Business

LONDON, June 19 — Gulf airlines are gradually returning to normal operations after months of disruption caused by the conflict involving Iran, which repeatedly affected air traffic across the Middle East. The region hosts some of the world’s largest carriers, whose networks were heavily impacted as missile and drone attacks forced airport closures and prompted airlines to reroute flights through limited safe corridors. According to Flightradar24 data, overall flight activity among major Gulf airlines has recovered to around 82% of levels recorded on February 27, the day before the conflict began. Gulf Air and Kuwait Airways have recently surpassed their pre-conflict flight volumes. The region’s three largest carriers — Emirates, Qatar Airways and Etihad Airways — are operating at or near 90% of their pre-war capacity. Just a month ago, Etihad and Qatar Airways had fallen to roughly 40-50% of normal levels, while Emirates maintained a relatively stronger schedule throughout the crisis. Following a preliminary agreement reached between the United States and Iran on Wednesday to end the nearly four-month conflict, with further talks on implementing a ceasefire expected on Friday, the outlook for Gulf carriers has improved significantly. James Halstead, managing partner at Aviation Strategy, said a lasting end to hostilities would allow the reopening of regional airspace and enable airlines to fully restore operations. “If it gets back to normal, I just see them acting as normal, coming back in full force,” he said. Safety concerns remain Drone attacks during the conflict repeatedly forced flights to divert, raising concerns for passenger and crew safety and restricting airlines to a limited number of secure routes. Many European and Asian carriers suspended services to the region, while travel warnings remain in place. Australia this week eased its travel advice for several Middle Eastern countries, providing a boost for the region’s aviation hubs. The European Union Aviation Safety Agency (EASA) has maintained its warning against flights to parts of the region because of conflict-related risks. The agency said it would assess recent developments when reviewing its advisory, which remains valid until June 24, but noted it was still too early to determine whether the current de-escalation would result in a lasting reduction in risks to civil aviation. Impact extends beyond the Gulf Gulf countries have invested heavily in recent years to strengthen their position as global transport and tourism hubs through large-scale spending on airports, hotels and events. A full reopening of regional airspace is expected to provide further support to Gulf economies. Emirates CEO Tim Clark said last week the airline would focus on reassuring passengers about safety and reliability. Flightradar24 data shows the Dubai-based carrier is operating at 86% of its pre-conflict flight volume. Etihad Airways has introduced complimentary medical travel insurance for visitors to Abu Dhabi from July through December. Flight activity at Gulf Air and Etihad stood at 93% of February levels, while Kuwait Airways and Qatar Airways had recovered to 86% and 87%, respectively. Air Arabia and Flydubai were operating at 75% and 57% of their pre-conflict levels. The effects of the conflict have extended well beyond the Middle East. Rising jet fuel prices, which have recently begun to ease, disrupted airline finances and schedules across Europe and Asia, while some carriers temporarily grounded aircraft and operated repositioning flights. Earlier this month, the International Air Transport Association (IATA), which represents more than 370 airlines responsible for around 85% of global air traffic, nearly halved its 2026 industry profit forecast because of the conflict. The association now expects global airlines to post a combined net profit of $23 billion in 2026, down from an earlier estimate of about $41 billion and below the $45 billion recorded in 2025.

