Financial strain hits PIA employees hard

Delayed salaries heighten uncertainty among national carrier's workforce

KARACHI:

 The Pakistan International Airlines (PIA), grappling with financial turmoil for months, has left its 7,000-strong workforce without salaries for November. This situation has amplified the unease among employees of the national flag carrier.

Addressing the issue, Hidayatullah Khan, the airline’s CBA union president, alleged intentional salary delays by the PIA management. He pointed fingers at the caretaker government, attributing the recent fuel crisis faced by the airline to government actions.

Khan further accused deliberate actions driving the organization into financial distress.

"Employees are being subjected to deliberate humiliation. Should salaries be delayed again next month, expect forceful protests from the union," Khan asserted.

Confirming the salary delay, a PIA spokesperson cited financial constraints as the reason. “Efforts are underway to secure funds through alternative channels for salary disbursements.” The spokesperson assured that all employees would receive their salaries within the coming days.

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In October, the financially-strained airline was compelled to cancel numerous domestic and international flights due to limited fuel supply from Pakistan State Oil (PSO), inconveniencing thousands of passengers.

State-owned PIA, long criticized for inefficiency, faces dwindling funds amidst the government’s battle with a balance of payments crisis arising from immense debt repayments. Recent reports revealed the PIA's liabilities to be Rs743 billion (approximately $2.5 billion), surpassing its total assets by five times.

Highlighting its financial woes, The Express Tribune reported on October 14 that PIA sought an additional loan of over Rs7 billion from banks. This was due to concerns about potential disruptions, partially or completely, in flight operations due to severe financial constraints.

In a letter to the Aviation Division, PIA requested an immediate loan of over Rs7 billion from banks, with the government of Pakistan guaranteeing an option for the airline to secure a loan of Rs7.5 billion.