session.

It added that a total of 372 million shares changed hands which generated a turnover of Rs26.2 billion with PIBTL dominating the volume charts.

The development takes place as an International Monetary Fund (IMF) team is in the country for the first review of the $7 billion loan program that Islamabad secured last September.

A nine-member mission, led by IMF Mission Chief in Pakistan Nathan Porter, is in the country to assess Pakistan’s economic performance and determine the release of a $1.1 billion tranche from the $7 billion Extended Fund Facility (EFF) over the next three weeks, secured as part of Islamabad’s economic recovery plan.


Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 

Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 
Updated 47 min 11 sec ago
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Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 

Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 
  • Pakistani analyst says central bank may maintain policy rate due to IMF’s demand of higher taxes
  • Pakistan’s Monetary Policy Committee (MPC) is set to meet on Mar. 10 to review borrowing rate 

KARACHI: Financial experts on Thursday remained divided over whether the International Monetary Fund’s (IMF) ongoing first review of Pakistan’s $7 billion bailout program will lead to the central bank increasing or decreasing the interest rate next week. 

The central bank’s Monetary Policy Committee (MPC) is set to meet and review the interest rate on Mar. 10. The development takes place as a delegation of the IMF is reviewing Pakistan’s economic performance in Islamabad under its $7 billion Extended Fund Facility program.

The State Bank of Pakistan (SBP) has reduced borrowing rates by a cumulative 1,000 basis points since June 2024 to 12 percent to spur economic growth. Shankar Talreja, director of research at brokerage firm Topline Securities, told Arab News he expected the central bank to maintain the interest rate at 12 percent and not introduce a further cut. 

“We expect the central bank to remain prudent and observe the status quo in upcoming meeting,” Talreja told Arab News. 

Talreja explained that since Pakistan is facing a revenue shortfall and to achieve the desired tax-to-GDP ratio, the IMF can push the government to impose additional tax measures. These in turn can lead to inflation which would cause the SBP to maintain the interest rate at 12 percent rather than slash it further. 

The IMF has expressed concern over Pakistan facing a revenue shortfall of about Rs600 billion in this fiscal year.

The international lender wants cash-strapped Pakistan to increase its revenues by scrapping energy subsidies and imposing taxes on agriculture, real estate and retail sectors.

Talreja said the anticipated tax measures may bring pause to the interest rate easing cycle “for a few months.”

He said certain tax measures were already outlined in the IMF’s detailed report, such as the increase in advance income tax on imports of machinery, withholding tax on supplies and increase in federal excise duty on sugary drinks.

“Any shortfall over and above Rs500 billion will trigger additional tax measures to be taken by the government in its new budget for the financial year 2026,” Talreja explained. 

A majority of market participants said they expected a rate cut ranging from 50 basis points to 150 basis points, a survey conducted by Topline Securities said last week. 

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Pakistan’s top trade body, on Wednesday called for a 500-basis-point (bps) cut in the policy rate. The body said businesses remained dissatisfied with monetary policy and demanded a cut due to easing inflation. 

Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., disagreed with Talreja. He said the IMF can set a lower tax target for Pakistan, which would not trigger further inflation. 

“We believe that the IMF review and the miss in tax collection targets will not impact the SBP’s decision,” Ghani told Arab News.

Pakistan’s macroeconomic indicators have gradually improved since it secured the IMF bailout last summer. The country’s consumer price index (CPI) inflation rate, maintaining a downward trend on Monday, hit a more than 9-year low at 1.51 percent year-on-year in February. 

If the IMF approves the first review of the loan, the country is in line to receive about $1 billion as the second installment of the loan package.


Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack

Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack
Updated 06 March 2025
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Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack

Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack
  • Five soldiers, 13 civilians killed on Tuesday in attack on military base in Bannu city in northwestern Pakistan
  • Military says attack was orchestrated from neighboring Afghanistan whose Taliban rulers deny allowing militant activity

ISLAMABAD: Pakistan army chief General Syed Asim Munir said on Thursday Afghanistan continued to be a “safe haven” for militants, a day after the military said an attack on a cantonment in the country’s northwest had been planned and orchestrated from the neighboring country, 

Suicide bombers drove two vehicles packed with explosives into a military base in Bannu city in an attack staged by more than a dozen militants on Tuesday. The army said five soldiers and 13 civilians had been killed in the assault, which caused a partial collapse of the military compound’s outer wall and damaged nearby infrastructure, including a mosque and residential building.

Pakistan is battling a surge in attacks by its own chapter of the Taliban movement, known as Tehreek-e-Taliban Pakistan (TTP), on police and military in areas near the Afghan border. Islamabad says the militants operate from neighboring Afghanistan, whose rulers deny the charge.

“Terrorist groups … continued to operate from Afghan soil against Pakistan,” the military said in a statement, quoting Munir after he visited Bannu on Thursday. “The use of foreign weapons and equipment in recent terrorist attacks was clear evidence that Afghanistan remained a safe haven for such elements.”

The army chief added that “no entity would be allowed to disrupt Pakistan’s peace and stability.”

The Afghan government has not responded to Pakistan’s accusations. 

