Pakistan Herald Publications announced a reduction of salaries for their employees. The decision was taken because of a reduction of advertising revenue.
In a circular issued by Pakistan Herald Publications they said they are facing financial problems as a steep rise in the cost of operations and lack of revenue became extremely difficult for them to deal with. To curtail these deficits without any delay, they needed to take swift action.
They decided to reduce the extent of Provisional Additional Payment (PAP) by 40% which is paid to the employees with their salaries.
Dwindling advertisement revenues for print and electronic media in Pakistan has brought several news organizations on the verge of closure or has made them layoff hundreds of employees.
The private sector including banks, the textile industry and telecom firms has slashed their advertisement budget by 50 per cent during the past few years.
The provincial governments of Punjab and Sindh, the main contributors of advertisement revenues for print and electronic media and the federal government in Islamabad, have slashed their advertisement budget by 70 per cent, leaving the media industry in a bad financial situation.
Earlier, Waqt Television, a leading news channels owned by the financially-strong Nawa-e-Waqt group of newspapers, decided to shut down its operations suddenly. No prior notice was given to its employees. It closed all bureaus in different parts of the country and asked its employees to leave the TV stations immediately.
Dunya News also made huge cuts in their salaries which lead to anchors and show hosts quitting their jobs and leaving.
Thus, due to the lack of resources, newspapers and magazines have shed pages and created redundancies of their own. Some are finding it hard to pay salaries to their retained employees.
With thousands in the media industry losing their jobs, it will be interesting to see if the government takes an initiative helps these professionals out.