KARACHI: The Pakistan International Airlines (PIA) Holding Company has extended a fresh offer to retired employees amid ongoing privatization talks, though discussions over medical benefits have reached a stalemate, delaying the privatization process, ARY News reported on Monday.
According to sources, a high-level meeting was held in Islamabad, attended by representatives from the PIA Holding Company, the Privatization Commission, State Life Insurance Corporation, and retired employees’ associations. The agenda focused on resolving long-standing concerns related to post-privatization pensions and medical facilities for former employees.
Deadlock Over Medical Facilities
The Holding Company proposed that medical coverage for retirees be outsourced to State Life Insurance, aiming to ensure structured healthcare benefits after privatization. However, retired employees’ representatives rejected the verbal proposal, demanding a formal written plan outlining the terms, coverage details, and implementation mechanisms.
Due to the lack of consensus, the privatization bidding date — originally set for October 30 — has now been postponed to November 17, sources confirmed.
Pension Revisions and Further Consultations
In the same meeting, discussions also centered on the pension framework for retired employees. Officials from the Holding Company requested additional time to prepare and present a revised pension plan in the upcoming session, promising a more sustainable structure aligned with post-privatization operations.
Meanwhile, concerns persist among labor unions over limited representation in the consultation process.
Unions Express Reservations
Major PIA unions, including People’s Unity, Air League, and SASA, voiced strong objections to not being invited to the meeting.
Shamim Akmal, President of the PML-N–backed Air League, sent a letter to PIA management, criticizing the inclusion of non-representative organizations and warning that any changes to retirees’ medical benefits would be unacceptable.
He emphasized that altering or reducing medical coverage could undermine the rights and welfare of thousands of retired employees who served the national airline for decades.
Privatization Progress
The PIA privatization process, now in its final stages, aims to restructure the airline under the newly formed PIA Holding Company, which manages assets and liabilities ahead of the sale. Despite delays, the Privatization Commission remains confident that bidding will proceed next month, following consensus with stakeholders.
