Story: PIA EU ban lifted amid ongoing privatization bid; Author: Junaid Khan
PIA ticket may get cheaper after waiver of the FED tax.
Pakistan International Airlines (PIA) ticket prices are likely to drop after the IMF approved waiver of the Federal Excise Duty (FED) on international flights.
According to the reports, passengers could save up to Rs. 350,000 (PKR) on flights to the USA, Rs. 210,000 to Europe and Australia, and Rs. 105,000 to the Middle East and Africa.
The waiver excludes domestic flights. Additionally, the IMF has waived an 18% sales tax on aircraft purchases or leases and allowed the transfer of Rs. 46 billion in negative equity to a holding company, aiming to improve PIA’s financial standing and attract investors as privatization efforts continue.
Earlier in November, EASA lifted ban on PIA, that was going on since 2020.
The Pakistan international airlines (PIA) which has famous slogan “Great People to Fly With” is being sold by the Pakistani government due its mounting losses.
The EU safety agency lifted the ban on Pakistan national airline:
The big news for PIA came just on Friday, November 29th, the EU safety agency lifted the ban on Pakistan's national airline after four years.
According to a report published by Reuters, the European Union Aviation Safety Agency has lifted its ban on PIA from operating in the bloc, it said on Friday.
According to the report, EASA suspended PIA's authorization to operate in the EU in June 2020 over concerns regarding the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards.
The suspension came days after Pakistan launched an investigation into the validity of pilots' licences issued in the country following a PIA plane crash that killed 97 people.
“EASA has now re-established sufficient confidence in the PCAA oversight capabilities,” an EASA spokesperson said in a statement emailed to Reuters.
The ban was costing PIA nearly 40 billion Pakistani rupees ($144 million) in revenue annually, according to government records presented in parliament.
The airline is running in loss for a long time now, the airline has liabilities of more than $2.8 billion. The airline also has accumulated losses of $2.55 billion as of June last year, according to some reports online.
PIA was one of the top profitable company in Pakistan at one point.
But due to years of improper administration and series of events, the airline has failed and now being privatized at staggering losses.
Pakistan approved plans to sell PIA airline earlier this year:
The government of Pakistan owns 86% of Pakistan International Airlines Corporation Limited (PIACL), while private shareholders own the remaining 14%.
Brief history PIA:
PIA was one of the most successful and modern airline at one point in the aviation history, with technological advancements, great training and flying route connecting west to China, and other Asian countries it was a key player.
It helped the Emirates airline of the United Arab Emirates to establish in its early days. Emirates has now become one of the top carrier around the world.
According to a report, the government of Pakistan initiated the bidding process by qualifying six business groups, with 85 billion Pakistani rupees as its starting bid.
The first and only bid came from an Islamabad centred, real estate company, Blue World City, with only 10 billion Pakistani rupees ($36 million) for a 60% stake in the airline.
It was rejected, and the bidding plan was sent back to the cabinet for reconsideration. Reports suggests that now the government considering selling PIA to a foreign party, names like Qatar and Abu Dhabi has surfaced so far.
The downfall began much earlier, but constant losses began to occur from 2005 with staggering losses. In 2023 PIA reported Rs 75 billion loss, total liabilities of the airline exceed Rs 825 billion and total assets are valued at Rs 161 billion, according to a report.
Some reports suggest PIA has only 32 aircraft, with only 16-19 still operational, this includes Boeing 777, 737, and Airbus A320, 300, 310, ATR 42/72, ATR 72, ATR 42 and some older model aircraft. Average fleet age is around 17 years.
Potential comeback:
Many airlines go bankrupt and come back stronger and profitable as seen in the past, PIA too could make a same comeback to the business, if correct administration and enough cash flow gets in.
In recent examples from last 25 years of aviation history, airlines that went through bankruptcy and came back profit making, includes big US airlines like American Airlines, United Airlines, and Delta and other major US airlines.
Just a few days ago, one of the cheap flights carrier Spirit Airlines filed for the bankruptcy in the US, the governing body confidently stated that the company will make a good comeback with stronger profit making ability.
The future for PIA might be bright as the latest EU ban lift came, this alone would lift some burden as the ban was costing PIA nearly 40 billion Pakistani rupees ($144 million) in revenue annually.
