PIA International ticket prices to US and Europe to be slashed significantly after FED waiver
Passengers traveling on Pakistan International Airlines (PIA) are set to enjoy significant savings on international tickets after the International Monetary Fund (IMF) approved a waiver of the Federal Excise Duty (FED). The move is expected to make international travel more affordable for Pakistani passengers, with ticket prices to major destinations dropping by substantial amounts.
The waiver, requested by the Pakistani government, will drastically reduce ticket prices across several international routes:
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- USA: Passengers could save up to Rs350,000.
- Europe, Australia, New Zealand, and the Far East: Savings of up to Rs210,000 are anticipated.
- Africa and the Middle East: Ticket prices may drop by as much as Rs105,000.
These changes come as part of broader efforts to make PIA more competitive in the international travel market. However, the waiver is applicable exclusively to international flights, leaving domestic air travel prices unaffected.
It is also important to note that Pakistan is preparing to resume direct flights to the United States after a six-year hiatus. PIA’s direct flights to the US are expected to further boost ticket sales by offering convenience and competitive pricing. Travelers can now fly without the hassle of layovers, and with the FED waiver, ticket prices are likely to be significantly lower than before.
The FED waiver is part of a series of steps aimed at improving PIA’s financial position and attractiveness to investors. Key developments include:
- 18% Sales Tax Exemption: Approved for the purchase or lease of new aircraft, potentially reducing the cost of fleet expansion.
- Negative Equity Transfer: Rs46 billion in negative equity has been moved to a holding company, reducing operational burdens and making the airline more viable for privatization.
The government is also revising regulations to allow bidders to acquire a 60% stake in PIA as part of its privatization plan.
These pricing adjustments are expected to transform PIA’s competitiveness in the international market. With fare reductions and the planned resumption of direct US flights, PIA is positioning itself as an attractive option for travelers seeking affordable and convenient international travel.
The waiver also comes as a relief for passengers, partially offsetting the burden of the Rs56 billion FED imposed on air travel in the 2024 federal budget.
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The measures are designed to stabilize PIA, reduce operational costs, and make it more appealing to private investors. As Pakistan looks to revive its national carrier and restore confidence among international travelers, the focus on affordable pricing could mark a turning point in the airline’s history.
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