Loss-making PIA to give bonus to its employees

KARACHI: The management of the Pakistan International Airline (PIA), suffering from a monthly loss of Rs12 billion, and a total loss of more than Rs740 billion, has announced an increment in bonus for its employees for showing ‘good’ performance.

The bonus has been announced in recognition of employees’ efforts for positive financial results from April to September 2023.

The increment bonus will be applicable from Oct 1, 2023. The amount has been decided on the basis of a bonus paid in 2022.

According to the PIA statement, the increment will be five to 10 per cent of the salary paid on March 31, 2023. Employees, who have given notice for leaving the company on or before October 2023 will not be eligible for the bonus.

Employees who have been recruited recently, got promotion or salary increase from April 1, 2022 to Sept 30, 2023, are also not eligible for the increment. Employees facing disciplinary cases will also not be eligible for the bonus.

It is surprising to note the national airline has announced the bonus at a time when it is finding it hard to maintain operations due to frequent fuel outages. 

The monthly income of the airline is Rs22 billion and its expenses are up to Rs34 billion, and the total loss of the PIA has reached Rs740 billion. 

Sources in the finance ministry said the caretaker finance minister recently cried about financial crisis of the national airline. 

The PIA has taken a loan of Rs260 billion from commercial banks on the government guarantee. It is not paying tax of Rs1.25 billion to the FBR and has not been able to pay more than Rs1 billion per month to the Civil Aviation. 

According to Caretaker Federal Minister for Privatization Fawad Hasan Fawad, the PIA 15 out of 34 aircraft are grounded, the airline is operating with only 19 aircraft and some of them are also not fully operational. In such a situation, the announcement of bonuses for employees seems to be making itself a laughing stock in the country.