Despite PIA suffering with monthly losses of Rs12 billion and a staggering total loss exceeding Rs740 billion, the airline has surprisingly declared an increment bonus for its employees in recognition of their “commendable” performance.
As reported by The News, PIA’s management has introduced this bonus to acknowledge the dedicated efforts of its workforce, which have contributed to favorable financial results from April to September this year.
This increment bonus will take effect from October 1, 2023, and the precise amount has been determined based on the bonus issued in 2022.
The statement from PIA outlines that the increment will range from 5% to 10% of the salaries as of March 31, 2023. Notably, employees who have submitted notices of resignation before October 2023 will not be eligible for this bonus.
Similarly, individuals who have been recently hired, received promotions, or had salary increases between April 1, 2022, and September 30, 2023, will also be excluded from this increment. Additionally, employees facing disciplinary issues will not qualify for the bonus.
This decision raises eyebrows, especially as the national airline grapples with maintaining operations due to frequent fuel shortages. PIA’s monthly revenue amounts to Rs22 billion, while its expenses reach up to Rs34 billion, culminating in a total loss of Rs740 billion.
Sources within the finance ministry have reported that Caretaker Finance Minister Dr. Shamshad Akhtar recently expressed concerns about the financial crisis faced by the national airline.
PIA has secured a Rs260 billion loan from commercial banks with government guarantees and has not been remitting Rs1.25 billion in taxes to the Federal Board of Revenue (FBR). Furthermore, it has been unable to pay over Rs1 billion per month to the Civil Aviation Authority (CAA).
According to Caretaker Federal Minister for Privatisation, Fawad Hasan Fawad, out of the 34 aircraft, 15 are grounded, and some are not fully operational. Given this challenging situation, the decision to grant bonuses to employees appears to be raising eyebrows and invites criticism in the country.
Via Geo News