Tag: bonuses

  • IMF raises questions over PM Shehbaz giving huge bonuses to staff

    IMF raises questions over PM Shehbaz giving huge bonuses to staff

    The International Monetary Fund (IMF) has reportedly raised questions on Pakistan’s Prime Minister’s decision to grant huge financial awards to the officers of his office, as reported by Express Tribune.

    The supplementary grants amounted to Rs. 24 billion, which the PM approved, amidst a severe economic crisis.

    The global lending body IMF took up the issue, asking about the Economic Coordination Committee (ECC) of the Cabinet decisions to approve awards for the PM’s office staff.

    The Express Tribune reported that the IMF questioned the source of funding for these awards.

    IMF’s Resident Representative Esther Perez did not respond to a request for a comment on the matter even after two weeks, according to the news outlet.

    However, despite IMF questioning, Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb have not reversed this decision.

  • ’Four salary bonus’, PM Shehbaz is reportedly rewarding his staff

    ’Four salary bonus’, PM Shehbaz is reportedly rewarding his staff

    A few days before leaving for Washington to ask the International Monetary Fund (IMF) for a new bailout package to avoid a default, Prime Minister Shehbaz Sharif approved a proposal to give up to four salaries in bonuses to his staff. He also asked his finance minister to concur with it.

    The PM is being faced with criticism that the policy to hand out such big awards to bureaucrats amidst such deeply serious economic conditions is against an austerity drive.

    Also, analysts are asking whether this move would bode well for the new IMF bailout package as the IMF discourages bloated government expenditures.

    The rewards were approved for staff officers because of ‘their extraordinary efforts in the completion of tasks’, according to the Express Tribune.

    More importantly, the cost for these bonuses will be paid to these government servants by taking loans from banks at a 23 per cent interest rate.

  • Loss-making PIA announced bonuses for employees on their “good performance”

    Loss-making PIA announced bonuses for employees on their “good performance”

    Pakistan International Airlines (PIA), one of the biggest money-losing entities in the country, has ironically announced that they will pay their employees an increment for “good performance”.

    As reported by The News, PIA’s management announced the bonus for the performance of the employees over the last six months, from April to September. The bonus will be implemented by October 2023. The amount that was decided is tantamount to the bonus issued in 2022.

    PIA is going through a monthly loss of Rs 12 billion and a total loss of over Rs 740 billion but the bonus that was announced is Rs 915 million. The increment in salaries will be 5-10 percent paid on March 31, 2023. The employees who are told to leave on or before October were recruited recently or got a promotion or salary increase in these six months are not eligible for it.

    The airline has announced this expenditure while it is grappling with issues of fuel outages and financial loss. According to Caretaker Federal Minister for Privatization Fawad Hasan Fawad, 15 out of 34 PIA aircraft are grounded, the airline is operating with only 19 aircraft and some of them are also not fully operational. The gap between income (22 billion) and expense(34 billion) which is increasing with time.

    Amidst the ongoing debate of privatization, PIA has taken a loan of Rs260 billion from commercial banks on a government guarantee. It is not paying tax of Rs1.25 billion to the FBR and has not been able to pay more than Rs1 billion per month to Civil Aviation.