• Pakistan International Airlines’ Plan to Make International Travel Affordable.
• PIA tickets may get cheaper after the FED waiver.
• The FED waiver will apply only to international tickets, with domestic flights still including the excise duty.

Pakistan International Airlines (PIA) is gearing up to make international travel more affordable. Ticket prices are expected to decrease substantially following the International Monetary Fund’s (IMF) agreement to waive the Federal Excise Duty (FED) on PIA’s international flights, a move initiated at the Pakistani government’s request.

With this decision, travelers flying to the USA may see ticket prices drop by as much as Rs350,000. Passengers heading to Africa and the Middle East could benefit from a reduction of up to Rs105,000, while fares to Europe, Australia, New Zealand, and the Far East might be cut by Rs210,000. However, the FED waiver will apply only to international tickets; domestic flights will still include the excise duty.

The reduction in ticket prices not only eases the financial burden on travelers but also supports PIA’s recovery efforts. The IMF has further allowed Pakistan to waive the 18% sales tax on the purchase or lease of new aircraft, lowering operational costs for the airline.

Additionally, Rs46 billion from PIA’s negative equity is set to be transferred to a holding company, which is expected to make the airline more attractive to potential investors.

The government remains committed to its plans for PIA’s privatisation, introducing regulations to enable bidders to compete for a 60% stake in the airline. These reforms aim to improve the airline’s finances and streamline operations, aligning with broader economic restructuring efforts.

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