The Pakistan International Airlines (PIA) announced on Sunday a reduction in its international ticket prices.

The International Monetary Fund approved a waiver of the federal excise duty (FED) on the PIA international tickets, paving the way for significant fare reduction.

Passengers flying to the USA might save up to Rs350,000 while those travelling to Africa and the Middle East could see ticket prices drop by up to Rs105,000, the state-run news agency reported while citing sources. Flights to Europe, Australia, New Zealand, and the Far East may offer savings of up to Rs210,000.

The FED waiver applies 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.