PIA Privatization Bidders Seek Employee Cuts

PIA Privatization Bidders Seek Employee Cuts

Preparations for the bidding process have been finalized at a private hotel in the capital.

Of the six potential bidders, only the Blue World City consortium has submitted an advance payment, confirmed by sources from the Privatization Commission.

Both the bid submission and opening for Pakistan International Airline’s purchase are set to occur on the same day, as per aviation sources.

The privatization process will adhere strictly to the regulatory framework and guidelines, ensuring full compliance with legal requirements, the sources added.

As the government proceeds with the PIA privatization, new conditions from potential buyers have emerged related to the airline’s employees.

PIA privatization: Bidders demand quick action against employees

During a Senate Privatisation Committee meeting chaired by Senator Talal Chaudhry, it was revealed that companies interested in acquiring PIA are requesting significant changes.

Key among the new demands is the immediate dismissal of all the employees, alongside the acquisition of 76 percent of PIA’s shares, with the government responsible for clearing tax payments.

The Privatization Commission sought to negotiate terms that would protect employees from layoffs for at least two to three years.

However, the bidders have reportedly refused to commit to this, expressing reluctance to retain employees or cover pension obligations.

The privatization process, now set for October 31, has drawn criticism for the lack of a clear plan to safeguard employees.