Blackouts hit Pakistan's financial capital as workers extend strike

Blackouts spread to several parts of Pakistan's financial capital, as workers of Karachi Electric Supply extended their strike into a second week, delaying repairs and maintenance.

More Business news: Editor's pick of today's headlines

Last Updated: May 12, 2011

Damac to fight Cairo conviction Damac Properties said it would fight a conviction of its chairman in Egypt on charges of corruption by filing an arbitration claim against Egypt in the International Centre for Settlement of Investment Disputes. Read article

DP World in line for early stock listing in London DP World could be listed on the London Stock Exchange as early as May 26 after it got approval from its shareholders to proceed with the listing. Read article

All go on planet of the apps Industry Insights // Consumers are pushing the tech industry to come up with better ways to access the billions of apps they have downloaded. Read article

Shoppers in Abu Dhabi soon to sit in the lap of luxury Abu Dhabi is set for luxury, as one of the Middle East's largest premium retailers plans rapid growth. Read article

Pakistani clothing retailer Nishat making inroads in Dubai A major textiles manufacturer and retailer from Pakistan has made its first move into international markets with the opening of a new store in Dubai. Read article

More Business

At least 20,000 homes are without electricity after workers took illegal possession of office equipment and vehicles, bringing the operation to a standstill, Ayesha Eirabie, spokeswoman for the company, said by phone today.

Forty-five union leaders began a hunger strike on April 29, demanding 4,000 workers who were fired in January and then reinstated at the government's request, be given their previous assignments. Since they went back to work, these employees have been sidelined by the management and kept idle, Haji Shahzad, a union leader, said on the phone today.

The employees were let go after 500 of the 17,000-strong workforce accepted the severance package offered by the utility to reduce redundant jobs. The union represents about 11,000 employees, according to Akhlaq Khan, chairman of the union.

"I can't understand why serious action isn't being taken," Saeed Shafiq, president of the Karachi Chamber of Commerce & Industry said by phone today. "We need mental peace and an appropriate environment to do business and run industry."

Several parts of the city have been without power for four straight days, leading to street protests. The provincial government ordered police and paramilitary troops to ensure the safety of the utility's employees and property, according to a statement released on Tuesday.

Karachi, a port city home to 18 million people, contributes 70 per cent of the nation's tax revenue, according to the local government.

Karachi Electric fell 1.3 per cent to 2.32 rupees at the 3.30pm local time close in Karachi trade. The stock has declined 17.4 per cent this year, compared with a 0.5 per cent fall in the benchmark KSE100 Index.

The utility is owned by Dubai's Abraaj Capital, Pakistan's Hasan Associates and Saudi Arabia's Al-Jummaih Group. The government sold a 73 per cent stake in the company for $265 million (Dh973.3m) to Hasan Associates and Al-Jummaih Group in December 2005.

* Bloomberg