UK lifts ban on Pakistani airlines after five years

KARACHI (Reuters) -Britain has lifted a five-year ban on Pakistani airlines, allowing them to apply to resume UK flights just as Islamabad steps up efforts to privatise its national carrier, Pakistan International Airlines.

The ban was imposed in 2020, days after Pakistan launched an investigation into the validity of pilot licences issued in the country following a PIA plane crash that killed 97 people.

The British High Commission said on Wednesday the lifting of the ban followed safety improvements by Pakistani authorities. The decision comes just months after the European Union took similar steps.

While several private Pakistani airlines operate domestically and on regional routes, primarily to the Middle East, PIA has historically been the only carrier to operate long-haul flights to Britain and the European Union.

PIA had previously estimated an annual revenue loss of around 40 billion rupees ($144 million) due to the ban. The airline has long considered UK routes, including London, Manchester, and Birmingham, among its most profitable, and holds sought-after landing slots at London's Heathrow Airport that could become active again.

Earlier this month, Pakistan approved four groups to bid for a 51-100% stake in PIA. Final bids are expected later this year.

The government is hoping that recent reforms, which led to the airline's first operating profit in 21 years – will help attract buyers under a broader IMF-backed privatisation push.

Pakistani Defence Minister Khawaja Muhammad Asif told a press conference on Wednesday that the resumption of all routes would improve PIA's value ahead of the privatisation. He also said there were plans to restart flights to New York.

(Reporting by Charlotte Greenfield. Writing and additional reporting by Ariba Shahid in Karachi. Editing by Mark Potter)