The airline’s board of directors approved the cadre-wise salary adjustments on Friday, citing rising inflation as the primary reason.

A PIA spokesperson stated that the last salary increase was four years ago and that the current inflation rate has significantly impacted employees’ living standards. The airline hopes the increase will help retain experienced staff, as its total employee count has fallen below 7,000 and continues to decrease rapidly.

This decision comes as the Pakistani government continues its efforts to privatize PIA. A previous attempt to sell a majority stake failed in November when the sole bid was significantly below the government’s asking price.

Despite this setback, the Privatization Commission has expressed readiness for a second attempt, with several interested parties reportedly involved.