With a monthly loss of Rs. 12 billion and an overall deficit that exceeds Rs. 740 billion, Pakistan International Airlines (PIA) is dealing with severe financial hardship. Despite these difficulties, the airline’s management has decided to give bonuses to its staff as a way of appreciating their work from April to September 2023. Due to the company’s financial burden and operational issues, this decision has drawn criticism.
Starting on October 1, 2023, the bonus scheme will be implemented. It is based on the bonus payout from 2022 and ranges from five to ten percent of the employee’s salary as of March 31, 2023. However, several groups are not eligible for this incentive, including those who have received disciplinary actions pending against them, newly hired employees, those who received promotions or pay increases between April 1, 2022, and September 30, 2023, and those who are receiving termination letters.
Critics have expressed worries about PIA’s financial management, particularly in light of the airline’s significant operational difficulties, which include grounded planes. Fawad Hasan, the acting Federal Minister for Privatisation, emphasised that only 19 of PIA’s 34 aircraft are now in service, highlighting the airline’s difficulties.
A closer look at PIA’s capacity to successfully navigate through the ongoing financial difficulties has been prompted by the airline’s decision to award bonuses in the middle of its critical financial situation.
