PIA Offers Staff Bonuses Despite Rs 740 Billion Loss

Pakistan International Airlines (PIA) is confronting severe financial challenges, with a monthly loss of Rs. 12 billion and an accumulated total loss exceeding Rs. 740 billion. Despite these difficulties, the airline’s management has chosen to provide bonuses to employees in recognition of their performance from April to September 2023. This decision has faced criticism due to PIA’s financial strain and operational issues.

The bonus program, initiated on October 1, 2023, is calculated based on the 2022 bonus payment and ranges from five to ten percent of employees’ salaries as of March 31, 2023. However, certain groups, including employees with termination notices, recent hires, those promoted or given a salary increase between April 1, 2022, and September 30, 2023, and individuals under disciplinary actions, are excluded from this incentive.

Critics have expressed concerns about PIA’s financial management, especially as the airline grapples with operational challenges, including a significant number of grounded aircraft. Caretaker Federal Minister for Privatization Fawad Hasan pointed out that out of PIA’s 34 aircraft, only 19 are operational, highlighting the strain on the airline.

Granting bonuses in the midst of PIA’s precarious financial situation has raised questions about the airline’s stability and management, prompting a closer examination of its ability to effectively navigate ongoing financial difficulties.

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