Important update for PIA employees after privatisation

ISLAMABAD: The Pakistan International Airlines (PIA) Board of Governors has proposed to retire the employees, who have four years to retire in case of privatization of the institution, ARY News reported.

According to the sources, the PIA Board of Governors has also given a green signal to the government to privatise the institution.

The new board of directors of the national airline held a four-hour-long consultative meeting on the issues pertaining to privatisation. In the meeting proposals and suggestions regarding the future of employees were considered.

The sources privy to the development said that in the meeting, the employees whose term is left for four years were suggested to retire while consultation was also held on the voluntary retirement scheme.

Earlier on Tuesday, the federal cabinet approved an 11-member Board of Directors (BoD) of the Pakistan International Airlines holding company as the government expedites the PIA privatisation process

Former State Bank of Pakistan Governor Tariq Bajwa’s name was approved as the chairman of the BoD which will include as many as seven independent directors and four government officials as members of the board.

The PIA holding company has also been registered with the NCB after which all of the national flag carrier’s debts and assets will be moved to the holding company.

Reports had said that the Securities and Exchange Commission of Pakistan (SECP) regulations made it mandatory to obtain approval from the board for decisions regarding the PIA.

Separately, in a significant move aimed at restructuring Pakistan International Airlines (PIA) ahead of its privatization, the federal government is planning to create two separate entities within the airline framework.

Sources close to the development revealed the federal government has announced plans to create two separate entities of national flag carrier – will be known as PIA Aviation and PIA Holding Companies – ahead of the privatization of the airline.

Sources revealed that the federal government intends to clear all outstanding debts owed by PIA before proceeding with the privatisation process.