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Published on Monday, 12 September 2016

KiK to pay US$5.15m to Ali Enterprise fire victims

Written by Brett Mathews

GENEVA – The work of the German Partnership for Sustainable Textiles has seen its most tangible results this week as German clothing retailer KiK agreed to pay US$ 5.15 million to provide compensation to the victims of one of the worst industrial accidents in Pakistan. The fire at the Ali Enterprises garment factory in Baldia, Karachi, in September 2012, is reported to have taken the lives of more than 255 workers and left 57 workers injured. The recent intervention of the German Partnership helped facilitate the compensation agreement after four years of disputes between the respective parties. KiK, which at the time of the fire was purchasing around 75 per cent of goods manufactured by Ali Enterprises, initially paid US$1m up front in compensation but further payments had not been forthcoming.


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