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Pak-Arab Fertilizers, Multan.

Introduction:-
Pakistan is an agricultural country where about 72% of the total population
not only resides in rural areas but also relies for its sustenance on agro-
activities. This sector is contributing a lion's share in the national economy.
Most of the national economic target is dependent on the performance of our
agricultural sector- It contributes 24% to the total GDP. The fertilizer is an
important input, which boosts the agro-production. Unfortunately, it is used
three times lower in our country than that of the developed countries in the
world. There are ten fertilizer manufacturing units in Pakistan. Out of these
four are located in the public sector and six are operating in private sector.
The local fertilizer companies meet almost 80% of Pakistan’s Fertilizer
requirement. It mainly comprises of 4,180 million tons for urea and
remaining for NP, DP, CAN and SSP.

It was 12th June, 1962 when a company named National Gas Fertilizers
Factory was established by Pakistan Industrial Development Corporation
(PIDC) in Multan, with Ammonia and Nitric Acid plants of 200 & l00 M.Tons
per day respectively. Ammonium Nitrate & Urea are the final products
having daily production of 330 and 180 M Tons respectively. The plant was
not able to achieve the rated capacity. In pursuance of the above mentioned
decisions, a treaty was signed between Pakistan Industrial Development
Corporation (now NFC) and ADNOC (Abu Dhabi National Oil Company) on
March 7, 1973 and an agreement was made on 1st November l973, to
establish a new company named PAKARAB FERTILIZERS (Pvt.) LTD. On July
14, 2005 Pak Arab Fertilizer was privatized at a cost of Rs14.125 billion
under privatization policy of Government of Pakistan, acquired by Reliance
Exports (Private) Limited under the umbrella of Fatima Group and Arif Habib
Group. The Company did well in the fertilizer Department but it generates
certain critical issues. One of the main issues it generates is the Hazardous
Water pollution which nearly pollutes the useable Water Canal as a result
cultivated land becomes polluted which affects greatly on agricultural
department and also dangerously harmful to living environment. After the
privatization, 600 workers were laid off which results in greater
unemployment. After that, the sacked worker demanded the restoration of
jobs which creates a big issue. The enraged workers also start revealing
inside information of the company. They claimed that the privatization

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Pak-Arab Fertilizers, Multan.

process was not transparent, personal interest of big parties were involved.
The issues were few, but they rocked the news papers quite a time.

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Pak-Arab Fertilizers, Multan.

Executive Summary:-
In these case studies, we have studied some practical life issues which are
very important for our daily life activities. These case studies which are
based on Pak Arab Fertilizers are real life situations and gave us most basic
information of critical Decision making which is the basic need of today’s
world. In first case, Pak Arab Fertilizers are polluting our environment by
discharging their toxic non-treated water waste into Canal and make Clean
basic useable Canals polluted. Due to discharging their wastes into Canal,
these Canal water are now vulnerable to society and mostly to agricultural
area. Toxic wastes from Fertilizer Factory and poor Sewage system is
causing the life taking diseases which should be control through better Re-
enforcing the law and Improved Infrastructure for waste Management.

In Second Case, after the privatization of Pak Arab Fertilizers, the new
management has expelled most of the employees without any legal notice or
through proper procedure. Sacked employee of recently privatized Pak Arab
Fertilizer Multan staged a demonstration in front of Press Club and
threatened to commit self-immolation if their jobs were not restored. Due to
expulsion of employees, there are many problems which are developed to
the expelled employees which ultimately affect the normal society too.

In Third Case, PAFL (Pak Arab Fertilizers) sold in six months, whether it’s a
sick unit sold or healthy transaction made. The company earned a pre-tax
profit of Rs. 1, 116 million in 2003. The plant is operating at excellent levels
on the average, which are above the installed capacity. Pakistan has been,
for the last 12 years, following a strategy for de regulation, privatization and
transformation of its PSEs. The enraged workers are at protest and the
government and media is quiet because of selling the PAFL. They were
claimed the privatization process was not transparent, personal interests of
big parties including the Army Generals, the mayors, the influential
politicians, and the businessmen. Due the protestation the internal
information of the company is revealing which is not good for the company.
So the company should take some steps to cover this problem.

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Pak-Arab Fertilizers, Multan.

