Pakistan International Airlines (PIA) employees will not face layoffs over the next 12 months, according to renowned investor and businessman Arif Habib. This assurance comes amid years of financial turmoil and uncertainty among staff.
Also Read: Pakistan Sells 75% of PIA to Arif Habib Consortium for Rs135 Billion
The announcement arrives as the national carrier struggles with persistent losses, mounting debts, and operational inefficiencies. Analysts and employees have closely watched these developments with concern.
Root Causes of PIA’s Financial Struggles
In an exclusive interview, Arif Habib explained that PIA suffered mainly due to growing debt and high interest payments. At one point, the airline owed approximately PKR 800 billion, much of it guaranteed by the government.
The airline’s financial position became unsustainable because of heavy borrowing and interest obligations, he said. The first privatization attempt failed due to economic instability and management issues.
Habib added that several recent economic changes allowed the current privatization to succeed. Falling interest rates, a stronger Pakistani rupee, and stabilizing international oil prices created a more favorable environment.
Fleet Expansion and Operational Plans
Currently, PIA operates 34 aircraft, but only 17 fly regularly. Habib revealed plans to expand the operational fleet to 38 planes to increase route capacity and improve service reliability.
He emphasized that the airline would manage current financial losses over the next year without affecting employee jobs. We will promote hardworking and qualified staff based on merit, he said.
Revamping Cargo Operations
PIA will also revamp its cargo system. Habib outlined a focused strategy to increase cargo revenues, which could provide a critical boost to overall earnings.
At present, military fertilizer companies, the Arif Habib Group, and Fatima Fertilizer hold 25% of PIA’s shares. Other consortium members hold the remaining shares, and the airline can include additional partners in the future.
Financial Injection and Safety Commitment
To stabilize operations and improve efficiency, Habib allocated PKR 125 billion for PIA. He intends to use the funds to purchase new aircraft engines, repay debts, and cover operational expenses.
He also stressed that the airline will maintain strict safety standards. We will not compromise passenger or staff safety. Our goal is to make PIA profitable within a year, he said.
Private Sector Role and Governance
Habib criticized government involvement in commercial enterprises, arguing that private businesses manage operations more efficiently. He urged the government to focus on policy-making and regulatory oversight.
National institutions can succeed if professionals handle business operations while the government ensures clear policy guidance, he remarked.
Outlook for PIA
With targeted investments, fleet modernization, cargo strategy improvements, and merit-based HR management, PIA could achieve a turnaround. Challenges remain, especially from global fuel price fluctuations and competition from regional carriers.
However, employees, stakeholders, and travelers may find cautious optimism in Habib’s plan. Over the next year, PIA will balance restructuring, operational efficiency, and staff morale while working to regain its reputation as Pakistan’s flagship airline.
