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KARACHI:

The State Bank of Pakistan (SBP) on Friday injected a total of Rs4.245 trillion into the financial system through reverse repo and Shariah-compliant Mudarabah-based open market operations (OMOs).

According to the central bank, the liquidity injection included Rs3.914 trillion through conventional reverse repo OMOs and Rs331 billion via Islamic Mudarabah-based operations. The OMO was conducted for seven-day and 14-day tenors.

For the seven-day reverse repo, the SBP received 18 bids totalling Rs3,643 billion at rates ranging between 11% and 11.07%, out of which 17 bids worth Rs3,642.5 billion were accepted at a rate of 11.01%. In the 14-day tenor, the central bank received 11 bids amounting to Rs272.5 billion, with accepted bids of Rs272 billion at a rate of 11.02%.

In its Shariah-compliant Mudarabah-based OMO, the SBP received four bids for the seven-day tenor, offering Rs331 billion at returns from 11.06% to 11.12%. The entire amount was accepted at 11.06%, while no bids were received for the 14-day Islamic tenor.

According to data released by the SBP, the rupee closed at Rs281.02 per dollar, gaining Rs0.01 from the previous day’s rate.

Meanwhile, gold prices in Pakistan continued their downward trajectory, mirroring trends in the international market, where the precious metal struggled to recover despite slightly softer-than-expected US inflation data that bolstered expectations of a Federal Reserve rate cut next week.

According to the rates issued by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell by Rs2,000, settling at Rs431,862, while the price of 10 grams declined by Rs1,714 to Rs370,252.

The fall marks the first weekly loss in nearly 10 weeks as global investors adjusted their positions ahead of next week’s US monetary policy announcement.

On Thursday, the yellow metal had already recorded a sharp drop of Rs3,500 per tola, bringing local prices down from recent highs. The consistent downward pressure reflects international market sentiment, where gold has been trading in a narrow band after heavy profit-taking earlier in the week.

KARACHI:

Forty years after Emirates’ maiden flight from Dubai to Karachi – operated with a Pakistan International Airlines (PIA) aircraft on lease and Pakistani crew, including captains – the two airlines stand worlds apart.

Emirates, which relied on PIA’s support in 1985, is now a $37 billion global aviation powerhouse with nearly 400 aircraft. PIA, once a regional trailblazer that helped launch airlines like Emirates and Singapore Airlines, is drowning in debt exceeding Rs800 billion and edging towards privatisation.

At Jinnah International Airport, Emirates marked its 40th anniversary with a ceremony attended by UAE Consul General Bakheet Ateeq Al-Rumaithi and aviation officials. A retrofitted Boeing 777 featuring Premium Economy cabins was showcased – a symbolic reminder of the airline’s transformation from modest beginnings into one of the world’s leading carriers.

Meanwhile, PIA is struggling to stay airborne. The government has created PIA Holding Company to absorb Rs660 billion in legacy debt, leaving about Rs300 billion in operational liabilities to the Civil Aviation Authority (CAA).

The privatisation drive, part of IMF-mandated reforms, has attracted five consortia, including groups led by Lucky Cement, Arif Habib Group, Fauji Fertiliser, and two domestic airlines – Airblue and Serene Air. However, aviation analysts warn that any new buyer will face “turbulent skies” in an industry globally known for wafer-thin margins.

Pakistan’s aviation sector remains vastly underdeveloped compared with regional peers. According to the benchmarking data, only 6 million domestic passengers flew in Pakistan last year – a mere 2.4% of the population.

In contrast, Indonesia, with a slightly higher population and per-capita GDP of $4,860, recorded 57 million domestic passengers (19.9%). India moved 154 million passengers domestically (11%), while China’s figure exceeded 665 million (47.5%). The US leads with 876 million domestic travellers – almost 2.5 times its population – highlighting how aviation demand correlates strongly with income, tourism, and infrastructure.

Pakistan’s per-capita GDP of $1,581 underscores this disparity. “An airline grows or shrinks with its economy,” says aviation consultant Afsar Malik, who has over three decades of industry experience. “When GDP rises, air travel doubles that growth rate; when GDP falls, losses multiply. Pakistan’s stagnating economy and weak tourism have clipped PIA’s wings.”

Despite the grim numbers, investor interest in the skies is rising. New private carriers such as Air Karachi and Air Punjab are preparing to launch, while South Air and Saudi Arabia’s Riyadh Air are reportedly eyeing Pakistani routes.

“Aviation carries a charisma that attracts businessmen – it’s about name and fame and less about fortune,” says Malik. “But most underestimate the risks.” Globally, only about 20% of airlines make profits, 30% break even, and half incur losses.

Malik points out that airline ventures demand massive financial stamina. If an investor puts in Rs1 billion and borrows Rs3 billion, a single year of loss can wipe out his equity. “And once you are in, it’s hard to exit.” The story of Shaheen Air, which collapsed under Rs5 billion debt, is a cautionary tale.

The government’s latest plan drops earlier conditions that reserved a 40% state stake and required $300 million in new investment, making the offer more flexible. Still, potential buyers must contend with inherited liabilities, outdated systems, and intense competition from foreign and domestic airlines.

Economic experts argue that the state should exit commercial aviation altogether. “Airline business is capital-intensive and politically volatile,” says one former PIA finance director. “Government control has cost taxpayers billions; private ownership may be the only way forward.”

Industry insiders say Emirates’ success lies in disciplined management, global recruitment, and strategic geography. Based in Dubai – a hub between Europe and Asia – Emirates capitalised on transit traffic and luxury branding. Its leadership, including long-time president Sir Tim Clark, maintained operational independence and long-term planning, backed by state ownership but run on commercial principles.

As Emirates celebrates four decades of connecting Pakistan to the world, its story stands as both an inspiration and a reminder – that success in the skies demands not just wings, but vision, discipline, and an economy strong enough to sustain flight.