Pakistan International Airlines (PIA) has declared a significant reduction in international ticket prices following the International Monetary Fund’s (IMF) approval to waive the Federal Excise Duty (FED).
Sources from PIA’s local chapter informed APP that the FED waiver was approved at the request of the Pakistani government, which aims to ease financial burdens on travellers. As a result, passengers flying to the USA could save up to Rs350,000. Ticket prices for Africa and the Middle East are expected to drop by as much as Rs105,000, while flights to Europe, Australia, New Zealand, and the Far East might see reductions up to Rs210,000.
It is important to note that the FED waiver is exclusive to international flights. As confirmed by PC officials, domestic flights within Pakistan will still incur the usual duties. This partial relief comes after the 2024 federal budget imposed an additional Rs56 billion in FED on air travel.
Additional Tax Exemptions and Aviation Sector Advances
In conjunction with the FED waiver, the IMF has also granted an 18% sales tax exemption for purchasing or leasing new aircraft, further supporting the aviation sector’s growth and modernization.
Read: Pakistan International Airlines to Resume Direct Flights to Paris in January 2025
The aviation sector in Pakistan is poised for significant developments. Preparations are underway for the resumption of PIA flights to the United States., following a Memorandum of Understanding (MoU) signed with the U.S. Federal Aviation Administration (FAA), as disclosed by DG CAA Nadir Shafi Dar. This agreement aims to settle outstanding financial obligations, facilitating an FAA delegation’s anticipated visit to Pakistan by February or March.
There is optimism that Pakistan will regain ‘Category One’ status with the FAA, which would enable the resumption of direct flights to the U.S. PIA’s flights to the U.S. were suspended in 2017. The airline has previously operated six weekly flights, including New York and Chicago routes.
