The federal government has approved Rs4.4 billion to clear pending pension and medical dues of retired employees of Pakistan International Airlines (PIA), providing relief to hundreds of former staff. The decision was taken during a meeting of the Economic Coordination Committee (ECC) chaired by Finance Minister Muhammad Aurangzeb.

 

The allocation is part of a broader request submitted by the Ministry of Defense, which had sought around Rs6 billion to address liabilities of the PIA Holding Company following the airline’s privatization. Out of the total requested amount, the ECC approved funding specifically for retirees’ medical reimbursements and pension payments.

Officials said the move aims to ease financial pressure on former employees who have been awaiting payments while also ensuring a smoother transition after structural changes in the national carrier.

In addition to this, the committee approved Rs 455 million for salary payments to employees of the Precision Engineering Complex, which has been separated from PIA and placed under the Ministry of Defense.

The decision highlights ongoing efforts by the government to settle outstanding liabilities of PIA amid broader restructuring and privatization reforms.