Despite towering losses of Rs12 billion per month and an aggregate loss exceeding Rs740 billion, Pakistan International Airlines (PIA) has announced employees’ annual increment bonus for their commendable performance.
PIA’s management has highlighted the positive financial outcomes from April to September as the rationale behind this decision. Beginning October 1, 2023, the bonus will be paid, with the amount determined by referencing the bonus granted in 2022.
According to PIA’s official communication, eligible employees can expect an increment ranging from 5% to 10% of their March 31, 2023 salary. However, those who’ve signalled intentions to depart the airline by October 2023 or new hires and promotees between April 1, 2022, and September 30, 2023, will miss out. Furthermore, any staff currently under disciplinary scrutiny are excluded from this reward.
PIA’s Financial Struggles
What has raised eyebrows is the timing of this announcement, considering PIA’s ongoing operational challenges, including recurrent fuel shortages. With a monthly revenue of Rs22 billion overshadowed by expenses hitting Rs34 billion, PIA’s loss has ballooned to Rs740 billion.
Financial insiders reveal Caretaker Finance Minister Dr Shamshad Akhtar’s deep concerns about PIA’s fiscal distress.
The airline has borrowed Rs260 billion from commercial lenders, backed by government assurance. Outstanding debts include a non-payment of Rs1.25 billion in taxes to the FBR and monthly arrears of over Rs1 billion to the Civil Aviation Authority (CAA).
Fawad Hasan Fawad, the Caretaker Federal Minister for Privatisation, disclosed that out of PIA’s 34 aircraft, 15 are non-operational, with some of the remaining fleet not entirely functional. Given these dire straits, many question the prudence behind PIA’s bonus gesture, deeming it a potential subject of ridicule within national circles.
