Pakistan International Airlines (PIA) faces formidable financial adversity, grappling with a monthly loss of Rs. 12 billion and an accumulated total loss exceeding Rs. 740 billion. Despite these challenges, the airline’s management has chosen to allocate bonuses to its employees as a form of recognition for their performance during April to September 2023. This move has sparked criticism due to the company’s financial strain and operational difficulties.
The bonus scheme, initiated from October 1, 2023, is calculated based on the 2022 bonus payment and ranges from five to ten percent of employees’ salaries as of March 31, 2023. However, certain groups, such as employees facing termination notices, recent hires, those promoted or receiving a salary increase between April 1, 2022, and September 30, 2023, and individuals under disciplinary actions, are excluded from this incentive.
Critics have voiced concerns over PIA’s financial management, particularly as the airline grapples with extensive operational challenges, including grounded aircraft. Caretaker Federal Minister for Privatization Fawad Hasan highlighted that out of PIA’s 34 aircraft, only 19 are operational, shedding light on the strain faced by the airline.
The decision to grant bonuses amidst PIA’s precarious financial state has raised doubts about the airline’s stability and management, prompting a closer examination of its ability to navigate through the ongoing financial hardships effectively.
