**Karachi, August 16, 2025** — The **National Labor Federation (NLF)** has strongly condemned the recently approved **Rs. 18 billion budget of the Sindh Employees Social Security Institution (SESSI)**, terming it a blatant fraud against the workers of Sindh.
In a statement, NLF Karachi President Khalid Khan alleged that nearly **300,000 fake and ghost workers** were unlawfully added to SESSI’s workforce records to inflate the number of registered workers from the actual **500,000** to **800,000**. He claimed this manipulation was carried out to **distort budget allocations and facilitate large-scale corruption**.
“This budget was deliberately prepared to misappropriate workers’ contributions and exploit the labor force of Sindh,” Khalid Khan asserted.
According to the NLF, under the **Sindh Employees Social Security Act 2017**, the **per capita contribution** last year was correctly set at **Rs. 2,220** as per Section 75 of the Act. However, in the new budget for FY 2025–26, **Commissioner Safdar Hussain Rizvi** reduced the per capita contribution to **Rs. 1,620** — without legal or logical justification — while simultaneously inflating the workforce count.
Khalid Khan revealed that this proposal was opposed only by Zehra Khan, a Governing Body member, during the **August 11 Governing Body meeting**, but was still approved with the support or silence of other members. He further alleged that this scheme was a **“Plan B” by SESSI management** after its proposal for the renovation of Walika Hospital was rejected by the Governing Body.
The NLF also criticized SESSI for failing to implement the long-promised **Benazir Mazdoor Card (BMC) program**. Despite receiving an **annual Rs. 18 billion budget for the past four years**, SESSI has issued only **100,000 BMCs**, out of which just **80,000 workers** are actually receiving medical benefits. In contrast, more than **400,000 regularly contributing workers** remain without the card, depriving them of essential healthcare and welfare services.
Under the Social Security Act, only workers possessing an R-5 card are entitled to benefits. However, NLF maintains that **poor record-keeping and weak distribution mechanisms** have left a majority of genuine workers excluded from the system.
The NLF has demanded:
* The **immediate removal** of the **300,000 ghost workers** from the budget.
* The **urgent issuance of Benazir Mazdoor Cards** to all eligible contributing workers.
* A transparent audit of how the Rs. 18 billion in workers’ funds is being spent.
Khalid Khan warned that if these demands are not met, the NLF will **challenge both the proceedings of the August 11 Governing Body meeting and the FY 2025–26 budget in court**.
“We will not tolerate this organized exploitation of labor rights in Sindh. Workers’ funds must be safeguarded and utilized for their welfare, not for corruption and mismanagement,” he said.
The NLF, which is the **only labor rights organization in Pakistan with representation at the International Labor Organization (ILO)**, has vowed to escalate its campaign for accountability within SESSI to protect the rights of workers across Sindh.
