PIA announces reduction in airfare

LAHORE: The Pakistan International Airlines (PIA) Sunday announced a reduction in its international tickets’ prices, ARY News reported.

The International Monetary Fund (IMF) approved a waiver of the Federal Excise Duty (FED) on the PIA international tickets, paving the way for significant fare reduction.

PIA local chapter sources told APP that the waiver was granted at the request of the Pakistani government and could result in substantial savings for travelers.

Passengers flying to the USA might save up to Rs350,000, while those traveling to Africa and the Middle East could see ticket prices drop by up to Rs105,000. Similarly, flights to Europe, Australia, New Zealand, and the Far East may offer savings of up to Rs210,000.

However, the FED waiver applies exclusively to international flights, with domestic air travel still subject to the duty, as confirmed by PC officials. The 2024 federal budget had previously imposed an additional Rs56 billion in FED on air travel, which this move partially alleviates.

In addition to the FED waiver, the IMF has also approved an 18 per cent sales tax exemption for the purchase or lease of new aircraft.

Earlier, it was revealed that Pakistan’s aviation sector is set to make a significant advance with preparations underway for the resumption of Pakistan International Airlines (PIA) flights to the United States (U.S).

According to reports, Pakistan signed a Memorandum of Understanding (MoU) with the U.S. Federal Aviation Administration (FAA), as stated by DG CAA, to settle pending financial obligations.

As per DG CAA Nadir Shafi Dar, payments to the FAA are expected to be made shortly, paving the way for the FAA’s delegation to visit Pakistan by February or March.

There is hope that Pakistan will be reclassified to the ‘Category One’ status with the FAA, allowing direct flights to the U.S. to resume.

The suspension of Pakistan International Airline’s (PIA) flights to the U.S. began in 2017, when six flights per week were operated between Pakistan and the U.S., including four to New York and two to Chicago.