In a move to address the growing concerns of its employees, the Board of Directors of Pakistan International Airlines (PIA) has granted principle approval for cadre-wise salary adjustments. This decision, made on Friday, was in direct response to the rising inflation that has increasingly affected the financial well-being of PIA staff.
A statement from a PIA spokesperson emphasised that the airline’s employees had not seen a salary increase in the last four years. The official noted that inflation had taken a severe toll on the living conditions of staff members, making the salary hike essential for maintaining morale and productivity.
“The last salary increase for PIA employees was made four years ago, and since then, the impact of rising inflation has become evident in the daily lives of our personnel,” the spokesperson explained.
The spokesperson further added that the adjustment is also a strategic move to help retain experienced personnel within the organisation. PIA’s workforce has dwindled significantly, with the number of employees now falling below 7,000. This decline has put additional pressure on the airline, already struggling with its financial situation.
In a broader context, Pakistan’s cash-strapped government has been seeking ways to offload a 51-100% stake in PIA as part of its efforts to raise much-needed funds and implement reforms in state-owned enterprises. This is part of a larger strategy under a $7 billion International Monetary Fund (IMF) program aimed at stabilising Pakistan’s economy.
However, efforts to privatise PIA have faced challenges. In November of last year, the government rejected the only bid for a 60% stake in the airline. The Blue World Consortium, which submitted the bid, offered Rs10 billion, well below the Privatisation Commission’s minimum price of Rs85 billion. As a result, the government has now decided to initiate a fresh attempt at the sale.
The Privatisation Commission (PC) has stated that it is “fully prepared” for this second attempt, with hopes of attracting multiple bidders, including several who had expressed interest in the first round. Despite the setbacks, the government is determined to continue its efforts to reduce the fiscal burden of state-owned entities like PIA.
