No PIA employee will be laid off for one year, says Arif Habib

ISLAMABAD: In a major relief for employees of Pakistan International Airlines (PIA), renowned businessman, investor and the new owner of the airline Arif Habib has announced that no employee of the national carrier will be laid off for at least one year.

Speaking in an interview, Arif Habib said that PIA’s long-standing financial losses were primarily caused by mounting debt and heavy interest payments. He revealed that at one stage, the airline’s debt had reached approximately Rs 800 billion, which continued to grow under government guarantees.

He explained that PIA’s earlier privatisation attempt failed due to weak management systems and unfavourable economic conditions. However, the current privatisation process succeeded owing to improved economic indicators, including reduced interest rates, stabilisation of the rupee, and better control over oil prices. He said that, these factors, combined with an improved management structure, made the recent bid successful.

Arif Habib disclosed that currently only 17 out of PIA’s 34 aircraft are operational, but there are plans to expand the fleet to 38 aircraft in the future. He added that most of PIA’s assets have been shifted to a holding company, while the airline’s existing deficit will be absorbed for one year.

He categorically said that no PIA employee will be dismissed during this period. Instead, competent and hardworking employees will be promoted strictly on merit. He also noted that the business plan includes a dedicated strategy to improve the airline’s cargo operations, which is expected to significantly enhance revenue.

According to Arif Habib, the ownership structure of PIA includes 25 per cent shares each held by Fauji Fertilizer, Arif Habib Group, and Fatima Fertilizer, while the remaining 25 per cent stake belongs to other members of the consortium. He also indicated that there is room to induct another strategic partner in the future.

He said that while PIA could have been managed with Rs 70 billion, a total of Rs 125 billion has been allocated to ensure improvement and stability. This amount will be utilised for acquiring new engines, clearing debts, and meeting operational expenses.

Focusing on safety as a key priority, Arif Habib said there would be no compromise on flight safety under the new management. On the basis of these reforms, he expressed confidence that PIA could be turned into a profitable organisation within a year.

He also revealed that PIA’s current liabilities stand at Rs 181 billion. Sharing his broader economic outlook, Arif Habib said that following aviation sector reforms, investment in the blue economy could be the next focus area.

Criticising the management of state-owned enterprises, he remarked that personal interests of officials are the main reason behind losses in government institutions. He stressed that the government’s role should be limited to policymaking, while business operations should be left to the private sector.