Salary raise approved for PIA employees
In response to rising inflation and employee concerns, the Board of Directors of Pakistan International Airlines (PIA) has granted principle approval for cadre-wise salary adjustments. The decision, made on Friday, aims to alleviate financial hardships faced by PIA staff, who have not received a salary increase in four years.
A PIA spokesperson emphasized that soaring inflation has significantly impacted employees' living conditions, making the salary revision essential for maintaining morale and productivity.
“The last salary adjustment for PIA employees was four years ago, and since then, inflation has severely affected their daily lives,” the spokesperson stated.
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employees could finally receive salary raise after 8 years
The adjustment also serves as a retention strategy to curb workforce attrition. PIA’s staff strength has dropped below 7,000, adding further strain to the airline, which continues to grapple with financial difficulties.
Privatization Efforts Continue Amid Challenges
As part of broader economic reforms, the Pakistani government is actively seeking to privatize 51-100% of PIA under the $7 billion International Monetary Fund (IMF) program. The initiative is aimed at reducing the financial burden of state-owned enterprises and stabilizing the economy.
However, privatization efforts have faced setbacks. In November 2024, the government rejected the sole bid for a 60% stake in PIA, as the Blue World Consortium’s Rs10 billion offer fell far below the Privatization Commission’s minimum price of Rs85 billion.
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approves 25% raise in salaries of PIA employees
Following this unsuccessful attempt, the Privatization Commission (PC) has now launched a fresh bidding process, expressing confidence that this round will attract multiple investors, including those who had shown initial interest. Despite previous hurdles, the government remains committed to offloading PIA and easing the fiscal strain of loss-making public sector enterprises.
Source: Profit Pakistan