The government has approved the reduction of Federal Excise Duty (FED) on business class international airline tickets.
Officials said the decision aims to reduce travel costs, facilitate international connectivity, and support the growth of Pakistan’s aviation industry.
| Region | Current FED Rate | Proposed FED Rate |
|---|---|---|
| North, Central, and South America | PKR 350,000 | PKR 50,000 |
| Middle East and Africa | PKR 105,000 | PKR 25,000 |
| Europe | PKR 210,000 | PKR 40,000 |
| Far East & Australia | PKR 210,000 | PKR 40,000 |
The reduction in FED is expected to lower fares for passengers traveling on business-class international routes.
Industry stakeholders have welcomed the move, saying it will make air travel more competitive and encourage greater business and tourism-related travel.
The measure is also expected to improve the overall passenger experience and strengthen the country’s aviation sector.
It must be noted that the initial version of this news was based on the Budget 2026-27 Speech. The latest version is based on FBR’s Briefing.
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