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Express Tribune
7 days ago
- Politics
- Express Tribune
Workers' body alleges corruption in SESSI and WWBS
The Workers' Solidarity Committee (WSC) — a coalition of labour, human rights, and social organisations alongside progressive intellectuals — has strongly condemned what it described as an "assault on workers' rights," the legitimisation of lawlessness through the Sindh Labour Code. WSC alleged large-scale corruption within key social protection institutions, the Sindh Employees Social Security Institution (SESSI) and Sindh Workers Welfare Board (WWBS). Speaking at a press conference at the Karachi Press Club, prominent activists including Anees Haroon (National Commission on Human Rights), Dr Riaz Shaikh (SZABIST), Nasir Mansoor (NTUF), Gul Shar (Watan Dost Mazdoor Federation), Liaqat Sahi (Democratic Workers Union), Razzaq Memon (Port Workers Union), Qazi Khizar (HRCP), Tahir Khan (PFUJ), Zehra Khan (HBWWF), and labour leader Comrade Usman Baloch, accused the Sindh Labour Dept of shielding factory owners while failing to enforce labour laws. They claimed that the WWBS - which manages over Rs50 billion in workers' funds - has been run on an ad-hoc basis for months, violated procurement rules, purchased an expensive Clifton office inaccessible to workers, and misused billions on poorly executed repairs, non-mandated insurance schemes, and unapproved projects such as a Rs3 billion e-bike programme. They demanded full investigation into WWBS expenditures and reconstitution of its board, permanent appointments in all social protection institutions, registration of at least 3 million workers in SESSI per court orders.
Business Recorder
10-08-2025
- Business
- Business Recorder
Consultation session held to address the challenges facing textile and automobile sectors
KARACHI: The SITE Association of Industry, in collaboration with the International Labour Organization (ILO) and the Small & Medium Enterprises Development Authority (SMEDA), recently organized a consultation session aimed at addressing challenges faced by the textile and automobile sectors. The session focused on identifying key obstacles faced by enterprises and prioritizing incentives to support the formalization of SMEs and their supply chains. The session offered members a chance to provide feedback on the already identified issues, share practical recommendations and incentives for SMEs and assist in shaping the future national roadmap for the SMEs formalization. M Naeem Ansari, National Project Coordinator ILO, Syed Nazar Ali, Secretary General EFP, Mukesh Kumar, Deputy General Manager SMEDA and Muhammad Awais, Project Consultant SME Formalization were present in the consultation session. Welcoming the guests and members to the consultation session, SVP Khalid Riaz of SITE Association of Industry said that many of our member enterprises have, for several years, dutifully contributed to the Sindh Employees' Social Security Institution (SESSI) and the Employees' Old-Age Benefits Institution (EOBI), in line with their legal obligations. Enterprises themselves see no return or recognition for their consistent financial input into these national institutions. We, at the SITE Association, strongly propose that the contributions to SESSI and EOBI should be rationalized with a defined ceiling or cap, especially for SMEs operating on thin profit margins. Our Association has always played a facilitative role on compliance matters. We are ready to deepen this role further, but reforms must go hand in hand with facilitation, he added. Khalid Riaz further said that formalization cannot succeed through regulation alone, we must ensure it is value-driven. This includes not just simplifying registration and inspection systems but also ensuring that employers who contribute to national institutions like SESSI and EOBI receive visible, timely services in return. The participants were informed that ILO in coordination with SMEDA is undertaking the development of a National Roadmap for the Formalization of SMEs in Pakistan. This strategic initiative aims to facilitate the transition of small & medium enterprises from the informal to the formal economy through evidence-based approaches and inclusive stakeholder engagement. The textile and automotive sectors, particularly their export-oriented value chains, are key focus areas of this roadmap. As part of this initiative, a comprehensive Baseline Study has been conducted to assess the current landscape of informality and analyse value chain dynamics within these sectors. Muhammad Awais, who led this study, presented the key findings of the