The Civil Aviation Authority on Wednesday cleared a safety audit conducted by the International Civil Aviation Organization.
The move will allow Pakistani airlines to operate flights to the US, UK and Europe.
Earlier this year, a UN aviation body had advised Pakistan to stop issuing any new pilot licences. This was a result of the PIA plane crash that killed 97 passengers.
An investigation into the crash found out that many PIA pilots possessed fake degrees.
The revelation prompted the European Union Aviation Safety Agency to take serious notice and discontinued TCO (Third Country Operator) Authorisation for Pakistani carriers.