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Business Recorder
12 hours ago
- Business
- Business Recorder
Minimum monthly wage: KATI President rejects Sindh govt's proposal
KARACHI: The business and industrial community of Sindh has raised serious concerns over the provincial government's proposal to increase the minimum monthly wage to Rs 42,000. Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), rejected the proposal outright, stating that such an increase would be detrimental to Sindh's economy, industrial growth, and employment generation. Naqi emphasized that economic decisions must reflect the actual ground realities and prevailing macroeconomic indicators. With the national inflation rate currently at a historic low of 6%, he questioned the rationale behind a significant hike in the minimum wage. He pointed out that minimum wages in Punjab and Khyber Pakhtunkhwa range between Rs 37,000 and Rs 40,000, and if Sindh sets it at Rs 42,000, it would become the highest in the country, potentially prompting businesses to shift operations to more cost-effective provinces, thereby affecting investment and employment within Sindh. He further elaborated that even at the current minimum wage of Rs 37,000; the total cost per worker already exceeds Rs 61,000 per month. This includes Rs 4,500 in contributions to EOBI and SESSI, Rs 3,100 as an annual bonus, another Rs 3,100 in gratuity, Rs 1,500 for annual leave payments, Rs 8,000 for overtime (based on 25 hours/month), and Rs 3,800 in other employee benefits. This means that the actual financial burden per worker is already nearly double the base salary. If overtime rises to 48 hours, the monthly cost climbs beyond Rs 69,000, making Sindh-based industries non-competitive compared to other provinces. Naqi highlighted the severe financial and operational pressure industries in Sindh are already facing. He expressed frustration over poor enforcement of minimum wage laws, citing reports from the Sindh. Employees Social Security Institution (SESSI) and the Public Accounts Committee that state 80% of industries in Sindh are not complying with minimum wage legislation. Many workers, particularly those in the informal sector, are denied benefits such as overtime, paid leave, and bonuses, often receiving less than Rs 30,000 per month despite working 10-hour shifts. This disparity, according to Naqi, fosters social injustice and growing unrest in urban areas. He noted that informal entities paying below-legal wages are creating unfair competition for compliant businesses and that the resulting discontent among workers is fueling instability. Additionally, the erosion of labour unions has left around 90% of workers without access to their basic rights. He argued that any wage policy would remain ineffective unless existing labour laws are properly enforced. Otherwise, only a few informal businesses would benefit the same entities already evading regulation. Naqi warned that unchecked increases in labour costs could push industries to relocate to provinces with lower operational costs and better infrastructure, weakening Sindh's economy, reducing employment opportunities, and straining provincial resources. Naqi urged the Sindh government to set minimum wages in the range of Rs 38,000 to Rs 40,000, keeping them consistent with national inflation and other provincial benchmarks to avoid overburdening the industrial sector. He also called for capacity-building within the provincial labour department to ensure laws are implemented across both formal and informal sectors. He advocated for a phased transition toward a 'living wage' model through consultation between the government, employers, and labour representatives to ensure worker welfare without compromising industrial sustainability. Naqi also stressed that the proposed Sindh Labour Code should not be adopted until it guarantees the protection of workers and rights. Concluding his remarks, the KATI President emphasized the need to link wage policy with the availability of industrial infrastructure, including power and water supply, to maintain Sindh's industrial competitiveness and economic stability. He appealed to the Sindh government to base its economic decisions on practical realities and engage all stakeholders to safeguard the province's economy, investment climate, and job market. Copyright Business Recorder, 2025
Express Tribune
12-06-2025
- Health
- Express Tribune
SESSI made 'doubtful' medicine purchases
The Sindh Assembly's Public Accounts Committee (PAC) has ordered a full audit into the procurement of medicines worth Rs9 billion annually by the Sindh Employees Social Security Institution (SESSI), amid complaints of large-scale irregularities, substandard supplies, and misappropriation of public funds. The decision came during a PAC meeting held on Wednesday under the chairmanship of Nisar Khuhro. The committee reviewed SESSI's audit reports for the fiscal years 2018 and 2019. Senior officials, including Secretary Labour Rafiq Qureshi and SESSI Commissioner Miandad Rahujo, were in attendance. During the session, Khuhro expressed concern over the massive annual expenditure on medicines despite persistent complaints from workers and health staff about the supply of low-quality drugs and outdated machinery at SESSI hospitals. SESSI Commissioner Rahujo informed the committee that the institution operates seven major hospitals and 42 dispensaries across the province, including Walika Hospital, Landhi Hospital, and the Kidney Centre. These facilities serve industrial labourers and SESSI-registered employees. He stated that out of SESSI's Rs13billion annual budget, 70% — around Rs9billion — is spent on medicine procurement and healthcare services. The remaining Rs4billion is allocated to field directors. However, the PAC was told that only 70% of the medicine procurement follows formal tendering procedures, while the remaining 30% is purchased locally by directors, where most complaints and irregularities reportedly originate. Khuhro directed that a comprehensive audit be conducted to examine the entire procurement process, particularly the Rs9billion spent annually on medicines. He stressed the need for transparency and accountability in the use of public funds. The commissioner added that Hospital Management Committees had been formed to oversee hospital operations, and the SESSI Governing Body had recently approved a Rs1.4billion project to upgrade and reconstruct Walika Hospital. Construction is expected to commence within a year. Separately, the PAC raised serious concerns about violations of minimum wage laws across the province. The PAC chairman cited disturbing figures that nearly 80% of private industrial units are not paying the government-mandated minimum monthly wage of Rs37,000 to workers. When asked about compliance, Commissioner Rahujo revealed that out of 67,000 industrial units in Sindh, only 24,000 are registered with SESSI. Of these, 6,000 are non-operational and 18,000 are functional, collectively employing about 800,000 registered workers. He admitted that many units, including private security firms, fail to pay the full minimum wage. Calling it a "blatant violation of labour laws," Khuhro directed the Labour Department and SESSI to take immediate steps to ensure all workers receive the legal minimum wage, and to launch strict enforcement actions against defaulting units. The committee also turned its attention to internal issues within SESSI, particularly staffing and fraudulent appointments. Khuhro questioned the number of employees, the legitimacy of their hiring, and the attendance system in place. Commissioner Rahujo reported that SESSI currently employs 4,200 staff and has implemented a digital attendance system. He confirmed that several people hired on the basis of fake degrees had been dismissed after verification. In another damning disclosure, it was revealed that Rs50million had been siphoned off through fraudulent billing under the guise of repair works at SESSI facilities. The PAC ordered the Labour Secretary to conduct a detailed inquiry into the matter and submit a comprehensive report on the financial irregularities. Khuhro stressed that institutional reforms and strict oversight are essential to protect workers' rights and public resources. He reaffirmed that it is SESSI's core responsibility to serve the working class with transparency, efficiency, and integrity.
