Pakistani workers sign up for second jobs to pay for fuel and food

Driver Muhammad Rehman uses his mobile phone while sitting on his motorcycle in Islamabad, Pakistan on October 14, 2023. (AN Photo)
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Updated 16 October 2023
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Pakistani workers sign up for second jobs to pay for fuel and food

  • With September inflation rate of 31.4 percent driven by fuel and energy prices, millions of Pakistanis face cost of living crisis
  • Nearly 40 percent Pakistanis have slipped below the poverty line in last year, recent World Bank report says

ISLAMABAD: Muhammad Rehman has a full-time job, leaving home at 7am every morning and driving a staff pick and drop van till evening.

But recently, he said, it has not been enough to make ends meet, which is why he signed up with the ride-hailing service, Bykea, offering rides on his motorbike and making deliveries until well past midnight on some nights.

But even with two jobs, Rehman still falls short of what he needs to cover expenses for his family, including his three-year-old son.

“As you know with inflation, a person cannot afford [to live on one job] and that’s why we have to work two jobs,” Rehman told Arab News.

Rehman is not alone. 

With a September inflation rate of 31.4 percent mainly driven by fuel and energy prices, millions of Pakistanis face a cost-of-living crisis and are struggling to survive. Pakistan’s poverty rate has risen from 34.2 percent to 39.4 percent in the last one year, according to the World Bank and the country has the lowest per capita income in South Asia.

“We are three [adult] family members including my mother and wife… It is difficult to get by in this inflation,” Rehman said. “We would save up something when petrol was a bit cheap, but now petrol is costly and it is difficult [to save up].”

Petrol prices remain high even as the government on Monday cut the prices of petrol and diesel owing to the decreasing trend of petroleum prices in the international market. Electricity bills have also at a record high in recent months, fueling nationwide protests. 

To cover costs, Rehman said he drives a Bykea up to six hours a day after returning home around 7-8pm from his day job. 

“Obviously, we are human beings and get drained, but we have no option.”

There are many others facing a similar predicament.

Javed Masih works as a laborer with masons during the day and as a house cleaner in multiple Islamabad homes in the evening. The 49-year-old’s monthly expenses had jumped from Rs50,000 ($180) to Rs80,000 ( $288) in recent months, he said, prompting him to withdraw his children from a private school and enroll them in a public school to save money on fees, books and transportation.

“I have five family members to support, including three school-going children,” Masih said. “We are faced with a choice between our food and children’s education.”

Arshad Khan, a 33-year-old government employee in Islamabad, now also works as an electrician and plumber on the weekends.

“It is almost impossible to meet expenses with one job, so I have to push myself on the weekends to make some extra income to provide food and education for my children,” Khan told Arab News. 

“Nobody wants to work extra hours at the cost of their health and family time, but inflation has forced us to look for multiple streams of income.”

Economists expect double-digit inflation to continue in Pakistan, given a high interest rate and fluctuating energy prices in the global market. 

Pakistan lacks adequate resources to run its oil- and gas-powered plants and energy imports make up the majority of the country’s external payments as it faces an economic crisis with an acute balance of payments problem.

“It is a fact people are struggling to put food on the table with a significant increase in recent months in the prices of staple food, petroleum products and utility bills,” Dr. Abid Qaiyum Suleri, an executive director at the Islamabad-based Sustainable Development Policy Institute, told Arab News.

“These are testing times, but we should hope for the best and extend financial and moral support to those in need.”


Pakistan to open today televised bidding for privatization of loss-making flag carrier PIA

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Pakistan to open today televised bidding for privatization of loss-making flag carrier PIA

  • Pakistan plans to privatize 75 percent of the carrier, while retaining its name and branding
  • Three contenders remain in race to buy the airline after Fauji Fertilizer Company’s withdrawal

ISLAMABAD: Pakistan is set to hold a live broadcast bidding process today, Tuesday, for the privatization of the Pakistan International Airlines (PIA), officials said, with three consortiums contending to buy the loss-making national flag carrier.

The government prequalified four investor groups in July, but Fauji Fertilizer Company, part of a military-backed conglomerate, withdrew from the process recently.

