Talks between the Pakistan International Airlines (PIA) Holding Company and retired employees have stalled as both sides failed to reach an agreement on medical benefits following privatization. According to an ARY News report, the dispute has delayed the ongoing privatization process of the national carrier.
A high-level meeting in Islamabad was attended by officials from the PIA Holding Company, the Privatization Commission, State Life Insurance, and representatives of retired staff. The discussions focused on post-privatization pension and healthcare arrangements for retired employees.
During the meeting, the PIA Holding Company proposed outsourcing medical benefits to State Life Insurance to streamline coverage. However, the retirees’ representatives declined to move forward without receiving a formal written proposal. This disagreement over medical benefits has led to the extension of the PIA privatization bidding deadline from October 30 to November 17.
Pension matters were also discussed in detail. The PIA Holding Company’s officials requested additional time to finalize and present a revised pension plan in the next meeting. The delay reflects ongoing challenges in balancing financial reforms with employee welfare concerns.
Meanwhile, major employee unions — People’s Unity, Air League, and SASA — have strongly criticized their exclusion from these negotiations. In a letter to PIA management, Shamim Akmal, president of the PML-N–aligned Air League, expressed dissatisfaction over the inclusion of what he described as “non-representative groups.” He warned that any attempt to alter retirees’ medical rights would be unacceptable and could endanger the well-being of former employees.
The stalemate highlights the complexity of the PIA privatization process, as the government seeks to modernize the airline while addressing long-standing employee concerns. Further talks are expected as both sides attempt to find a compromise on healthcare and pension benefits.
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