Government to ensure no PIA employee is sacked unduly after
privatization
The federal government has assured the National
Assembly Standing Committee on Privatization that the entire 6,700-strong
workforce of Pakistan International Airlines (PIA) will be retained during the
airline’s upcoming privatization. Efforts will be made to ensure maximum job
preservation, officials confirmed on Monday.
A golden handshake may also be offered by the
incoming buyer as part of the transition.
Privatization
Timeline and Bidders
PIA’s privatization is expected to conclude
between October and December 2025. Officials from the Privatization Commission
informed the committee that four entities have been pre-qualified for the
transaction:
·
Lucky Cement Consortium
·
Arif Habib Group
·
Air Blue
·
Fauji Fertilizer Company
Vetting of these bidders will begin on
Tuesday.
Secretary of the Privatization Commission,
Usman Akhtar Bajwa, stated that shortlisted bidders will gain access to PIA’s
virtual data room, where their queries about the process will be addressed. The
due diligence phase is expected to be completed within 60 days, an acceleration
from the original 60 to 90-day timeline.
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Employee
Protections and Fleet Expansion
The Commission has proposed a minimum 18-month
retention period for existing staff. There will be no reduction in current
employment terms and conditions, and some employee benefits may even be
enhanced, officials noted.
The committee has also instructed the
Privatization Commission to coordinate with the chief ministers of Punjab and
Khyber Pakhtunkhwa to ensure transparency and stakeholder involvement in the
privatization process.
Operational
Outlook
Committee Chairperson Farooq Sattar pointed
out that several of the pre-qualified groups have previously expressed interest
in acquiring the national carrier. Officials added that the recent reopening of
PIA’s Europe routes has improved the airline’s attractiveness to investors.
Post-privatization, PIA’s fleet is projected to grow from 19 to 40 aircraft.
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Financial
Questions Remain
Despite recent optimism, concerns were raised
about PIA’s financial performance. One committee member questioned why the
Ministry of Finance reported a Rs. 4.6 billion net loss for the airline last
year, despite earlier claims of a turnaround. PIA’s CEO responded by asserting
the airline’s finances have improved but did not provide further details.
It was also revealed that a group that
previously submitted a Rs. 10 billion bid is no longer among the current
pre-qualified contenders.
Source: Pro Pakistani