While facing a monthly loss of Rs. 12 billion and an accumulated total loss exceeding Rs. 740 billion, Pakistan International Airlines (PIA) management is giving a bonus to its employees in recognition of their positive performance from April to September 2023.
The bonus, effective from October 1, 2023, is calculated based on the 2022 bonus payment and ranges from five to ten percent of the salary as of March 31, 2023.
However, certain eligibility criteria apply, excluding employees given notice to leave before October 2023, recent recruits, those promoted or receiving a salary increase between April 1, 2022, and September 30, 2023, as well as individuals facing disciplinary actions.
This decision has sparked criticism as PIA continues to grapple with operational challenges, including frequent fuel outages. With a monthly income of Rs. 22 billion and expenses reaching Rs. 34 billion, the airline’s total losses have soared to Rs. 740 billion.
The airline has borrowed Rs. 260 billion from commercial banks under government guarantees, owes Rs. 1.25 billion in taxes to the Federal Board of Revenue, and struggles to meet over Rs. 1 billion in monthly payments to the Civil Aviation.
Finance ministry sources have highlighted the financial crisis facing the national airline, questioning the appropriateness of granting bonuses amid such challenges.
Caretaker Federal Minister for Privatization Fawad Hasan disclosed that 15 out of PIA’s 34 aircraft are grounded, leaving the airline with only 19 operational aircraft. In light of these circumstances, the decision to allocate bonuses to employees has drawn criticism, raising concerns about the airline’s financial management.
Source: Pro Pakistani