Pakistan Steel Mills workers say will challenge mass layoffs in court

A security guard sits in front of a wall with signs and slogans at the operation building at the Pakistan Steel Mills (PSM) on the outskirts of Karachi Feb 8, 2016. (Reuters)
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Updated 30 November 2020
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Pakistan Steel Mills workers say will challenge mass layoffs in court

  • PSM management argues the company’s accumulated losses reached Rs212 billion ($1.33 billion) in June
  • The termination of 4,500 contracts is believed to be the biggest layoff from a single entity in Pakistan’s history

KARACHI: Pakistan Steel Mills (PSM) employees are going to challenge in court the company’s recent decision to terminate the contracts of thousands of workers, union representatives said on Sunday.

The management of the state-owned company on Friday handed letters of termination to some 4,500 employees, arguing that PSM’s accumulated losses had reached Rs212 billion ($1.33 billion) in June, when the government decided that 9,350 workers would have to be fired for the dysfunctional enterprise to be revived.
“PSM has terminated 4,500 employees in the first phase of government’s plan to lay off 9,350 employees ... The employees have refused to accept this termination they have registered protests and have decided to challenge this decision in court next week,” Mirza Maqsood, President of Voice of Pakistan Steel Officers Association, told Arab News.

Located 40 kilometers from Karachi, Pakistan’s largest industrial complex with a steel production capacity of 1.1 million tons has been dysfunctional for the past few years. Its operations were suspended in 2015.
“Neither the Company has funds to revive the Mills nor are funds available from any other source to revive the Steel Mill. In any case, revival of the mill would require, firstly massive investment and secondly, entail a period of at least two years,” reads a PSM termination letter seen by Arab News.
The layoff was defended by federal Industries and Production Minister Hammad Azhar, who on Saturday said the terminated employees would be given compensation of Rs2.3 million on average.

“Since the closure of the mill, the government has paid around Rs35 billion as salaries and Rs20 billion as arears to the employees,” he said.

The discharge of workers is said to be one of the biggest layoffs of employees from a single government entity in the country’s history. 
 Karamat Ali, executive director at Pakistan Institute of Labor Education & Research (PILER), said the PSM layoff in unprecedented.
“No such number of employees have ever been fired from a single government institution,” he said.
The decision was also opposed by the provincial government of Sindh, which vowed to support the affected employees. 
“This is wrong and injustice. They (the federal government) must adhere to their earlier stance and commitments of turning the state institutions around with the help of their champions. I am with the employees,” Sindh Labor Minister Saeed Ghani told Arab News.
Mumrez Khan, convener of a representative body of employees, pensioners, suppliers, dealers and contractors of PSM, said that no serious efforts have been made by the federal government to revive the mill, claiming that negligence had caused losses even higher than those cited by PSM management.

“The accumulated losses have swelled to $12 billion on the account of closure of plants, revenue to the government and imports of steel products,” he said.
 


Government arrests two human smugglers linked to Greek boat tragedy that killed five Pakistanis

Updated 13 sec ago
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Government arrests two human smugglers linked to Greek boat tragedy that killed five Pakistanis

  • FIA says Muhammad Aslam and Saeed Ahmed were arrested in separate operations from Gujranwala and Gurjat
  • Investigations reveal victims of the boat tragedy paid over $30,000 after being promised safe passage to Europe

KARACHI: Pakistani authorities on Sunday arrested two men involved in a recent boat tragedy off the coast of Greece that killed at least five nationals, as part of an intensified crackdown on human smuggling networks, the Federal Investigation Agency (FIA) said.

The arrests come in the wake of a boat disaster last week near the Greek island of Gavdos, which highlighted the perilous journeys many migrants undertake, often driven by conflicts in the Middle East. In the case of Pakistani nationals, economic challenges push many young individuals to attempt dangerous crossings to Europe in search of better financial prospects.

The issue illegal immigrations to Europe came under greater scrutiny in the country last year when hundreds of migrants, including 262 Pakistanis, drowned after an overcrowded vessel capsized off the southwestern Greek coastal town of Pylos.

The FIA said it apprehended Muhammad Aslam and Saeed Ahmed in separate operations following directives from Prime Minister Shehbaz Sharif to target those facilitating illegal migration.

The Pakistani agency informed Aslam was part of an international human smuggling ring and was accused of orchestrating the ill-fated journey that saw Pakistani migrants taken to Libya before being put on a boat bound for Greece.

“Using advanced technology, Aslam was tracked and arrested in Gujranwala,” the FIA statement said, adding the second suspect was arrested in Gujrat district located in the eastern Punjab province and was accused of creating fake travel documents and charging large sums for his services.

The statement informed Aslam extorted Rs8.5 million ($30,660) from victims by promising safe passage to Europe.

The Pakistani premier called for enhanced cooperation with international agencies earlier this month, seeking swift action against human trafficking networks. He also instructed the FIA to compile a detailed report on migration-related incidents over the past year and implement an Integrated Border Management System (IBMS) to monitor and prevent illegal movement.

