The Carriage by Air (Amendment) Act, 2026 has been introduced to update Pakistan’s aviation liability laws in line with the latest international requirements of the Montreal Convention 1999 and to revise domestic compensation limits after more than a decade.
The amendment primarily expands the definition of “Court” by inserting a provision that designates Consumer Courts as the primary forum for claims arising out of air carriage disputes. Where Consumer Courts do not exist, the Federal Government may notify any competent court. This change brings clarity and provides passengers a more accessible forum for claims.
A major amendment empowers the Federal Government to revise the Fourth and Fifth Schedules by notification, instead of waiting for Parliamentary amendments. This allows Pakistan to automatically adjust to revised liability limits issued internationally by ICAO every five years, and update domestic compensation levels based on inflation.
The Act also introduces new Section 5A, laying out rules for court proceedings of aviation compensation claims. These include a strict two-year limitation period, provision for interim and final orders, reliance on documents with limited oral evidence, and mandatory decision within six months, with day-to-day hearings if delayed. Courts must also report delays to the High Court.
The amendment revises the Fourth Schedule, significantly increasing compensation amounts. For example, compensation for a passenger’s death under international carriage rises from 100,000 SDR to 151,880 SDR, while multiple other compensation limits—such as baggage delay, cargo claims, and injury damages—are proportionately enhanced.
The domestic compensation schedule (Fifth Schedule) is also updated. For death or injury in non-international flights, liability is raised to Rs. 20 million, and carriers can no longer limit liability below this amount unless they prove the damage was not due to their negligence.
Provisions for advance payments in case of passenger death or injury are strengthened, requiring carriers to pay promptly upon succession certificate submission, without such payment being considered an admission of liability.
The amendment also introduces rule-making powers for swift dispute resolution and fast compensation processing.
According to the Statement of Objects and Reasons, the changes were necessary because ICAO revised liability limits in 2019 and again in 2024, requiring Pakistan to align its laws with international obligations. It further notes that domestic compensation figures were outdated since 2012 and needed enhancement due to inflation.
