ISLAMABAD: National Assembly panel recommended that government mandate the of Pakistan International Airlines to retain employees for at least five years after its privatisation. Airline has incurred losses of Rs 500 billion over past eight years.

However, this recommendation by National Assembly Standing Committee on Privatisation contradicts feedback from prospective buyers. During pre-bid conferences over last 10 days, buyers have expressed reluctance to retain employees, with at least two bidders stating that they would prefer to sign new contracts with employees. Some bidders also indicated that all employee liabilities up to bid date should be borne by government.

Deputy Prime Minister Ishaq Dar chaired meeting to finalise government's response to bidders' concerns regarding draft share purchase agreement, subscription agreement and shareholder agreement.

Standing committee, chaired by Farooq Sattar recommended that PIA employees be retained for at least five years and that airline's union be involved in process. Secretary of Privatisation Ministry Jawad Paul warned that if government insists on long-term employee retention, cost would be reflected in bid price.