Islamabad, Dec 18: Pakistan International Airlines (PIA) is set to make international travel more affordable as ticket prices are expected to drop significantly. This follows the International Monetary Fund’s (IMF) approval to waive the Federal Excise Duty (FED) on PIA’s international flights, a decision made at the request of the Pakistani government.
With this waiver, ticket prices for flights to the USA could decrease by up to Rs350,000. Travelers to Africa and the Middle East may see reductions of up to Rs105,000, while fares to Europe, Australia, New Zealand, and the Far East might be reduced by as much as Rs210,000. The FED waiver, however, applies exclusively to international flights, with domestic flights continuing to include the duty.
This reduction not only provides financial relief to passengers but also supports PIA’s recovery efforts. The IMF has also permitted Pakistan to exempt the 18% sales tax on the purchase or lease of new aircraft, reducing operational costs for the airline.
Additionally, Rs46 billion from PIA’s negative equity will be transferred to a holding company, enhancing the airline’s appeal to potential investors.
The government remains committed to privatising PIA, with new regulations facilitating a competitive bidding process for a 60% stake in the airline. These measures aim to strengthen PIA’s financial position and streamline its operations as part of broader economic reforms.
