The privatization of Pakistan International Airlines (PIA) has hit another roadblock as disagreements persist between labor unions and the PIA Holding Company over the medical and pension benefits of retired employees.
According to sources, a high-level meeting was held in Islamabad attended by representatives from the Holding Company, Privatization Commission, State Life Insurance Corporation, and retired employees’ associations. The participants discussed post-privatization arrangements for ensuring the welfare of former staff members.
However, the talks remained inconclusive as both sides failed to agree on the provision of medical facilities. The Holding Company proposed that healthcare for retired employees be managed through an insurance provider, but labor representatives demanded a written assurance detailing the coverage and benefits.
Sources added that the issue of pension continuity was also discussed, though no final decision was reached. The Holding Company requested more time to finalize a comprehensive framework before the next meeting.
Due to the unresolved issues, the Privatization Commission extended the bid submission deadline from October 30 to November 17, 2025.
Industry analysts say that the standoff underscores the human dimension of privatization — balancing economic reforms with the protection of long-serving employees’ rights. Retired staff have urged the government to ensure that their medical and pension entitlements are safeguarded as part of any privatization agreement.
