Pakistan International Airlines (PIA) has decided to cut 3,500 people through the Voluntary Separation Scheme (VSS).
Ministry of Aviation sources have determined that officials have completed the "Employee Severance Plan" which will be submitted to the Economic Coordination Committee (ECC) for approval.
When informing the ECC, the Aviation Department referred to a meeting on December 30, 2017, which decided that the Pakistani government would pay the premium for PIACL debts directly to lenders for five years.
Read Also: PIA to save cost by sending employees on leave
In this regard, the finance department had allocated Rs. $ 24.5 billion in the 2019-2020 budget to pay premiums on GoP-guaranteed loans.
It was also reported that there was a shortage of $ 3.2 billion in budgetary appropriations for PIACL, earmarked for premium payments on loans with a GoP guarantee.
The department also filed with the Cabinet Economic Committee for an additional $ 3.2 billion grant. Loans in loans guaranteed to repay the GoP.
According to sources, the Aviation Department also referred to a summary submitted to the ECC on 9 July 2019 on surcharge and VSS. The ECC had postponed a decision until the end of the Hajj operations in 2019.
It also mentioned the PIA's plans to offer its 3,500 employees a golden handshake at an estimated cost of Rs. 9.7 billion
Further details will be determined in consultation with a lawyer, who is expected to be delivered on June 30, 2020. When the plan is completed, the ECC is submitted for approval.
