PIA to pay bonus to employees despite registering loss
KARACHI: Pakistan International Airlines (PIA), despite suffering from a monthly loss of Rs12 billion and a total loss of over Rs740 billion, has announced to pay its employees an increment bonus for their “good” performance.
According to a report by The News, PIA’s management announced the bonus to acknowledge the efforts of its employees for delivering positive financial results from April to September this year.
The management will apply the increment bonus from October 1, 2023, while the amount that they will be paid has been decided on the basis of a bonus issued in 2022.
The increment, as per PIA’s statement, will be 5% to 10% 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 recently recruited, and have received a promotion or a salary increase from April 1, 2022 to Sept 30, 2023, are also not eligible for the increment.
Meanwhile, 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 PIA has reached Rs740 billion.
Sources in the finance ministry said the Caretaker Finance Minister Dr Shamshad Akhtar recently cried about the national airline’s financial crisis.
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 Authority (CAA).
According to Caretaker Federal Minister for Privatization Fawad Hasan Fawad, out of 34 aircraft 15 are grounded 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.