The Economic Coordination Committee (ECC) has approved, in principle, a voluntary separation scheme (VSS) to lay off a maximum of 7,500 Pakistan International Airlines (PIA) employees to keep the airline afloat.
The decision was made during an ECC session on Monday, chaired by Advisor to Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Sheikh.
After finalizing a self-retirement scheme for its staff, Pakistan International Airlines Corporation Limited (PIA) and the Aviation Division had forwarded it to ECC for approval.
PIA had sought allocation of Rs. 12.871 billion to award golden handshake to at least 3,500 employees and at most 7,500 employees through the VSS.
After thorough deliberation, the committee approved the summary in principle but did not ratify the amount. The committee has instructed the Aviation Division to make an offer to PIA staff to determine how many of them are willing to avail of the offer. The allocation will be made accordingly.
The ECC also approved four separate Technical Supplementary Grants (TSGs) for the Ministry of Defence and Interior Ministry for various projects.
As per sources, the ECC approved Rs. 26.9 billion for the second phase of fencing along the Pakistan-Iran border on Defense Ministry’s request.
Rs. 6.2 billion were approved for the recruiting cost of Special Security Division (North) of Pakistan Army, while another Rs. 5 billion were set aside for Internal Security Duty Allowance.