UK lifts 5-year ban on Pak's national carrier PIA ahead of privatisation

The UK imposed a ban on PIA in 2020 after one of its aircraft crashed into a Karachi street, resulting in the death of nearly 100 people

The United Kingdom on Wednesday lifted a five-year ban on Pakistan International Airlines (PIA), permitting it to seek approval to restart flight operations. The lifting of the restrictions comes at a time when Islamabad is ramping up efforts to privatise its national carrier, Reuters reported.

 

PIA was banned in June 2020 after one of its aircraft crashed into a Karachi street, killing nearly 100 people. The ban came a month after the crash, as Pakistani authorities launched an investigation into pilot licence irregularities.

 

The British High Commission said the restrictions were lifted following safety improvements by Pakistani authorities. The European Union had earlier lifted a similar four-year ban on PIA in November 2024.

 

 

Resumption of UK flights in pipeline

 

A PIA spokesperson told Reuters the airline is in the final stages of preparing to restart its UK operations and has submitted a proposal for the flight schedule.

 

Initially, flights are expected to resume on the Islamabad–Manchester route with three services per week, subject to approval.

 

Pakistan’s Defence Minister Khawaja Muhammad Asif said resuming flights would enhance PIA’s valuation ahead of its proposed privatisation. He added that authorities are also planning to resume flights to New York. 

Privatisation plans gain momentum

 

According to a PTI report, the Pakistani government has accelerated plans to privatise the debt-ridden national carrier by the end of 2025. A previous deal fell through when a potential buyer reportedly offered far below the asking price.

 

Established in 1955 after the government nationalised a loss-making private airline, PIA saw rapid growth until the 1990s. Its decline has since been marked by financial crises, staffing issues, and operational challenges. 

 

The Express Tribune reported that the Privatisation Commission board has approved four domestic bidders, three linked to the cement industry.

 

In 2023, over 7,000 employees reportedly did not receive their November salaries, reflecting the carrier’s worsening financial state. PIA continues to battle criticism over inefficiency, mounting debts, and safety lapses.