Case 1: Hazardous Effects of Water Borne Disease


on Environment:-
Pakistan is agro-based economy country for which water is the main and
crucial ingredient of cultivation but in reality our water resources are
depleting and become polluted very rapidly. There are many reasons of
pollution of water which causes serious and critical health issues to
inhabitants and also environment.

Main and Critical Problem:


Impurity of Canal and stream water due to Toxic and waste
chemicals:-

The main and most definitely occurring reason of pollution of usage water is
the Impurity of Canal and stream water due to unhealthy Toxic and full of
waste chemical substances. Canal water are the basic source for Pakistan
water usage supply both for cultivation of land and usage for Human such as
drinking, bathing and many other things. The world biggest Canal system
occurs in Pakistan. So it is the basic source of water for our Country. But this
main source of our usage is badly hurt due to some critical and impotent
issues.

Problems related to Water pollution problem:


Factories and fertilizer plants discharge their toxic and waste
materials into canals and streams:-

Factories and Fertilizer plants like Pak Arab Fertilizer is continuously


discharging their waste water into canals. Most Pakistani Industries, located
around major cities, are increasingly polluting small streams which are a
source of drinking water for many inhabitants also the rivers through
untreated toxic wastes. Crops in about 20 villages were being seriously
affected by contaminated canal water. Some of the waste is biodegradable,
but much of it is in the form of chemical compounds that not only degrade
the environment but also cause damage to surroundings, like Pak Arab
fertilizer discharge their toxic untreated waste into canal which causes the
Mango gardens to dry and declining of mango orchards and species of Shish
am trees. First the mango tree stem discolored into black with stinking liquid
and then loose energy and finally died within a few days and their roots are

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Pak-Arab Fertilizers, Multan.

source of infection spread. Due to toxic waste the Cultivations lands are in
big problems.

False Bureaucratic attitudes in Agriculture Research Wing:-

It was observed the bureaucratic attitudes in agriculture research wing


caused the rapid spread of disease in fruit plants near to canal. The
researchers did not take the whole matter seriously. The researchers also
used delaying tactics into conducting pathogenic tests of infected mango
plants which further promoted the sudden drying of mango trees.

Shortage of field staff in only Research Centre:-

There is big shortage of field staff in Shuja’abad mango research station.


The big problem of research centre is vacant technical posts and acute
shortage of scientific literature and lack of coordination between different
research organizations.

Poor Condition and Direct drainage of City Sewage wastes into


Canals:-

Most of the City’s Sewage water is drainage into the Canal. Bacterial
contaminations of the canals, from untreated sewage dumping, pose an
equally dangerous threat to humans, livestock facilities and ecosystem
health. Fecalio and ecoli bacteria from animal feces, dirty diapers, failing
septic systems and municipal sewer overflows can contribute to higher levels
of bacteria. The diseases which are caused by bacteria are causing serious
Human health issues. The water related contaminated water causes many
diseases such as hepatitis, dysentery, cholera and typhoid fever. According
to estimate, about 80 percent disease and 40 percent deaths in the area can
be attributed to the use of contaminated water. The resulting water pollution
causes the quality of the water to deteriorate and affects aquatic
ecosystems. Childers are mostly vulnerable to those toxic wastes resulting
respiratory, gastrointestinal and dermatological or skin diseases. These
waste both from factories and sewage also affects and causes diseases in
gazing cattle’s which become use for humans. City release chemicals into
sewage pipes also clogging drainage system. Such blockages often result in
pools of stagnant contaminated water in streets which causes life taking
diseases.

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Pak-Arab Fertilizers, Multan.

Low level of equipment and man power to remove chemical wastes


from Sewage pipes every day:-

There is acute shortage of equipment and manpower for removing chemical


and toxic wastes from sewage pipes. The Wasa is facing shortage of both
things but also the out dated and low level of equipment which is already
present.

Insufficient funds to Wasa to reopen dry drains:-

Wasa (Water and Sanitation Authority’s) is facing insufficient funds to


reopen its fifteen dry drained and use them for factory waste. Due to
insufficient funds, they are unable to acquire new and advance technology
for dumping these wastes which causes serious damaging water pollution.

Green and Brown issues of Environmental problem:-

Pakistan is facing environmental problems of both green and brown nature.