The FIA said in its statement it had formed special teams to track other suspects linked to human smuggling rings.

“We will use all available resources to arrest those playing with innocent lives,” Abdul Qadir Qamar, the director of the FIA’s Gujranwala zone, was quoted as saying in the statement.

Authorities have presented 174 human smuggling cases in court this year, with four convictions reported so far. The government has also decided to launch a public awareness campaign to discourage dangerous migration attempts.

“Concrete evidence will ensure the culprits face severe punishment,” Qamar added, emphasizing the government’s commitment to preventing such tragedies.


Pakistan government forms committee to negotiate with Imran Khan’s party amid growing polarization

Updated 32 min 18 sec ago
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Pakistan government forms committee to negotiate with Imran Khan’s party amid growing polarization

  • Development comes after Khan threatened civil disobedience in the country, seeking release of political prisoners
  • Government acknowledges talks can help break the current impasse which has also impacted national economy

ISLAMABAD: The government on Sunday formed a committee to hold talks with the opposition Pakistan Tehreek-e-Insaf (PTI) party, state media reported, to discuss a range of issues causing political polarization that has also impacted the country’s fragile economy.

The move comes after PTI founder and former Prime Minister Imran Khan threatened to launch civil disobedience by urging overseas Pakistanis, a key support base for his party, to halt remittances if the government does not meet his demands, including the release of political prisoners, by Dec. 22.

Khan, who has been imprisoned for over a year on charges he claims are politically motivated, has also called for judicial commissions to investigate violent protests on May 9 last year and Nov. 26 this year, which the government says involved his party supporters.

“Prime Minister Shehbaz Sharif has formed a committee comprising government members,” state-owned Pakistan Television News reported. “This committee will hold negotiations with Pakistan Tehreek-e-Insaf.”

The formation of the government’s negotiating team followed a meeting between PTI Chairman Barrister Gohar Khan and National Assembly Speaker Sardar Ayaz Sadiq on Saturday evening in which Gohar requested the creation of a parliamentary committee to facilitate dialogue. Sadiq subsequently approached the Prime Minister, urging him to nominate representatives for the talks.

The government’s committee includes key figures from the ruling Pakistan Muslim League-Nawaz (PML-N), such as Deputy Prime Minister Ishaq Dar, Political Adviser Rana Sanaullah and Senator Irfan Siddiqui, alongside representatives from allied parties. PTI has already established its own negotiating team.

The development comes a day after Pakistan’s military announced prison sentences for 25 people involved in the May 9, 2023, protests, which PTI has demanded be investigated. The military said it had gathered “irrefutable evidence” against those prosecuted and reiterated its commitment to bringing the planners of the violence to justice.

The announcement has raised concerns among supporters of former Prime Minister Imran Khan, who faces charges of inciting attacks against the armed forces and may potentially be tried in a military court.

The country has remained gripped by political unrest and uncertainty since Khan’s ouster from power through a parliamentary no-confidence vote, which has also exacerbated Pakistan’s economic hardships.

Senior government representatives have recently acknowledged that negotiations could offer a pathway out of the current political impasse. However, they have cautioned that it is too early to determine which of PTI’s demands might be addressed.


Pakistan PM orders crackdown on tax evasion, calls for modernization of revenue collection system

Updated 22 December 2024
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Pakistan PM orders crackdown on tax evasion, calls for modernization of revenue collection system

  • Pakistan’s tax-to-GDP ratio is among the lowest in the region, with government aiming to increase it to 13.5%
  • Tax reforms are also part of the IMF recommendations, which led to approval of a $7 billion loan package this year

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday directed authorities to take strict action against tax evasion and ensure non-compliance is addressed as part of his administration’s efforts to enhance revenue collection and modernize the tax system, according to the state media.

Chairing a meeting in Lahore, Sharif emphasized the need for incorporating advanced technology to improve the Federal Board of Revenue’s (FBR) performance.

“Improving the FBR’s performance through technology is the government’s top priority,” the Associated Press of Pakistan (APP) news agency quoted him as saying.

The prime minister called for the swift completion of the FBR’s value chain digitization and instructed the rapid implementation of video analytics in the cement and tobacco industries, sectors prone to tax underreporting.

He expressed optimism that digitization efforts would help recover billions of rupees for the national treasury.

The government has recently undertaken a series of tax measures, including expanding the tax base and targeting untaxed sectors.

Earlier this year, Finance Minister Muhammad Aurangzeb emphasized the need for everyone to pay their fair share, describing tax reforms as critical to breaking the cycle of external financial reliance.

Pakistan’s tax-to-GDP ratio remains among the lowest in the region, at just over nine percent, though the government aims to increase it to 13.5% in the coming years.

The Pakistani administration has also announced to launch a crackdown on affluent individuals not yet in the tax net, with the FBR tasked to identify and penalize evaders.

