The Board of Directors of Pakistan International Airlines (PIA) has given principle approval for cadre-wise salary adjustments for its employees, marking the first salary increase in four years. The decision, announced on Friday, comes in response to the rising inflation that has significantly impacted employees’ living conditions.

According to a statement from the PIA spokesperson, the salary adjustment aims to address the financial challenges faced by employees due to inflation. “The last salary increase for PIA employees was made four years ago, after which the rising inflation rate has severely affected their living conditions,” the spokesperson said.

The adjustment is also intended to help retain experienced personnel within the organization. The spokesperson noted that the total number of PIA employees has fallen below 7,000 and continues to decline rapidly.

The salary adjustment comes as cash-strapped Pakistan continues efforts to privatize the debt-ridden national carrier. The government is seeking to offload a 51-100% stake in PIA as part of its broader plan to reform state-owned enterprises under the $7 billion IMF program.

In November 2024, the government rejected the sole bid for a 60% stake in PIA submitted by the Blue World Consortium, which offered Rs10 billion—far below the Privatization Commission’s minimum price of Rs85 billion. As a result, the government announced plans to restart the privatization process.

The Privatization Commission (PC) recently stated that it is “fully prepared” for a second attempt at PIA’s sell-off, with “several returning bidders and parties participating in the process.” The renewed effort reflects the government’s commitment to addressing PIA’s financial challenges and securing its future through privatization.