The green issues mainly include environmental problems of irrigated
agriculture, rain-fed agriculture, forests, and rangelands. The brown
environmental issues are categorized in five main group’s -industrial
wastewater pollution, domestic water pollution, motor vehicle emissions,
urban and industrial air pollution and marine and coastal zone pollution.

Illiteracy factor:-

One of main factor is also illiteracy of people. People do not know how they
can survive or make use of these canals water. They have lack of
information about the factories wastes’ into the canals and also using this
canal water with proper precautions.

Alternatives of the problem:


Punishing Fertilizer Company for violating laws:-

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Pak-Arab Fertilizers, Multan.

The government has decided to punish fertilizer plant for dumping hazardous
waste. A National Assembly standing committee has decided to push the
government to punish Pak Arab Fertilizer for dumping hazardous chemical
waste in the open and into the irrigation channels. Such punishing method
will restrict the factories and fertilizer plant to dump the wate material into
canals with minimum quantity.

Regulations need to be respected, strengthened and enforced:-

Pak Arab is one of the main and biggest unit of fertilizer in the Pakistan but
it is not flowing law in case of waste management but is dumping in clean
water. The management must respect and comply with law. The government
and concerned department should not only warn but take some action to
control the situation. Such actions will definitely restrict such water pollutant
factors like Fertilizer Company and sewage control system (Wasa) to make
sure that canal water is not being polluted.

Additional funding should be allocated for clean up:-

Pak Arab fertilizer has used and polluted our water with limited
accountability. To restore canals of clean water and protect the health of our
families, we must require financial support for toxic clean-ups water from
those who have used clean water resources for toxic waste. The government
must charge them penalty and also use certain amount of profit every year
for rural development. This will also benefit the population area and
cultivation land to be safe from water pollutions caused by fertilizer factory.

Improved infrastructure for waste management:-

Poor sewage system and direct drainage of sewage and factory untreated
toxic waste water are the major contributors of bacterial and parasitic
pollution in the canals. There should be critical need of improvement of
waste management infrastructure. A timeline and federal funding for the
upgrade of combined sewage systems should be explored to remedy this
persistent overflow problem. This is main difference factor which can
minimize water pollution to the lowest extent and also make water pollution
to zero percent in the future.

Fertile land must be preserved:-

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Pak-Arab Fertilizers, Multan.

The massive waste dumping in clean water has contributed to the decline of
regional water quality. Protecting canals from these wastes helps us to
maintain the balance of nature and the waters that make this such a special
place to live. We all have responsibility to protect canals water quality for
our families, our neighbors and our future. It’s designed to raise awareness
of the ecological value of the region.

Reduce illiteracy:-

To make use of canal water useable, we should reduce the illiteracy factor by
conducting seminars, going to canal areas populations and make awareness
of water pollutions and giving them information about different methods of
making canal water useable. By using such method, we can reduce disease
factor to an extent and also make living standard much better.

Best Alternative Recommendation:


Re-enforcing the law and Improved Infrastructure for waste
Management:-

To make water pollution vulnerable to the society, the government should


impose more restrict laws of water pollution and also make a monitory
system to check them whether they are violating the law or not. The laws
must be more strengthened and enforced so that the Fertilizer Company
should obey the laws and have no courage to pollute the clean canal water.

There is critical need of improvement of waste management infrastructure.


Both in Fertilizer Company and municipal sewage system should adopt the
better and improved management of waste water toxic materials.

Due to such positive factors, the canal water will gradually become clean and
will be non-harmful for both cultivation land area and usage of clean water.
The mango gardens will be cultivated much better again which is basic
source for Pakistan export and also will be much more benefit for aquatic
life. Due to these improvements, the canal water will be clean from bacterial
and will be useable for our families, our neighbors, also for cattle’s and other
inhabitants. The population near the canal region will get more profit from
the canal water for agricultural purposes and personal usage too.

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Pak-Arab Fertilizers, Multan.

By Muhammad Salman Yousaf

MBC-09-61

Case 2: Sacked workers demand restoration of


jobs:-
Problem:
Sacked employee of recently privatized Pak Arab Fertilizer
Multan staged a demonstration in front of Press Club and threatened to
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Pak-Arab Fertilizers, Multan.

commit self-immolation if their jobs were not restored. They all were
chanting slogans against the new management of Pak Arab. The workers
want to save their jobs because they survived twenty years of serving was
not a small period.