The tax reforms are also part of the International Monetary Fund’s recommendations, which led to the approval of a fresh $7 billion loan package for the country this year.


Pakistan vows zero tolerance for mistreatment of polio workers as year’s last vaccination drive ends

Updated 22 December 2024
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Pakistan vows zero tolerance for mistreatment of polio workers as year’s last vaccination drive ends

  • Polio teams often face hostility in Pakistan, with militant groups targeting them and locals resisting their efforts
  • Government promises to take strong action against cases of harassment or abuse directed at frontline workers

KARACHI: Pakistan’s government on Saturday said it would not tolerate the mistreatment of polio workers as the final vaccination campaign of the year to eradicate the disease concluded across much of the country amid a sharp increase in number of cases in 2024.

The weeklong nationwide vaccination drive, held Dec. 16-22, aimed to immunize 44 million children in 143 districts. Despite extensive efforts, the 2024 tally reached 64 cases this month.

Pakistan and Afghanistan remain the only two countries in the world where polio remains endemic. Regular door-to-door campaigns have been a cornerstone of Pakistan’s eradication strategy, but vaccination teams often face hostility, with militant groups targeting workers and local communities resisting efforts.

Earlier this week, authorities in Sindh arrested six people after a polio team was reportedly attacked by a tribal family in Karachi’s Qur’angi neighborhood.

“The government has adopted a zero-tolerance policy against actions targeting polio workers,” said Ayesha Raza Farooq, the prime minister’s focal person for polio eradication.

“Mistreatment of polio workers will not be tolerated,” she continued. “We are in contact with provincial authorities regarding incidents involving workers, and strict action will be taken against perpetrators.”

Farooq urged all provincial and district officials to take strong action against cases of harassment or abuse directed at frontline workers. She emphasized that protecting polio teams was critical to safeguarding children from the devastating effects of the disease.

The anti-polio campaign is yet to be carried out in Pakistan’s Balochistan province where officials announced a postponement of the vaccination drive until Dec. 30 due to a lack of preparedness.

The province has reported 26 cases this year, the highest in Pakistan, highlighting its vulnerability to the virus.

Farooq also appealed to communities to support and protect polio workers, calling them the backbone of the nation’s fight against polio.

“Ending polio is a national priority, and frontline workers are like our backbone [in this struggle],” she added.


China’s ADM Group to invest $350 million in Pakistan’s EV sector

Updated 22 December 2024
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China’s ADM Group to invest $350 million in Pakistan’s EV sector

  • The South Asian country plans to convert 30 percent of all vehicles to electric power by 2030
  • The Chinese firm will set up electric vehicle manufacturing plant, over 3,000 charging stations

ISLAMABAD: Chinese enterprise ADM Group has announced an investment of $350 million in Pakistan’s electric vehicle (EV) sector, Pakistani state media reported on Saturday.

As part of the initiative, the Chinese firm will establish more than 3,000 electric vehicle charging stations across the South Asian country, the Radio Pakistan broadcaster reported.

Of these 3,000 charging stations, 1,000 will be set up in Sindh, 1,500 in Punjab, and 750 in Khyber Pakhtunkhwa and Balochistan provinces.

“The ADM Group will allocate $250 million for the establishment of an electric vehicle manufacturing plant in Pakistan,” the report read.

The Chinese enterprise will provide $90 million for developing the necessary charging infrastructure, according to Pakistani state media.

The electric vehicles, which will be capable of traveling up to 300 kilometers on a single charge, are expected to help reduce carbon emissions and lessen the country’s dependence on conventional fuel sources.

Pakistan’s Privatization Minister Abdul Aleem Khan said in November that 30 percent of all vehicles in Pakistan would be converted to electric power by 2030 as the South Asian country takes step to combat air pollution and other climate change effects.

“Pakistan aims to convert 30 percent of its vehicles to electric by 2030,” Khan said as he addressed the “Transport and Digital Middle Corridor and Beyond” session at the UN COP29 summit in Baku.

“Significant steps are underway to support the widespread adoption of electric vehicles in Pakistan … the government is actively working on infrastructure development for EVs, including the installation of charging stations.”

Hybrid electric vehicle sales have more than doubled in Pakistan in the past year. BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, said in September up to 50 percent of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets.

Warren Buffett-backed Chinese electric vehicle giant BYD announced its entry into Pakistan in August, making the nation of 250 million people one of its newest markets.

Pakistani media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.

Under the government’s New Energy Vehicle (NEV) policy announced last month, the government has introduced subsidies of Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers like rickshaws, with a total allocation of Rs4 billion. These subsidies will be distributed through auctions. So far, two companies have been granted licenses, and 31 more applications are under review.

Additional initiatives include offering free electric bikes or scooters to high-achieving students and reducing duties on EV components to encourage local manufacturing. The government is also set to establish a New Energy Fund and a New Energy Vehicle Center to support these measures.