Pakistan International Airlines to resume US flights after 7 years of suspension, BA

Pakistan International Airlines (PIA) will be resuming flights to the United States after seven years of suspension, marking a significant development for the country’s aviation sector, ARY News reported. A Memorandum of Understanding (MoU) has been signed between US Federal Aviation Administration (FAA) to settle pending financial obligations.

According to DG CAA Nadir Shafi Dar, payments to the FAA are expected to be made shortly, paving the way for the FAA’s delegation to visit Pakistan by February or March.

According to ARY News, the development has increased chances that Pakistan will be reclassified to ‘Category One’ status with the FAA, allowing direct flights to the US to resume, as per ARY News.

Notably, PIA’s flights to the US were suspended in 2017, when the airline operated six flights per week between Pakistan and the US, including four to New York and two to Chicago.

The Pak government is also intensifying efforts to privatise PIA through government-to-government (G2G) agreements, with a deadline set for December 31, ARY News reported on Saturday, citing sources.

According to the report, both Abu Dhabi and Qatar have expressed strong interest in PIA’s privatisation, creating a potential opportunity for foreign investment. Active discussions are underway with both countries to finalise the terms of the deal.

To attract investors, the Securities and Exchange Commission of Pakistan (SECP) is reportedly offering substantial incentives to those looking to acquire stakes in PIA. These measures are designed to ensure a smooth transition during the privatization process, providing necessary support to potential investors, the ARY report added.

In October 2024, Finance Minister Muhammad Aurangzeb stated that the government plans to complete PIA’s privatisation, along with that of three power distribution companies, by the end of the year.

Initially set to conclude by October 1, the privatisation process was delayed to October 31 due to low bidder interest, ongoing legal challenges, issues with the ageing fleet, and civil aviation concerns.