The decision was taken during a meeting between IG Sindh Wajid Ali Durrani and Sindh Home Minister Manzoor Wassan, said sources.
IG Sindh presented a report to the Home Minister on the situation in Karachi after which Manzoor Wassan ordered the ban to be lifted.
The Home Minister also directed police to increase its patrolling in all sensitive areas of the city.
The Sindh government had earlier imposed a ban on pillion riding due to poor law and order in the city including a wave of target killings and following controversial statements by Sindh Minister Zulfiqar Mirza.