Causes:
 Management had expelled the employees who were raising voice
against the exploitation.

 After the company’s privatization the management had no experience


of fertilizer industry has terminated the services of 500 skilled
workers.

 The workers did not develop the skills according to the need of time.

Effects:
It was clear that downsizing had increased the workload and
reduced job security of those who stayed in their jobs.

 After violation of the workers 1500 employees were left out of 2100
employees.

 Employees were beaten by security for denying leave their houses.

 They did not want their family to face the inhuman actions by the
management.

 The participants chanted slogans against the management and


demanded of the government to their rights.

 Policy makers, employers, and occupational health professionals


should recognize that organizational downsizing may pose mental
health risks among employees.

 Presenters actually have the effects of making them more stressed-


and worse at their core job, making them more vulnerable to
redundancy in the future.

Alternatives:
 Management should need to try to increase their credibility by being
completely honest and transparent in the first place.
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Pak-Arab Fertilizers, Multan.

 Company should provide the benefits like; golden handshake and early
retirement.

 The management should plan for huge training program for their
employees.

 Management should need to produce new plants in the factory and


hire new workers for the working on that plant.

 The management should hiring by the public sector was based on


references rather than skills.

 The factory should have new well qualified management.

Implementation of preferred alternative:


The best and preferred alternative
for the company is that company hired employees from the public sector on
the basis of references and their skills. If the company will hire the qualified
and technical and skilled persons than company will have in the profit
because the qualified and skilled person well known their work rather than
an uneducated and non skilled person, that’s why I have choose this
alternative for sacked workers demand restoration of jobs.

By Rana Mudassar Rohail

MBC-10-51

Case 3: PAFL sold in six months, a sick unit sold or


healthy transaction made:-
The enraged workers are at protest. They are angry because of selling the
PAFL. The unit produces different types of fertilizers like Nitro-phosphate,
Calcium Ammonium Nitrate and Urea. The company earned a pre-tax profit
of Rs. 1, 116 million in 2003. The plant is operating at excellent levels on the
average, which are above the installed capacity. Pakistan has been, for the
last 12 years, following a strategy for de regulation, privatization and
transformation of its PSEs. The financial assistance and various other

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Pak-Arab Fertilizers, Multan.

programs from different agencies, like Asian Development Bank and World
Bank, were linked to Government undertaking reforms to transform the
PSEs. Why sale is the solution?

On the other hand the company has been privatized due to some critical
problems. All media, management and Government are quiet. Why?

Main Problem or Critical Problem:


 The enraged workers are at protest and the government and media is
quiet because of selling the PAFL.

 They were not only chanting slogans about the management injustice
but also started revealing inside information of the company.

 They were claimed the privatization process was not transparent,


personal interests of big parties including the Army Generals, the
mayors, the influential politicians, and the businessmen.

Effects of the problem:


Due the protestation the internal information of the company is revealing
which is not good for the company. So the company should take some steps
to cover this problem.

Alternatives of this problem:


 If the company wants to increase the work standard then the company
should invest more and more to stop the selling of PAFL.

 If the protestors want to ‘No Selling’ of PAFL due to its sickness then
the company should not sell the PAFL.

 The protestors should protest in a specific way. They should grant their
demands to the government and should not reveal the internal
information of the company.

 The media must play a good role to reveal the information of


protestors to the government so that government can take some steps
to selling the PAFL.

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Pak-Arab Fertilizers, Multan.

Best Alternative:
They must not sit quiet. They should play the important role to reveal the
correct information of the protestors so that the selling of PAFL can be
stopped. And government can take some good steps make good policies for
the repairing of PAFL and try to save our huge invested part of Fertilizer
Company.

By Haroon Iqbal

MBC-10-38

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Pak-Arab Fertilizers, Multan.

