Loss-Making PIA to ‘Consider’ Salary Raise for Employees After 8-Year Gap

Pakistan International Airlines (PIA), a state-owned enterprise struggling with massive financial losses, is set to consider a salary hike for its employees during an HR Committee meeting scheduled today. According to sources, the committee will review a detailed proposal for the pay increase, which, if approved, will be forwarded to the Board of Directors for final authorization.

PIA employees have not received any salary increments since 2015, despite the airline’s continued operational challenges.

Privatization Efforts Falter
The government has been pursuing the privatization of PIA to mitigate its mounting losses, which have reached a staggering Rs830 billion. However, the first privatization attempt failed, receiving only a single bid of Rs10 billion, which was subsequently rejected. The matter has now been referred back to the federal cabinet for further deliberation.

Federal Minister for Privatization, Aleem Khan, attributed the failure to the Federal Board of Revenue (FBR) during a Senate Standing Committee meeting chaired by Senator Talal Chaudhry in Islamabad. Khan criticized the FBR for not accommodating the removal of GST on the purchase of new aircraft, a move he claimed was critical for attracting investors.

Privatization Challenges
Aleem Khan revealed that the privatization process, initiated on November 28, 2023, had been set in motion before he assumed office as privatization minister. He noted that the process cannot be stopped once started, but emphasized the need for more favorable policies to attract competitive bids.

Despite the ongoing privatization hurdles, today’s meeting in Karachi signals PIA’s attempt to address internal employee concerns while navigating external financial and operational pressures.