7,000 Pakistan International Airlines employees not paid salaries due to company’s financial problems

Islamabad [Pakistan]: The employees of Pakistan International Airlines (PIA) have been affected due to the ongoing financial upheaval faced by the airlines which has left its 7,000 employees without salaries in November, The Express Tribune reported.

The airline’s CBA union president, Hidayatullah Khan, addressed the issue and alleged intentional salary delays by the PIA management.

Moreover, he blamed Pakistan’s caretaker government and attributed the recent fuel crisis faced by the airline to government actions.

He further accused deliberate actions of driving the national flag carrier into financial distress, according to The Express Tribune.

“Employees are being subjected to deliberate humiliation. Should salaries be delayed again next month, expect forceful protests from the union,” he stated.

The PIA spokesperson cited financial constraints as the reason behind delayed salaries.
Meanwhile, the spokesperson assured that all employees would receive their salaries in the coming days.

“Efforts are underway to secure funds through alternative channels for salary disbursements,” he said.
Earlier in October, the financially-crippled airline was forced to cancel numerous domestic and international flights due to limited fuel supply from Pakistan State Oil (PSO), inconveniencing thousands of passengers, reported The Express Tribune.

The national flag carrier PIA has been criticised for inefficiency and has faced dwindling funds amidst the government’s battle with a balance of payments crisis arising from immense debt repayments.
According to recent reports, the PIA’s liabilities are Pakistani Rupee (PKR) 743 billion (approximately USD 2.5 billion), surpassing its total assets by five times.

Moreover, on October 14, PIA sought an additional loan of over PKR 7 billion from banks due to concerns about potential disruptions, partially or completely, as reported by The Express Tribune.

Later, PIA in a letter to the Aviation Division, requested an immediate loan of over Rs 7 billion from banks, with the Pakistan government guaranteeing an option for the airline to secure a loan of Rs 7.5 billion, The Express Tribune reported.