PIA approves salary increase for employees

The Board of Directors of Pakistan International Airlines (PIA) approved a cadre-wise salary increase for its employees during a recent meeting on Friday.

According to a statement from a PIA spokesperson, the salary increase aims to address the growing financial pressures faced by staff, who have not seen a raise in four years.

The spokesperson also highlighted that the soaring inflation rates over the past few years have significantly impacted employees' financial well-being.

Additionally, PIA's workforce has fallen below 7,000 employees, with a continuing decline in numbers. The salary increase is seen as an essential step to improve employees' living conditions and help retain experienced staff within the organisation.

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Alongside these internal adjustments, PIA continues to face a severe financial crisis. As part of Pakistan's broader efforts to raise funds and reform state-owned enterprises, the government has been attempting to privatize a significant stake in the airline.

This privatisation is a key requirement under Pakistan's $7 billion loan agreement with the International Monetary Fund (IMF), which aims to stabilize the country's economy.

In November of the previous year, the only bid for a 60% stake in PIA, submitted by the Blue World Consortium, was rejected.

The consortium offered Rs 10 billion, which was far below the Privatization Commission’s minimum valuation of Rs 85 billion. Consequently, the government has decided to relaunch the sale process.

The Privatisation Commission (PC) has announced that it is “fully prepared” for a second attempt at selling PIA, with several new and returning bidders expressing interest in participating in the process.