KARACHI: Khurram Ijaz, General Secretary of the Businessmen Panel Progressive (BMPP) and former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has sounded alarm over Pakistan’s fiscal trajectory, warning that debt servicing is swallowing more than half of the country’s tax revenue. Citing budget documents, he noted that the government has earmarked Rs8.054 trillion for mark-up payments in FY2026–27, including Rs6.96 trillion on domestic debt and Rs1.07 trillion on foreign debt. With the Federal Board of Revenue (FBR) targeting Rs15.26 trillion in tax collection, he stressed that debt servicing alone will consume the majority of taxpayers’ contributions. “How long can the economy sustain such fragile fiscal conditions?” he asked, urging policymakers to rethink borrowing-led strategies and instead strengthen indigenous economic capacity. “It is only mark-up. Just imagine the quantum of debt,” he remarked. According to State Bank of Pakistan (SBP) data, total government debt surged to Rs81.93 trillion by April 2026, up from Rs74.94 trillion a year earlier—an increase of nearly Rs7 trillion in just twelve months. He added that the government continues to finance its budget deficit through domestic borrowing from the banking system via Treasury Bills and Pakistan Investment Bonds. He noted that commercial banks prefer investing in government securities due to secure and high returns, rather than channeling funds into productive sectors that generate real economic growth. Khurram Ijaz also warned that persistently high interest rates are compounding fiscal pressures on both the government and the general public. He called on the SBP to significantly reduce the policy rate to encourage investment in productive sectors. “Keeping high interest rates only attracts people to park their money in banks and earn returns without contributing to the real economy,” he said. He further observed that many industrialists are shifting capital away from manufacturing and into banking deposits due to high energy costs, labour expenses, and regulatory burdens that make industrial operations increasingly difficult. He noted that while monetary policy had previously seen easing, bringing rates down to 10.5%, the trend has reversed, with the policy rate now rising to 11.5%. Mr. Ijaz further stated that past restrictions on government borrowing from the SBP were intended to avoid excessive monetary expansion, and similar conditions have also been influenced by International Monetary Fund (IMF) requirements. As a result, borrowing pressure has shifted toward commercial banks, increasing the cost of fiscal management. He added that if the government had continued borrowing from the central bank, a significant portion of domestic debt servicing would have instead been reflected as profit transferred back into the national account. Khurram Ijaz concluded by urging the government to shift focus away from debt-driven financing and instead prioritize export-led growth and industrial expansion, warning that continued reliance on borrowing will only deepen the tax burden on citizens.

Karachi, PK, 19 June 2026The Magnum Ice Cream Company (TMICC) the world’s leading ice cream business, is expanding its presence throughout Pakistan, entering into a collaboration with Blue Foods Pvt Ltd, operator of Tim Hortons Pakistan to introduce Wall’s Velvetti Vanilla Ice Cream across Tim Hortons locations nationwide.The partnership reflects TMICC Pakistan’s focus on building scale, increasing brand visibility, and embedding ice cream into new occasions. Through this new collaboration, TMICC aims to broaden reach while delivering consistent, high-quality experiences to consumers. The collaboration will see, Wall’s Velvetti Vanilla Ice Cream featured in Tim Hortons dessert offerings across all outlets in Pakistan. This new range is part of the brands expanding portfolio of offerings for beloved consumers. The collaboration also brings together TMICC’s ice cream expertise and Tim Hortons’ established café network and well-loved products, strengthening both organisations’ presence in the growing foodservice segment while enhancing the overall dessert offering. In addition, the collaboration highlights TMICC Pakistan’s broader strategic ambition, to expand distribution channels and increase brand visibility within out-of-home consumption environments. “We are excited to collaborate with Tim Hortons in Pakistan to expand the availability of Wall’s Velvetti Vanilla Dairy Ice Cream through their established local café network. As we continue to grow our business in Pakistan, partnerships such as this play a key role in strengthening our presence, extending our reach, and creating new ice cream consumption occasions for consumers.” – Mert Turgut, General Manager, Magnum Pakistan “At Tim Hortons, we continuously look for ways to enhance our menu and elevate the guest experience. Our collaboration with Magnum Pakistan allows us to strengthen our dessert portfolio by incorporating a well-recognised and trusted product, aligned with our focus on quality and innovation.” – Ali Kazmi, Group Chief Commercial Officer, Tim Hortons Pakistan As ice cream consumption continues to grow as a key category within the desert café segment, this collaboration positions both organisations to respond to evolving consumer preferences while unlocking new growth opportunities.

Karachi, June 17, 2026 – BankIslami, one of Pakistan’s fastest-growing Islamic banks, has entered a Technical Services Agreement with Al-Hilal Shariah Advisors for the provision of specialized equity screening and data analytics services. Under this agreement, Al-Hilal Shariah Advisors will provide technical support for screening and monitoring of listed equities at the Pakistan Stock Exchange against pre-defined Shariah screening parameters approved by BankIslami’s Shariah Board. This collaboration will enable timely identification of listed equities transitioning towards Shariah compliance. The incorporation of data-driven insights will strengthen Shariah governance and enhance transparency. The partnership was formally marked at a signing ceremony at BankIslami’s headquarters in Karachi, attended by Imran H Shaikh, Dy Chief Executive Officer of BankIslami, Faraz Younus Bandukda, Chief Executive Officer of Al-Hilal Shariah Advisors, along with other senior representatives from both organizations. “This collaboration is a reflection of BankIslami’s commitment to enhance operational efficiency and cost-effectiveness by leveraging specialized technical expertise where available,” Rizwan Ata, CEO and President of BankIslami, said on the occasion. “It also highlights the importance of incorporating data-driven insights to support the development of Shariah-compliant capital market activities in Pakistan.” This agreement reflects BankIslami’s commitment to strengthening Shariah governance through reliable and up-to-date compliance monitoring.