Case2#
PROBLEMS:

Kick out the workers


reduce the workers from factory
increase the cost of production
increase work hours
unskilled employees

EFFECTS
workers would be un employed
workers would be homeless
arised poverty
created hunger problem
inefficient performance

Solution:
job alternative should be given
residence should provide
golden shake hand should given to employees
children’s education facility should provide

BEST ALTERNATIVE:
RANK WISE
1)JOB ALTERNATIVE
2)residence should provide
golden shake hand should given to employees
children’s education facility should provide

By Sadaf Naaz

MBC-10-23

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Pak-Arab Fertilizers, Multan.

Case 3#
This case is about the privatization of Pak Arab fertilizer. This case describes the effects of
privatization on the workers and the marketing system. The temperature in Multan had risen to
45 Celsius. But the risen temperature did not disturb them. Mohammed Raiz knew if he and his
companions survived from that risen temperature then they would kill by poverty. they all were
serving on Pak Arab Fertilizers from 20 years .
Now they all were against the new management of Pak Arab and they were saying slogans
against the new management. The pak Arab Fertilizers became privatized and due to
privatization many of the employs were sacked and these sacked workers exhibit their views in
front of Press club and they also threatened them to commit an action of self sacrificing if their
jobs were not restored. Mohammed Raiz could the injustice life had done to him. He served that
factory for the last two decades. This factory had given them a place to live. This factory has the
only means of their earning. That was their small world which was now snatched from them
.They were compelled to vacate their quarters in which they had lived. They were asked that they
had seen the consequences for not vacating their quarters. Mohammed Nadeem Akhter and his
neighbor were also compelled to leave their quarters .They was badly beaten by security for
denying to leave their quarters. Their families were abused and forced and their belongings were
thrown out of the quarters .They were behaved inhumane actions by the management.. In action
committee there were two leaders M. Nadeem and M. Raiz said on that occasion that over 500
workers had been laid off in four months when the pak Arab privatized. There were 2100
employees at the plant when it was in public sector but now its strength had reduced to 1500.
Due to privatization all the powers had given to private sector. This new management had
expelled all the office bearers of the employee’s welfare association on nov 16 to punish those
people who raised voice against them. They declared that some generals are sleeping partners in
different units of pak Arab Fertilizers Multan who had provided funds on only 1.5 percent
markup from different financial institutes. Chemical engineer urea plant Mr Rasheed khan while
briefing the journalists said that the new management had no experienced of fertilizers industry
and they had terminated the services of 500 skilled workers and now they had forced the remain
staff to serve more than 8 h0urs to maintain the production. He also argued that this new
management had destroyed the marketing system. As a result of it the prices increased and the
increased prices striped the farmers which may affect the production. The leaders of the action
committee argued that the privatization process of pak Arab fertilizers was not fair because the
buyers did not pay a single penny and the entire amount of 12 billion was paid by UBL under the
govt pressure on the least markup. The participants of action committee were saying slogans
against the new management and demanded of the government to protect their rights .They
blamed media was not reporting as it is busy only with political issues.

By Sobia Anwar

MBC-10-20

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Pak-Arab Fertilizers, Multan.

Work Distribution:-

Group Members Work Contribution

Muhammad Salman Yousaf Introduction & Project Designing


Muhammad Salman Yousaf Executive Summary
Muhammad Salman Yousaf Case Study #1
Rana Mudassar Rohail Case Study #2
Haroon Iqbal Case Study #3
Sadaf Naaz Case Study #2
Sobia Anwar Case Study #3

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Pak-Arab Fertilizers, Multan.

Table of Contents:-
Introduction:-...............................................................................1
Executive Summary:-....................................................................3
Case 1: Hazardous Effects of Water Borne Disease on Environment:-
...................................................................................................4
Main and Critical Problem:...................................................................4
Problems related to Water pollution problem:......................................4
Alternatives of the problem:.................................................................6
Case 2: Sacked workers demand restoration of jobs:-.....................9
Problem:.............................................................................................9
Causes:.............................................................................................10
Effects:.............................................................................................10
Alternatives:......................................................................................10
Implementation of preferred alternative:............................................11
Case 3: PAFL sold in six months, a sick unit sold or healthy
transaction made:-.....................................................................11
Main Problem or Critical Problem:.......................................................12
Effects of the problem:.......................................................................12
Alternatives of this problem:..............................................................12
Best Alternative:................................................................................13
Case2#....................................................................................... 14
Case 3#...................................................................................... 15
Work Distribution:-.....................................................................16

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