Islamabad, Feb 7: The Board of Directors of Pakistan International Airlines (PIA) has approved a long-overdue salary increase for employees, marking the first pay adjustment in four years. This decision comes as a relief for the airline’s workforce, helping them cope with rising inflation.
A PIA spokesperson emphasized that the salary hike is crucial for employee retention, particularly as the airline’s workforce has dropped below 7,000 and continues to shrink. By improving compensation, PIA aims to maintain experienced staff and ensure operational efficiency amid ongoing challenges.
Meanwhile, the federal government remains committed to privatizing PIA as part of its broader economic reform strategy under the $7 billion International Monetary Fund (IMF) program. The privatization plan includes selling a 51% to 100% stake in the national flag carrier to potential investors.
In November, the government rejected a bid from Blue World Consortium, which offered Rs. 10 billion for a 60% stake—far below the Privatization Commission’s set minimum price of Rs. 85 billion. Following the unsuccessful bid, authorities have now shifted focus to a second phase of the privatization process.
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The Privatization Commission has announced that it is gearing up for another auction, with a mix of returning and new bidders expected to participate. The government remains optimistic that this round will attract competitive offers, ensuring a successful transition for PIA’s future under private management.
With these developments, the airline’s employees and stakeholders are closely watching the privatization process, hoping for a resolution that secures PIA’s long-term sustainability while benefiting both workers and investors.
