New Airline and Bullet Train Initiatives Aim to Stimulate Growth Amidst National Aviation Challenges.
Key Takeaways:
i) Punjab government to launch ‘Air Punjab‘ with four leased aircraft, aiming to start operations within a year.
ii) Provincial government plans bullet train service from Lahore to Rawalpindi, potentially expanding to other routes.
iii) Federal government’s PIA privatization attempt fails, highlighting ongoing challenges in the national aviation sector.
Lahore, Pakistan – April 26, 2025 – The Punjab government has announced ambitious plans to launch its own airline, “Air Punjab,” and a bullet train service, signaling a potential boost to the regional economy. This move comes at a time when the federal government is grappling with the unsuccessful attempt to privatize Pakistan International Airlines (PIA).
Punjab Information Minister Azma Bokhari revealed that Air Punjab is slated to commence operations within the next year, utilizing four aircraft acquired through leasing. This initiative aims to improve connectivity within the province and potentially create new economic opportunities. The provincial government’s decision to establish its own airline follows the federal government’s failed efforts to sell off PIA, highlighting the ongoing challenges within Pakistan’s national aviation sector. The sole bid received for PIA fell significantly below the government’s expectations, effectively stalling the privatization process.
In addition to Air Punjab, the Punjab government is collaborating with Pakistan Railways to develop a high-speed bullet train service connecting Lahore and Rawalpindi. This project envisions faster and more efficient transportation between the two major cities, with potential expansion to other key routes within Punjab. The government believes that improved transportation infrastructure will stimulate economic activity and attract investment to the region.