Monitoring of Traffic Underway Through 1,300 Cameras; Additional 2,250 Cameras to Be Installed, Pir Muhammad Shah Karachi has a Modern Traffic System Similar to Developed Cities, Korangi Facilitation Center Should Be Upgraded for Public Convenience, Says Muhammad Ikram Rajput Karachi: Deputy Inspector General (DIG) Traffic Karachi, Pir Muhammad Shah, said that modern traffic monitoring and management measures have led to nearly a 30 percent reduction in traffic-related fatalities within six months. Speaking to industrialists and the business community at the Korangi Association of Trade and Industry (KATI), he stated that 447 fatal traffic accidents were reported during the same period last year, compared to 308 this year, reflecting a significant decline. The event was attended by KATI President Muhammad Ikram Rajput, Vice President Muhammad Talha Ali, former President Junaid Naqi, Ehteshamuddin, Sheikh Fazal-e-Jalil, Syed Farrukh Mazhar, Tariq Malik, Israr Ahmed, SSP Traffic Korangi Israr Ahmed Changezi, SSP Traffic East Amjad Hayat, SSP Traffic Malir Muhammad Tahir Khan, DSP Korangi Qalandar Bakhsh Narejo, along with a large number of members and industrialists. Pir Muhammad Shah said police statistics also showed a substantial reduction in serious injuries resulting from traffic accidents. Severe injury cases dropped from 806 last year to 569 this year, recording a decline of more than 300 cases. Deaths caused by heavy vehicles also decreased significantly 50 percent from 155 to 75. He emphasized that road discipline and traffic behavior reflect a society’s civic values and collective consciousness. According to him, extensive reforms introduced in recent months to modernize Karachi’s traffic management system are beginning to deliver measurable results. “Every month, valuable lives are being saved because of these reforms,” he said, adding that public attitudes have also improved. He noted that while seatbelt usage was once limited, even app-based drivers now generally do not begin trips until passengers fasten their seatbelts. To address traffic management challenges, he said the department has established a Traffic Flow Unit and a Traffic Drone Unit. Currently, traffic monitoring is being carried out through 1,300 surveillance cameras, while an additional 2,250 cameras will be installed in the next phase. The DIG Traffic reiterated that there would be zero tolerance for underage driving, adding that the minimum fine for motorcycle violations is Rs2,500, enforced under existing government legislation. He further said encroachments and illegal parking remain major causes of traffic congestion. Authorities have identified 34 critical traffic bottlenecks across the city, where targeted interventions are being implemented. Earlier, KATI President Muhammad Ikram Rajput said Karachi’s industrial activity and economic growth are directly linked to an efficient traffic system. He appreciated the traffic police’s use of modern technology, the e-challan system, and measures introduced to improve traffic discipline. Rajput said the business community would continue supporting government institutions in promoting public awareness and compliance with traffic laws. He added that Karachi’s e-challan system aligns with standards adopted in developed cities such as Dubai and London. He called for the upgradation of the Korangi Facilitation Center and recommended launching public awareness programs at multiple levels. He stressed that improved arrangements are necessary to maintain smooth traffic flow. Rajput also proposed a series of measures, including effective traffic management in Korangi Industrial Area and adjoining roads, consultation-based policies for heavy vehicle movement, increased deployment and monitoring by traffic police in industrial zones, continuous action against encroachments and illegal parking, upgraded road markings and traffic signage, improved verification and complaint resolution mechanisms within the e-challan system, clear lane markings on major roads, and the formulation of a joint traffic improvement plan involving traffic police, municipal authorities, and the industrial community. Former KATI President Junaid Naqi said urban discipline and modern traffic administration are essential features of developed societies. He emphasized enforcement of laws related to vehicle fitness, axle load limits, and regulated movement of heavy traffic during night hours. KATI Vice President Muhammad Talha Ali noted that VIP movements, protests, and sit-ins on major roads often disrupt traffic flow and require comprehensive planning. He said improved traffic management would not only ease daily life for citizens but also positively impact business activity and supply chains in industrial areas. Other speakers at the event included former presidents and chairpersons Ehteshamuddin, Sheikh Fazal-e-Jalil, Tariq Malik, and Dr. Zahid Ansari.