The remaining contenders include two consortiums led by Lucky Cement and Arif Habib Corporation, and a private airline Airblue.

Pakistan aims to privatize 75 percent of the carrier, while retaining its name and branding, according to PM Shehbaz Sharif’s office. The decision marks Islamabad’s most aggressive push in decades to reform the debt-ridden airline, which has accumulated more than $2.8 billion in losses.

Speaking to Arab News, Muhammad Ali, adviser to the prime minister on privatization, said the exit of Fauji Fertilizer Company from the bidding process does not preclude future collaboration.

“We don’t know if Fauji [Fertilizer Company] will partner or not with the winning bidder. However, they have withdrawn from the race,” he said.

The sealed bids will be submitted by the bidders at 10:30am on Tuesday.

“Reference price for PIACL’s (Pakistan International Airlines Corporation Limited) bidding will only be approved by the Privatization Commission Board and the Cabinet Committee on Privatization after bids have been received,” the government said in a statement on Monday.

“The bids will be opened in a ceremony starting at 3:30pm [on Tuesday] in the presence of the bidders. The bids and the reference prices will be announced and the bidding will be concluded as per agreed terms.”

PIA’s sale is a central to Islamabad’s economic reform agenda under a $7 billion bailout agreed last year with the International Monetary Fund (IMF). Officials say the airline’s privatization is essential to halt recurring losses, revive international routes and ease pressure on the budget.

This is Pakistan’s third attempt at PIA privatization, following a failed 2024 auction that received only one bid of $35 million that was far below the government’s nearly $300 million asking price, according to Privatization Commission records. Islamabad is targeting $302 million in privatization proceeds this year.

“Privatization of PIA will avoid burden on exchequer, expand airline’s fleet, improve service quality, create employment opportunities, and help Pakistan’s aviation, tourism and GDP (gross domestic product) to grow,” Ali said.

Once considered among Asia’s leading airlines, PIA has accumulated more than $2.8 billion in losses. The airline has struggled with chronic mismanagement, political interference, overstaffing, mounting debt and operational issues that led to a 2020 ban on flights to the European Union, United Kingdom and the United States (US) after a pilot licensing scandal, further shrinking PIA revenues.

Pakistan’s Finance Adviser Khurram Schehzad said PIA used to be the region’s “best airline” in the 70s and 80s, adding that Pakistani diaspora in various countries wants their own airline to flourish again.

“Airlines help turnaround the economy, promote growth, investment and economic activity through multiple ways,” he said, noting, “We are a country of 250 million people, with a huge diaspora.”

Former finance minister Miftah Ismail believed the airline’s privatization would benefit consumers and taxpayers even if it did not materially move the macroeconomic needle.

“PIA’s privatization will have a positive impact on the aviation industry,” he told Arab News. “There will be greater competition and hopefully better service for consumers. It will also save the money people of Pakistan have to pay every year for PIA to keep going.”

Ismail noted the government had already transferred around Rs800 billion ($2.85 billion) of PIA’s liabilities onto the public balance sheet ahead of the sale.

“So, PIA has lost 800 billion rupees of people’s money. That money is gone forever and the consumers will have to pay, but at least further losses will be cut,” he said.

To a question, he said the process of privatization was “transparent” this time around but cautioned that broader privatization momentum remains limited only to state assets like power companies, oil exploration groups and gas distribution companies.

Islamabad has launched a five-year privatization plan covering 24 state entities between 2024 and 2029, including the Roosevelt Hotel in New York, three banks, power distribution companies, and the Postal Life Insurance Company, according to the Privatization Commission.

Aviation industry veterans say structural constraints under state ownership doomed repeated turnaround plans for PIA.

Speaking to Arab News, former PIA chief executive officer Musharraf Rasool Cyan pointed to “pervasive interference” and “rigid” public-sector rules for the failure of PIA.

“Due to interference by institutions like the judiciary and even parliament, the management cannot take market-aligned decisions,” he said, citing non-performance-based contracts, slow procurement rules, union pressures and corruption.

Cyan said PIA failed to adapt as competition intensified from the 1990s, lagged in network optimization and technology, and suffered from weak accountability.

“The work culture became more political than professional,” he said, adding the airline now needs equity injections and a fleet renewal.