The entry of gulf countries being considered as potential shareholder of the age-old carrier looks promising, due to the fact that gulf airlines like Emirates, Qatar Airways, have been profitable since their respective beginning, reflects positive approach.
Why contribute: To be advertising free, and for quality content.
Write us to place your advertisement OR Write us about the article:
More in travel
World's top rivers | longest river | world rivers | top rivers | river size | amazon river size | longest river in Asia | mississippi river | yellow river.
2025-04-11
One-bedroom flat in Ajman monthly rent | ajman real estate | Ajman one Phase 2 | Aqaar Developer | apartment for sale in ajman
2025-08-02
Typical Pakistani food | Best restaurants Karachi, Pakistan | kolachi restaurant | alvigha food | Coconut Grove | Foods Inn Karachi | Xanders restaurant karachi
2025-08-07
Damac Properties | Portfolio of Damac worldwide | Damac history | Damac Hills two | Safa Gate | Violet 4 | Lagoons | Damac apartment prices, Upcoming projects.
2025-03-07
Pakistan international airlines being sold | EASA lifts ban from PIA.
2024-11-29
baku city | baku city centre | baku tourism | baku azerbaijan | boulevard baku | about baku | baku capital of azerbaijan | Baku city center
2024-03-17
Ras Al Khaimah | UAE real estate | residential projects Ras Al Khaimah | ras-al-khaimah real estate | residential projects uae
2024-12-07
Average cost of living in India's top 10 cities | top expensive cities India | cost of living in India
2024-12-02
Glasgow Subway Stations (Clockwise Order – Outer Circle) | Glasgow Subway | Glasgow subway station | How old is glasgow subway?
2024-08-18
Places to visit in Karachi | places in Karachi | Karachi places | food street Karachi | Karachi places to visit | Clifton area destinations, Karachi Pakistan.
2025-08-16
India became country with largest population on earth, surpassed China in 2023.
2024-05-03
Top 10 most expensive cities in India to live in. | Mumbai living cost | room rent in Jaipur | Average rents in top 10 cities in India.
2025-05-01
City walk dubai | dubai tourist spot | best places in dubai | the walk dubai | meraas dubai city walk | the green planet city walk dubai | best walk in dubai.
2024-09-23
Saudi Arabia the line | Saudi Arabia the line city...
2024-12-24
Ain Dubai reopening | Ain Dubai Enhancement work closure | Ain Dubai status
2024-10-30
Travel insurance for jersey Channel Islands | what is travel insurance? | flight insurance | trip insurance | Cost of Travel insurance | do I need travel insura
2025-04-27
Dubai Eye | World tallest observation wheel | Ain Dubai | Dubai tourist destination | Dubai top destinations.
2025-07-22
Spirit Airlines files for bankruptcy | Spirit Airlines | cheap tickets airline service US | US airlines bankruptcy history brief
2024-11-18
Traditional gujarati thali | Gujarati Thali | gujarati food | famous gujarati food | gujarati snacks names | gujarati food name | famous gujarati sweets
2023-05-26
Suggested Stories For You; Based on current story
Eid date India | Eid date 2025 | eid ul fitr date | Eid date Pakistan | Eid 2025 date.
2025-03-16
islamicHazrat Baba Farid Ganj-e-Shakar Pakpattan urs date 2026 would celebrated on Friday, June 19, 2026.
Hazrat Baba Farid Ganj-e-shakar Urs date Pakistan on June 19, 2026 | Baba Shaykh Fariduddin Ganj-e-Shakar | fariduddin ganjshakar رضي الله عنه
2025-09-21
islamicPlaces to visit in Karachi, top 7 Places in Karachi You Need to Visit.
Places to visit in Karachi | places in Karachi | Karachi places | food street Karachi | Karachi places to visit | Clifton area destinations, Karachi Pakistan.
2025-08-16
travelBest restaurants in Karachi | 5 Restaurants You'll Love in Karachi.
Typical Pakistani food | Best restaurants Karachi, Pakistan | kolachi restaurant | alvigha food | Coconut Grove | Foods Inn Karachi | Xanders restaurant karachi
2025-08-07
travelshabe barat | Shab-e Barat 2025 | islamic shab e barat | about shab e barat | shabe barat in India, Pakistan.
2025-01-31
islamic