Salaries not paid to 7,000 PIA employees due to financial
constraints
The financial difficulties faced by Pakistan International
Airlines (PIA) have taken a toll on its 7,000 employees, who have not received
their November salaries, intensifying concerns among the workforce of the
national flag carrier.
Hidayatullah Khan, the CBA union president of the airline, alleged
that the intentional delay in salaries is orchestrated by PIA management. He
pointed fingers at the caretaker government, linking the recent fuel crisis
experienced by the airline to government actions and accusing deliberate
measures leading the organization into financial distress.
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Khan warned of potential forceful protests from the union if
salaries are delayed again next month, emphasizing that employees are facing
intentional humiliation.
Confirming the salary delay, a PIA spokesperson attributed it to
financial constraints and assured that efforts are being made to secure funds
through alternative channels for timely salary disbursements. The spokesperson
pledged that all employees would receive their salaries in the coming days.
The financially-strained airline faced challenges in October when
it had to cancel numerous domestic and international flights due to limited
fuel supply from Pakistan State Oil (PSO), causing inconvenience to thousands
of passengers.
PSO’s
refusal to supply fuel forces PIA to cancel 14 flights
PIA, a state-owned entity criticized for inefficiency, is
grappling with diminishing funds amid the government's struggle with a balance
of payments crisis resulting from substantial debt repayments. Recent reports
revealed that PIA's liabilities amount to Rs743 billion (approximately $2.5
billion), surpassing its total assets by five times.
In an effort to address its financial woes, PIA sought an
additional loan of over Rs7 billion from banks in October. This request was
prompted by concerns about potential disruptions, either partial or complete,
in flight operations due to severe financial constraints. In a letter to the
Aviation Division, PIA urgently requested a loan of over Rs7 billion from
banks, with the government of Pakistan guaranteeing an option for the airline
to secure a loan of Rs7.5 billion.
Source: Express Tribune