Pakistan International Airlines (PIA) is preparing to significantly lower its international ticket prices, bringing relief to travelers. This decision follows a waiver of the Federal Excise Duty (FED) on international flights, granted by the International Monetary Fund (IMF) at the request of the Pakistani government.
The FED exemption is expected to make international travel more accessible. Ticket prices for flights to the USA may drop by as much as Rs350,000, while passengers flying to Europe, Australia, and the Far East could save up to Rs210,000.
Those traveling to Africa and the Middle East might see fares reduced by Rs105,000. However, domestic flights remain unaffected as the FED will still apply.
The changes are part of a broader plan to improve PIA’s financial health. The IMF has also approved the removal of an 18% sales tax on the acquisition or leasing of new aircraft, potentially reducing operational expenses for the airline.
In a parallel move, Rs46 billion from PIA’s negative equity is being transferred to a holding company to make the airline more attractive to investors. This initiative aligns with the government’s goal of privatizing the national carrier by offering a 60% stake to private bidders.
These steps are expected to strengthen PIA’s position in the aviation sector while making international travel more affordable for Pakistani citizens. Travelers can look forward to significant savings as PIA moves toward a more sustainable future.
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