baseline study insights during the consultation session. Speaking on this occasion as Former President of EFP, Former Chairman SAI, Majyd Aziz welcomed nomination of ILO representative in Karachi and appreciated SMEDA's role in promoting SMEs in Pakistan. He said that labour standards and environmental compliances are big challenges for Pakistani businesses. Textiles are our main exports but we remain under buyers' pressure all the time. Inspection, audit or checking is problematic for the SMEs. The SMEs should be given assurance for the social safety net by the government. Majyd Aziz suggested the government make 10-15% purchases from the SME sector so that they get orders and automatically come in the formal sector. Speaking about Occupational Safety & Health (OSH), he suggested that large industries should help out SMEs to follow these standards. Regional Chairman APTPMA Anwar Aziz expressed views on minimum wages and its overall financial impact. He suggested to charge a certain percentage of turnover on all industrial and commercial establishments to provide social cover to each and every labour, either covered or not. He also expressed views on gratuity law. Former Senior Vice President Abdul Kadir Bilwani, in response to the presentation, said that WHT should be abolished to reduce the burden, the definition of SME need to be revisited, contribution for all social related benefits has to be capped, expressing views on Valika Hospital he suggested the management control to be handed over to SITE along with the contribution share of Site, he strongly voiced the current SME sectors difficulties and burden of taxes. Secretary General EFP, Syed Nazar Ali said that despite many benefits, people are reluctant to come into the formal sector. Businesses should follow sustainable business practices including climate and social sustainability and economic viability. President Ahmed Azeem Alvi, Vice President Muhammad Riaz Dhedhi, Azeem Motiwala, Junaid-ur-Rehman, Ahmed Zulfiqar Chaudhry and representatives of textile and automobile sectors were also present in the session. Chairman of Labour sub-committee Muhammad Tahir Goreja proposed a vote of thanks. Copyright Business Recorder, 2025
Express Tribune
27-06-2025
- Business
- Express Tribune
SESSI asked to expand registration of workers
Sindh Assembly Public Accounts Committee Chairman Nisar Khuhro has said that since its inception, the Sindh Employees Social Security Institution (SESSI) has not undergone an audit. SESSI informed the PAC that its governing body had decided against conducting an audit, but Khuhro questioned whether SESSI considers itself above the constitution, refusing to undergo an audit. He stressed that SESSI is not exempted from audits and therefore ordered an audit of the institution. Khuhro, the president of the Sindh chapter of PPP, expressed these views while addressing a ceremony to mark the 72nd birth anniversary of Shaheed Benazir Bhutto, organised by the People's Labour Bureau at the SESSI headquarters on Thursday. Provincial Labour Minister Shahid Abdul Salam was also present on the occasion. Nisar Khuhro pointed out that SESSI's medical supplies worth Rs8 billion are not being audited. He questioned the functioning of hospitals under the institution despite the large amount of funds allocated for medicines. He stressed that an audit of the Rs8 billion allocation is essential to determine the proper utilisation of funds and the functioning of hospital equipment. The SESSI informed that out of the Rs13 billion funds, 70 per cent were spent on healthcare services, including medicines for hospitals, and 30 per cent on SECCI's directorate. Khuhro suggested that the Labour Department should focus on ensuring the provision of medicines to workers through SESSI hospitals. He pointed out that out of 670,000 industrial units, only 240,000 are registered with SESSI, whereas the actual number of workers is around six million. Khuhro said, non-registration of industrial units and their workers is a major weakness of the welfare institution. He suggested that the Labour Department should take steps to register workers, including those working in shops. He pointed out that the minimum wage of Rs37,000 for workers in the private sector is not being implemented. If the minimum wage of Rs37,000 is not being enforced, then how can the implementation of a higher wage of Rs42,000 be expected? Therefore, the Labour Department should ensure the implementation of the Sindh government's minimum wage policy for workers in both public and private sectors.
Business Recorder
26-06-2025
- 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.
