ISLAMABAD – Despite facing significant financial challenges, Pakistan International Airlines (PIA) has decided to grant its employees an increment bonus for their ‘commendable’ performance.
The move comes despite PIA reporting a monthly loss of Rs12 billion and an accumulated loss exceeding Rs740 billion, surprising many closely observing the performance of the national carrier.
The management’s decision to allocate the bonus, intended to recognize employees’ contributions to positive financial outcomes from April to September this year, has drawn attention and raised eyebrows from all quarters.
The bonus, ranging from 5% to 10% of the March 31, 2023 salary, will be implemented from October 1, 2023 but certain conditions would have to be met.
Employees who have tendered their resignation on or before October 2023, those recently hired or promoted between April 1, 2022, and Sept 30, 2023, as well as those facing disciplinary proceedings, will not be eligible for the bonus, The News reported.
As per the details, the amount that PIA employees will be paid has been decided on the basis of a bonus issued in 2022.
The management of the national carrier is drawing flak for the bonus as the carrier was recently on the brink of grounding 15 planes bringing down the number of operational aircraft further.
PIA’s challenges worsened after it was reported that the supply of spare parts to the carrier could be suspended over cash flow problems.
There have been demands for privatizing the national carrier due to its economic nonviability. Former Aviation Minister Khawaja Saad Rafique also stressed the importance of privatizing the carrier or else it would have to shut operations.
In the final days of the PDM regime, it was also decided to privatize loss-making Pakistan International Airlines during a meeting of the Cabinet Committee on Privatization chaired by then Finance Minister Ishaq Dar.
The committee “after deliberation decided to include Pakistan International Airlines Co. Ltd. in the list of active privatization projects of the ongoing privatization program, following an amendment in the law by the Parliament,” a finance ministry statement had said.
