The move comes just months after the EU lifted its own ban amid Pakistan’s efforts to privatise national carrier PIA.
The United Kingdom has ended a five-year prohibition on Pakistani airlines, enabling them to seek permission to restart flights between Pakistan and the UK. This development coincides with Pakistan’s renewed push to privatize its struggling national airline, Pakistan International Airlines (PIA).
At a press briefing on Wednesday, Defence Minister Khawaja Muhammad Asif expressed confidence that restoring all international routes would enhance PIA’s valuation ahead of its privatization. He also revealed plans to relaunch flights to New York.
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While numerous private Pakistani airlines primarily serve domestic and regional routes—especially to the Middle East—Pakistan International Airlines (PIA) has traditionally been the sole operator of long-haul flights to the UK and Europe.
With a workforce of around 7,000, PIA has faced persistent criticism for inefficiency and mismanagement. The airline has struggled with unpaid debts, safety concerns, and regulatory challenges over the years.
PIA previously estimated that the ban on UK routes caused an annual revenue loss of approximately 40 billion Pakistani rupees (around $144 million). The UK destinations, including London, Manchester, and Birmingham, have been among PIA’s most lucrative markets. The airline also holds valuable landing rights at London Heathrow Airport, which could be reactivated.
The Pakistani government remains committed to privatizing the financially troubled airline and has been actively seeking potential buyers. Officials hope that recent operational reforms—resulting in PIA’s first profitable year in 21 years—will boost its appeal amid a broader privatization initiative supported by the International Monetary Fund.
In 2024, a potential sale collapsed after the interested party reportedly offered far less than the asking price.
This month, Pakistan approved four groups to submit bids for a 51% to 100% ownership stake in PIA, with final offers expected later this year.
PIA was founded in 1955 following the government’s nationalization of a struggling commercial airline, and experienced rapid expansion until the 1990s.