Pakistan International Airlines (PIA), grappling with financial difficulties, is set to deliberate on a potential salary raise for its employees during a meeting of its HR Committee today (Friday). Sources report that the meeting, scheduled in Karachi, will evaluate a detailed proposal for the pay increase.
If approved by the HR Committee, the proposal will proceed to the PIA Board of Directors for final endorsement.
This marks a significant development, as PIA employees have not received a salary increment since 2015.
Meanwhile, PIA’s privatization efforts remain a critical focus. The government’s earlier attempt to privatize the airline faltered when it received a single bid of Rs10 billion, which was subsequently rejected. The matter has since been referred back to the Cabinet for further deliberation.
Federal Minister for Privatization Aleem Khan previously attributed the failed privatization attempt to the Federal Board of Revenue’s (FBR) refusal to waive the Goods and Services Tax (GST) on new aircraft purchases, a recommendation crucial to the privatization process.
Speaking to the Senate Standing Committee on Privatization, Khan revealed that the privatization process began on November 28, 2023, before his tenure as minister, with PIA’s losses totaling Rs830 billion at that time. He emphasized that once initiated, the privatization process could not be reversed.
As discussions progress, the outcomes of the salary review and privatization efforts are expected to significantly influence the future of the struggling national carrier.