In a statement released on Wednesday, the military said intelligence reports had “unequivocally confirmed the physical involvement of Afghan nationals” in the Bannu attack, adding that evidence proved the attack was orchestrated and directed by insurgents operating from Afghanistan.

“Pakistan expects the Interim Afghan Government to uphold its responsibilities and deny its soil for terrorist activities against Pakistan. Pakistan reserves the right to take necessary measures in response to these threats emanating from across the border,” the military said.

Jaish-e-Fursan Muhammad, a militant faction affiliated with the Pakistani Taliban (TTP), claimed responsibility for the attack in a statement released to media.

Pakistan has repeatedly accused the Taliban authorities in Kabul of facilitating cross-border militant attacks, a charge Afghan authorities deny. 

The TTP was formed in 2007 as an umbrella organization of various hard-line groups operating individually in Pakistan.

The TTP pledges allegiance to, and gets its name from, the Afghan Taliban, but is not directly a part of the group that now rules Afghanistan. Its stated aim is to impose Islamic religious law in Pakistan, as the Taliban have done in Afghanistan.

The TTP is responsible for some of the bloodiest attacks in Pakistan, including on churches and schools and the shooting of Malala Yousafzai, who survived the 2012 attack after she was targeted for her campaign against the Taliban’s efforts to deny women education.

Militants have targeted Bannu several times in the past also. Last November, a suicide car bomb killed 12 troops and wounded several others at a security post. In July, a suicide bomber detonated his explosives-laden vehicle and other militants opened fire near the outer wall of the military facility.


International hockey returns to Pakistan as German junior team arrives in Islamabad 

International hockey returns to Pakistan as German junior team arrives in Islamabad 
Updated 06 March 2025
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International hockey returns to Pakistan as German junior team arrives in Islamabad 

International hockey returns to Pakistan as German junior team arrives in Islamabad 
  • Pakistan marked first international hockey match played in the country for 7 years when it played series against China in 2011 
  • Before that, Pakistan had last staged an international match in 2004 when it hosted the Champions Trophy in Lahore 

ISLAMABAD: The German Junior Hockey Team, world champions, arrived in Pakistan on Thursday for a four-match series, marking the return of international hockey to Pakistan after nearly a decade and a half, the government’s press department said in a statement. 

Pakistan marked the first international hockey match played in the country for seven years when Chinese played four matches here in what was dubbed as the ‘Friendship Series’.

Before that, Pakistan had last staged an international match in 2004 when it hosted the Champions Trophy in Lahore but after that foreign teams refused to play in the country due to security concerns.

Since the September 11 attacks in the United States, foreign teams have been reluctant to travel to Pakistan in many sports and the South Asian country was left completely isolated as a sporting venue after militants attacked the Sri Lankan cricket team in Lahore in March 2009.

“Under the vision of Prime Minister Shehbaz Sharif, this initiative aims to provide Pakistani junior players with international exposure and reestablish Pakistan as a hub for global hockey,” PID said about the four-math series between Pakistan and Germany.

“The series will feature one match in Islamabad and three in Lahore, promising a thrilling competition for fans.”

The two teams will face each other in Lahore on Mar. 6, 8 and 11 while one match will be played in Islamabad on Mar. 13.

“The series holds great significance for both teams as they prepare for the Hockey Junior World Cup being played 2025 in India,” state media reported. 

Field hockey, Pakistan’s national sport, once propelled the country to Olympic gold and global glory, but the game has waned in popularity and participation over the past two decades. Poor management, lack of infrastructure and the rise of cricket has contributed to the decline. The failure to adapt to modern demands, including fitness and artificial turfs, has further deepened the crisis.

According to the latest rankings released by the International Hockey Federation, Pakistan is ranked number 15 in the world in field hockey.


Pakistan says privatization of PIA to be completed in three months 

Pakistan says privatization of PIA to be completed in three months 
Updated 06 March 2025
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Pakistan says privatization of PIA to be completed in three months 

Pakistan says privatization of PIA to be completed in three months 
  • Pakistan is looking to offload 51-100 percent stake in PIA, part of reforms under $7 billion IMF bailout program 
  • Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential

ISLAMABAD: Federal Minister for Privatization Abdul Aleem Khan said on Thursday the privatization process of loss-making national carrier Pakistan International Airlines (PIA) would be completed in three months. 

Cash-strapped Pakistan is looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program approved last year. A final bidding process for the airline’s privatization last October attracted just one bid of $36 million for a 60 percent stake in the national flag carrier. The government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that is below the government-set minimum price of 85 billion Pakistani rupees.

Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.

Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.

“Federal Minister further mentioned that to make PIA’s privatization more attractive, a new roadmap is being provided and it is expected that all stages of this privatization process will be completed within the next three months,” Khan’s office said in a statement after he met the Australian High Commissioner to Pakistan and discussed the privatization of PIA. 

Last year, PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards. EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people.

Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.

“The privatization minister emphasized that there is an expectation of better expressions of interest from investors this time around as the introduction of PIA flights to Europe has made the privatization environment even more lucrative and favorable,” the statement said. “Due to recent measures, the national airline is ready to become profitable again.”

Khan added that PIA flights to the UK would also begin in three months.