Pokhara Int Airport Records Rs 4 Lakh Revenue Annually, Concern Rises As It Has Rs 40 Crore+ Interest Obligation Annually

The Pokhara Regional International Airport, constructed with a loan of 22 Arab rupees, has completed its first year of operation. However, given the limited presence of international flights, the question of repaying the loan appears to be a huge concern.

From the day of its inaguration to now, only two charter planes from China and one from Bhutan have landed at the airport. Additionally, during the Jajarkot earthquake, two cargo planes from the Chinese People’s Liberation Army arrived with relief materials.

As per the report of epardafas, in the first year, Pokhara’s international airport reported that only approximately 4 lakh rupees were earned from international flights. This income primarily originated from Bhutan’s Druk Air, which returned with 42 passengers. Although other planes arrived with tourists, they departed from Pokhara without carrying any passengers.

The loan installment is notably high compared to the airport’s income, funded by a loan from China’s Exim Bank. 

With the airport performing poorly and struggling to sustain itself, questions are arising about whether it could be a debt trap set by the Chinese side to corner Nepal.

Even before the airport was inaugurated for takeoff, troubles had begun to mount. A day prior to the opening, the Chinese embassy in Kathmandu unilaterally declared that the Pokhara International Airport was a “flagship project of China-Nepal Belt and Road Initiative (BRI) cooperation.”

In March 2016, China’s Exim Bank provided a $215.96 million loan agreement for the construction of the airport.

According to report, to ensure its sustainability, the airport should be conducting a minimum of 100 daily domestic and 500 weekly international flights, as specified by the Civil Aviation Authority of Nepal (CAAN).

The airport is required to pay an annual interest of $3.2 million, for which it must generate income exceeding $19 million when operating at full capacity.