ISLAMABAD: Air Sial, a Pakistani private airline, has launched its first flight to the United Arab Emirates, it said on Monday, in a significant development for the Pakistani aviation industry.

Inaugurated in 2020 by the Sialkot Chambers of Commerce and Industry, the airline initially aimed to improve air travel to and from Pakistan’s Sialkot city, a major industrial hub in the eastern Punjab province.
Over the years, Air Sial has expanded its operations not just countrywide, but to countries in the Gulf region and uses a fleet of modern Airbus A320 aircraft.

“Pakistan Airports Authority successfully facilitated and supervised the launch of Air Sial’s inaugural international flight (PF784) from Islamabad International Airport to Dubai,” Air Sial said on Monday, adding the flight departed around 11:34am with 137 passengers aboard.

Air Sial’s domestic network includes major cities like Karachi, Lahore, Islamabad, Sialkot, Quetta and Multan.

The airline entered the international market in March 2023 with the launch of its inaugural flight to Jeddah, Saudi Arabia. It also flies to Riyadh, Madinah and Dammam.

Air Sial extended its international reach the same year in June by launching direct flights from Pakistan to Oman.

Late last month, the state-run Pakistan International Airlines (PIA) also resumed direct flights between Dubai and Pakistan’s mountainous Skardu district in a bid to boost tourism.

KARACHI: Pakistan’s annual inflation rate rose to 3.5% in May, higher than the April 2025 reading of 0.3%, data from the statistics bureau showed on Monday.

On a month-on-month basis, inflation decreased by 0.2% in May 2025, as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024. The CPI inflation average during 11MFY25 stood at 4.61%, compared to 24.52% in 11MFY24.

Inflation has cooled significantly, easing from 37.97% in May 2023.

The CPI reading is higher than the government’s expectations. In its monthly economic report released last week, the finance ministry expected inflation to ease to between 1.5% and 2% year-on-year in May, before picking up to 3%-4% in June.

“CPI inflation General, increased to 3.5% on year-on-year basis in May 2025 as compared to 0.3% of the previous month and 11.8% in May 2024,” the Pakistan Bureau of Statistics (PBS) said in its monthly report.

“On month-on-month basis, it decreased by 0.2% in May 2025 as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024.”

Food items, whose prices recorded an increase, included Eggs (24.38%), Chicken (8.63%), Condiments and Spices (5.50%), Sugar (4.07%), Gur (3.66%), Milk Powder (2.80%), Potatoes (1.64%), Butter (1.31%), Fresh Fruits (1.21%), Pulse Gram (1.09%), Beverages (0.87%), Meat (0.82%), Sweetmeat (0.79%) and Pulse Moong (0.53%).

Non-food items that witnessed an increase in rates were Cotton Cloth (3.20%), Motor Vehicles (1.86%), Postal Services (1.74%), Major Tools & Equipment (1.23%), Readymade Garments (1.02%), Tailoring (0.95%) and Cleaning & Laundry (0.65%).

The latest CPI reading was also higher than projections made by several brokerage houses.

JS Global projected Pakistan’s headline inflation to inch up to 2.7% in May.

“Pakistan’s CPI is expected to clock in at 2.7% for May. The base effect is now fading, signaling a return to normalized price trends. This is likely to take 11MFY25 average inflation to 4.7%, down from 11MFY24 average of 24.9%,” JS Global had said in a report.

Last month, the State Bank of Pakistan cut the key interest rate by 100 basis points (bps) to 11%, the lowest policy rate since March 2022 (9.75%). The central bank has cut the rate by 1,100 bps since June from an all-time high of 22%.