Overstaffing at Pakistan International Airlines (PIA) causes concern among bidders
As Pakistan moves forward with the
privatization of Pakistan International Airlines (PIA), potential buyers are
making significant demands, particularly regarding the airline’s workforce, as
revealed during a Senate Privatization Committee meeting chaired by Senator
Talal Chaudhry.
Companies interested in acquiring
PIA are pushing for drastic measures, including the dismissal of 76% of the
airline’s employees. Additionally, they seek to acquire 76% of PIA's shares,
while the government would be responsible for settling outstanding tax
liabilities.
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bidders reject preconditions for investment
Despite ongoing negotiations, the
Privatization Commission has attempted to secure terms protecting employees
from layoffs for at least two to three years. However, the bidders remain firm
in their stance, refusing to commit to retaining employees or taking on pension
liabilities.
The privatization process, now delayed to October 31, has faced criticism for lacking a concrete plan to safeguard the workforce. Pakistan’s Finance Minister Muhammad Aurangzeb recently reaffirmed the government’s commitment to concluding PIA's privatization by the end of the year, despite challenges like low bidder interest, legal disputes, and an ageing fleet.
Source: ARY
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