Implementation of the Agreement concerning additional employment injury benefits to the victims of the Ali Enterprises fire and strengthening... - Final evaluation

This report details the findings of the Project on Implementation of the Agreement concerning additional employment injury benefits to the victims of the Ali Enterprises fire and strengthening of the employment injury insurance and benefit system in Sindh Province. A tragic factory fire on 11 September 2012 occurred in the A l i Enterprises a garment factory in Baldia Town, Karachi. Approximately 255 workers died and more than 50 were injured. The fire was the most serious industrial accident in the history of Pakistan. Following the fire, the German retailer and main buyer, KiK Textilien financed an initial emergency compensation package of US$1 million (Rs. 97.975 million) for the families of the deceased victims. A further amount of US$618,000 (Rs 61.8 million) was paid by the employers1 and an amount of US$57,000 (Rs 5.7 million) was contributed by local philanthropists. The total compensation amount of US$1,654,750 (Rs165.475 million) was distributed as immediate relief to dependants of identified victims through the Sindh High Court (SHC) Commission in 2013.

It is important to note that the background to the Baldia project is not about the initial funds provided as outlined above but rather the voluntary financing of the additional employment injury benefits to the Baldia victims.