Pakistan okays Bangladesh’s Biman to begin Dhaka-Karachi flights as ties warm up

A Boeing 787-8 Dreamliner aircraft, operated by Biman Bangladesh Airlines, performs in a flying display at the Farnborough Airshow, south west of London, on July 18, 2018. (AFP/File)
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Updated 02 January 2026
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Pakistan okays Bangladesh’s Biman to begin Dhaka-Karachi flights as ties warm up

  • Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war
  • Ties between both nations have warmed up since ouster of PM Sheikh Hasina, viewed as an India ally

ISLAMABAD: Pakistan has granted Bangladesh’s national carrier, Biman Bangladesh Airlines, permission to begin flight operations between Dhaka and Karachi, the Pakistan Civil Aviation Authority (PCAA) said on Friday, amid strengthening ties between the two countries. 

Pakistan and Bangladesh used to be one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.

Ties between Pakistan and Bangladesh have warmed up since the fall of former Bangladeshi prime minister Sheikh Hasina, who was widely viewed as close to India and critical of Pakistan, following a student-led uprising in August 2024.

Islamabad has attempted to forge closer ties with Dhaka in recent months after the two South Asian nations began sea trade in late 2024, which were followed by efforts to expand government-to-government commerce.

“Pakistan has granted Biman, the national flag carrier of Bangladesh, initial permission for three months up to March 26 to operate flights between Dhaka and Karachi,” a PCAA spokesperson told Arab News, adding that the duration could be extended. 

The approval marks a significant step in restoring direct air connectivity between the two nations.

In Nov. last year, the now-privatized Pakistan International Airlines (PIA) said it had signed a cargo agreement with Biman, aimed at streamlining air freight operations and boosting bilateral trade. 

A PIA spokesperson said the agreement was part of PIA’s strategy to expand its cargo business and offer more competitive services to customers. 

Pakistan has stepped up efforts to rebuild relations with Bangladesh as ties between Dhaka and New Delhi remain strained over India’s decision to grant asylum to Hasina after she fled the country. 

In Feb. 2025, a cargo vessel sailed directly from Pakistan to Bangladesh for the first time in decades and successfully unloaded containers, port officials said.

The two countries signed six agreements last August, covering areas such as visa exemptions for diplomatic and official passport holders, trade cooperation, media collaboration and cultural exchanges, officials said.

Separately, Islamabad allowed Britain’s Norse Atlantic to operate flights to the South Asian country, the Pakistani defense minister announced late Thursday. The airline will operate direct flights from London, Manchester and Birmingham to the Pakistani capital of Islamabad.

“The increase in operations of international airlines to Pakistan will promote a competitive environment leading to world class service and balance in fares,” Defense Minister Khawaja Asif said on X.
 


Pakistani stocks hit new high on upbeat data, major earnings announcement due this week

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Pakistani stocks hit new high on upbeat data, major earnings announcement due this week

  • The benchmark KSE-100 index gained 2,653.87 points, or 1.45 percent, to close at 182,408 points
  • United Bank Limited emerges as largest listed company, with capitalization crossing $4.6 billion

ISLAMABAD: The Pakistan Stock Exchange (PSX) on Tuesday continued its bullish run and crossed the 185,000-point mark for the first time ever, analysts said, with investors opting for equities rather than fixed-income assets amid prevailing positive sentiment.

The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) gained 2,653.87 points, or 1.45 percent, to close at 185,062.10 points, up from the previous close of 182,408.23 points.

Ahsan Mehanti of Arif Habib Commodities attributed the bullish run to major earnings announcements due this week as well as upbeat data for cement, fertilizer and oil sales in Dec.

“Surging global equities and government deliberations over privatization of SOEs (state-owned enterprises) played a catalyst role in record close at PSX,” he said.

During Tuesday’s session, United Bank Limited (UBL) emerged as the largest listed company on the PSX, with its market capitalization crossing Rs1.29 trillion ($4.6 billion) and overtaking the Oil and Gas Development Company Limited (OGDCL), according to Arif Habib Limited brokerage firm.

Pakistan’s stock market has marked a strong start to 2026 as broad-based institutional buying has lifted major sectors and bolstered investor confidence at the beginning of the year. The market has gained more than 10,000 points since the start of the new year.

On Monday, Najeeb Ahmed Khan Warsi, chief business officer at Al-Habib Capital Market Private Limited, said the surge was driven by “liquidity influx, positive listed company results and supportive government policies.”