Voluntary separation scheme approved by committee
A plan has been prepared to keep PIA afloat by firing thousands of employees who have become a burden on the national airline’s resources.
The Economic Coordination Committee approved on Monday approved a voluntary separation scheme.
Firing 7,500 employees will cost the airline approximately Rs13 billion.
The airline currently has 15,000 employees. The ECC says a minimum of 3,500 employees must be let go. The most employees the airline can let go is 7,500.
If the airline decides to let 7,500 employees go, it will cost between Rs12 billion and Rs13 billion but will save Rs4 billion a year.
Adviser to the Prime Minister on Finance Abdul Hafeez Sheikh chaired the meeting. Four technical grants were also approved for the defence and interior ministries.
A committee was also formed to prepare for mobile SIMs and smart cards in the country. It will present a report in two months.