Introduction and Background

On February 17, 2026, the Centre for Social Innovation and Foreign Policy (CESIF) convened a discussion program titled “Pokhara International Airport: Current Status and Future Outlook” at the Landmark Hotel in Pokhara.

The event brought together a wide spectrum of key stakeholders, including bureaucrats, local elected representatives, researchers, professors, students, journalists, and members of Pokhara’s business community. The primary objective of the program was to examine the operational, financial, and geopolitical realities surrounding Pokhara International Airport (PIA), address governance bottlenecks, and map out sustainable reform pathways to transition the airport from an underutilized national project into a functional regional aviation hub.

Key Themes of Discussions

1. Institutional Accountability Deficits and Systemic Governance Gaps

A central thread throughout the program was the persistent lack of accountable governance and institutional oversight in Nepal's infrastructure development pipeline. Speakers, particularly from CESIF, emphasized that severe accountability deficits have plagued the Pokhara International Airport project continuously from its initial planning and design phases through to implementation and daily management. It was noted that even well-intentioned national initiatives fail to deliver their promised socioeconomic outcomes when robust oversight mechanisms are absent. This systemic weakness not only hampers operational efficiency but also severely erodes public trust and damages institutional credibility across the civil aviation sector.

2. Financial Unsustainability and Heavy Loan Servicing Pressures

Participants engaged in an in-depth evaluation of the airport’s precarious financial structure, highlighting the acute disconnect between its present operational earnings and its staggering debt obligations. Key note speakers warned that at current revenue levels, the airport’s financial model is completely unsustainable and presents a growing fiscal risk. Because the earnings generated are insufficient to cover routine maintenance let alone service its loan repayments, stakeholders called for an urgent policy recalibration. Local leaders further argued that because the facility was conceived and executed as a major national infrastructure endeavor rather than a localized municipal asset, the central state must step in to assume or restructure the financial burden of debt service.

3. Geopolitical Bottlenecks and Restricted Airspace Access

The discussion revealed that Pokhara International Airport’s ongoing underutilization is not merely a product of domestic technical flaws, but is heavily tied to larger geopolitical realities and external constraints. In particular, restricted airspace rights and limited international flight entry routes have prevented foreign carriers from establishing regular schedules into Pokhara. Speakers underscored that technical adjustments alone will not solve this deadlock; rather, the federal government must pursue high-level, proactive diplomatic engagement with neighboring countries to restore vital air corridors and secure the bilateral air service agreements required to unlock the airport's regional potential.

4. Strategic Economic Value vs. The "White Elephant" Narrative

A strongly expressed theme among local elected officials and business community representatives was a firm rejection of the narrative dismissing Pokhara International Airport as a "white elephant" or a failed venture. Stakeholders maintained that the airport remains a vital, transformational strategic asset designed to anchor the economic future of Gandaki Province and support Pokhara’s official status as the country’s tourism capital. Rather than focusing indefinitely on past errors or writing off the project, speakers urged regional actors to highlight the airport's untapped capacity for driving local employment, attracting foreign investment, and expanding regional trade and cross-border exchanges.

5. Centralized Policy Inaction and Federal-Local Disconnect

An overwhelming sentiment of frustration emerged regarding the perceived inertia and detachment of central authorities in Kathmandu. Participants noted that actionable technical recommendations and policy reform packages submitted to federal ministries routinely sit unaddressed. Concerns were raised that central policymakers have tended to label the airport as "technically unfit" without initiating timely policy debates, opening constructive dialogue, or introducing essential structural fixes. As a result, panel members stressed that Pokhara’s local leadership, business associations, and civil society must form a united front to exert continuous, constructive pressure on the federal government to compel nationwide aviation reforms.

Recommendations

• Strengthen Diplomatic Engagement for Airspace Access: The federal government must prioritize proactive diplomatic negotiations with neighboring countries to restore key airspaces and secure necessary international route permissions.
• Recalibrate the Debt Repayment Framework: Given that PIA is a national infrastructure investment rather than merely a municipal project, the state should consider shouldering or restructuring the loan obligations to ensure long-term financial viability.
• Execute Technical and Regulatory Upgrades: Relevant aviation authorities must implement practical technical fixes alongside coordinated policy frameworks to optimize airport functionality and flight operations.
• Investigate Project Irregularities to Restore Public Trust: The Government of Nepal should initiate a thorough and transparent investigation into alleged corruption and irregularities during the project’s construction phases to restore institutional credibility.
• Formulate an Integrated Regional Tourism Strategy: Nepal Tourism Board and regional stakeholders should collaborate to expand air linkages, stimulating cross-border trade, business investment, and multi-destination tourism across South Asia and beyond.
• Establish a Stakeholder-Led Reform Pressure Group: Local government, civil society, and the business community must maintain collective, constructive pressure on the federal government to compel the delivery of a comprehensive, time-bound reform package.