The Aircraft Owners and Operators Association (AOOA) has alleged that foreign airlines operating in Pakistan transfer between $2 billion and $2.4 billion abroad annually through offshore payment gateways, calling for a comprehensive forensic tax audit of airlines operating in the country.
In a letter sent to Finance Minister Muhammad Aurangzeb on Wednesday, AOOA founder Imran Aslam Khan urged the federal government to investigate airline ticket revenues and introduce restrictions on payments processed through foreign financial platforms.
“Billions of dollars in airline ticket revenues are quietly bypassing domestic financial channels — settled through offshore payment gateways and remaining largely invisible to local tax authorities,” the association stated.
According to AOOA estimates, annual airline ticket sales in Pakistan generate between $3.2 billion and $3.6 billion. However, the association claimed that only a portion of this revenue is recorded through domestic financial channels.
The letter estimated that Pakistan International Airlines (PIA) accounts for approximately $750 million in annual ticket revenue, while other domestic carriers collectively generate around $65 million.
It further stated that officially recorded foreign remittances range between $80 million and $411 million.
“Combined, these documented streams with maximum amount remitted it totals to USD 1.226 billion — leaving an unaccounted gap of $2 to 2.4 billion every year,” the letter said.
The association questioned whether the remaining revenue was being processed through offshore payment gateways and retained outside Pakistan’s banking system.
“Can financial authorities accurately track this missing capital?” the letter asked.
It also raised concerns about whether airlines, including domestic carriers, were meeting their statutory tax obligations.
“Was this revenue processed through foreign payment gateways and retained offshore, bypassing Pakistan’s banking system entirely even by the domestic airlines?” the association questioned.
The AOOA also sought an explanation for the use of foreign payment infrastructure by Pakistani airlines, asking: “Why do even domestic airlines favour foreign payment gateways over local financial infrastructure?”
To address these concerns, the association recommended a five-year forensic tax audit covering all airlines operating in Pakistan, alongside regulatory measures to restrict the use of offshore payment gateways for ticket sales.
The association’s estimates and allegations have not been independently verified, and the reported difference between estimated ticket sales and documented financial flows does not, by itself, establish tax evasion or unlawful capital transfers.
No immediate response from the Finance Ministry or the airlines concerned was included in the report.