ISLAMABAD – The federal government has confirmed that all 6,700 current employees of Pakistan International Airlines (PIA) will be retained as part of the ongoing privatization process, with a golden handshake potentially offered by the incoming buyer.
Officials from the Privatization Commission shared these updates during a briefing to the National Assembly Standing Committee on Privatization on Monday, stating that the government is committed to protecting jobs and ensuring the best possible terms for employees during and after the airline’s transition to private ownership.
🛫 Privatization Timeline & Bidders
The government aims to finalize PIA’s privatization between October and December 2025, and four groups have been pre-qualified:
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Lucky Cement Consortium
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Arif Habib Group
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Air Blue
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Fauji Fertilizer Company
Starting Tuesday, these bidders will gain access to PIA’s virtual data room to begin due diligence — a process the government hopes to complete within 60 days, faster than the originally planned 60–90 days.
🧾 Employee Terms & Protections
Key highlights regarding employee treatment:
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No layoffs planned: All existing staff will be retained.
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18-month protection window: Employees will remain on payroll for at least 18 months post-privatization.
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Golden handshake: A voluntary exit incentive may be offered by the new buyer.
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No reduction in terms: Salaries, benefits, and other terms of employment will remain intact, and could potentially improve.
Officials emphasized that “maximum possible protection” will be offered and that any reduction in facilities or job roles is off the table.
🛩️ Future Prospects & Routes
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PIA’s fleet is currently operating 19 aircraft, with plans to expand to 40 post-privatization.
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The reopening of European routes has boosted the airline’s profile, making it more attractive to investors.
💬 Political Oversight & Concerns
Committee Chairperson Dr. Farooq Sattar called on the Privatization Commission to consult with the chief ministers of Punjab and KP, given the national importance of PIA.
However, some lawmakers raised concerns about the transparency of financial reporting. One member questioned why PIA reported a Rs. 4.6 billion loss, despite prior government claims of improvement. PIA’s CEO acknowledged the airline’s financial position has strengthened but did not share specific figures.
Notably, a previous bidder offering Rs. 10 billion is not among the current finalists.
🔍 What’s Next?
With political oversight tightening and due diligence beginning, all eyes are on how the privatization unfolds in the coming months — especially regarding employee treatment, fleet expansion, and foreign investment potential.
