PIA Announces Reduction in International Airfare Following IMF’s Tax Exemption Approval

Pakistan International Airlines (PIA) has announced a significant reduction in the fares for international flights, following the approval of a Federal Excise Duty (FED) exemption by the International Monetary Fund (IMF). This move is expected to bring substantial financial relief to passengers traveling abroad.

According to local sources from PIA, the tax relief was granted at the request of the Pakistani government, which will directly benefit travelers with reduced airfare costs.

### Details of the Fare Reduction:
– Passengers traveling to **the United States** could save up to **PKR 350,000** on their tickets.
– Tickets for destinations in **Africa** and the **Middle East** could become cheaper by up to **PKR 105,000**.
– Travelers heading to **Europe**, **Australia**, **New Zealand**, and **the Far East** can save up to **PKR 210,000**.

However, this reduction will only apply to international flights, while the FED on domestic flights remains unchanged. The reduction in international airfare comes as a partial countermeasure to the additional **PKR 56 billion** FED imposed on air travel in the 2024 federal budget.

In a further boost to Pakistan’s aviation sector, the IMF also approved a **18% sales tax exemption** on the purchase or leasing of new aircraft, which is expected to help modernize the country’s fleet.

Additionally, reports indicate that Pakistan and the **Federal Aviation Administration (FAA)** of the United States have signed a Memorandum of Understanding (MoU). According to DG CAA, **Nadir Shafi Dar**, Pakistan is set to re-enter **Category 1** after resolving outstanding financial matters with the FAA, which will pave the way for the resumption of direct flights to the United States. PIA had suspended its U.S. operations in 2017, when it used to operate six weekly flights to New York and Chicago. The resumption of these flights is now expected in the near future.