PIA will resume flights to the US after a 7-year suspension, a significant development for the country

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Following a seven-year ban, Pakistan International Airlines (PIA) will resume flights to the United States, which is a major milestone for the nation’s aviation industry, according to ARY News.

To resolve outstanding financial commitments, the US Federal Aviation Administration (FAA) and the parties have signed a Memorandum of Understanding (MoU).

Payments to the FAA are anticipated to be received soon, allowing the FAA delegation to go to Pakistan by February or March, according to DG CAA Nadir Shafi Dar.

The move has raised the likelihood that Pakistan would be reclassified to ‘Category One’ status with the FAA, enabling the resumption of direct flights to the United States, according to ARY News.
Notably, PIA had six weekly flights between Pakistan and the US, including two to Chicago and four to New York, until its flights to the US were halted in 2017.

According to sources cited by ARY News on Saturday, the Pakistani government is also stepping up its attempts to privatize PIA via government-to-government (G2G) agreements, with a deadline of December 31.
The article claims that there may be a chance for foreign investment since Abu Dhabi and Qatar have both shown a great interest in PIA’s privatization. To finalize the parameters of the agreement, active negotiations are taking on with both nations.

According to reports, the Securities and Exchange Commission of Pakistan (SECP) is providing significant incentives to investors who want to purchase shares in PIA in an effort to draw them in. According to the ARY study, these steps are intended to facilitate a seamless transition throughout the privatization process and provide prospective investors the assistance they need.

According to Finance Minister Muhammad Aurangzeb’s October 2024 statement, the government intends to finish privatizing PIA and three power distribution businesses by the year’s end.

Due to limited bidder interest, persistent legal battles, problems with the aging fleet, and civil aviation concerns, the privatization process, which was originally scheduled to end by October 1, was postponed until October 31.