
Pakistan reaffirms commitment to promote safe, dignified conditions for laborers on May Day
Labor Day, observed on May 1, is a global celebration of workers' rights and the labor movement. It honors the struggles and achievements of workers in securing fair wages, safe working conditions and dignity in the workplace. In many countries, including Pakistan, it serves as a reminder of the importance of social justice and the ongoing need to protect labor rights in the face of economic and social challenges.
Labor laws are rarely implemented in Pakistan, where laborers often work in dangerous and exploitative conditions at construction sites, mines and factories. In most instances in Pakistan, especially in the informal jobs sector, laborers are hired below the minimum wage set by the government and not provided proper safety equipment.
'Today, as the nation observes Labor Day, Pakistan reaffirms its unwavering commitment to promoting safe, healthy and dignified conditions for its workers — the real driving force behind our nation's growth and resilience,' Sharif said in a message shared by his office.
'The protection of fundamental labor rights is enshrined in our Constitution and fully aligns with the International Labour Organization's core conventions.'
Sharif noted Pakistan had undertaken legislative and administrative reforms in recent years to strengthen the protection of workers. He said the government took steps to broaden the coverage of the Employees' Old-Age Benefits Institution (EOBI) and the Workers Welfare Fund.
Pakistan's labor class has suffered immensely as the South Asian country desperately tries to escape a prolonged economic crisis. Inflation reached a record high of 38 percent in 2023 as Islamabad scrapped fuel and food subsidies to comply with the International Monetary Fund's demands for a financial bailout package.
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Arab News
16 hours ago
- Arab News
Pakistani auto part makers fear plant closures as IMF-backed reforms take effect this month
KARACHI: Pakistani automobile part makers fear closure of their manufacturing plants as the country moves to allow used car imports and slash tariffs to 15 percent later this month as part of reforms backed by the International Monetary Fund (IMF), a Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) member said on Thursday. Prime Minister Shehbaz Sharif's government aims to expand Pakistan's debt-ridden economy by 4.2 percent this fiscal year, which began in July, with the support of the IMF that has set out certain conditions for the South Asian nation to keep receiving tranches of its $7 billion loan that are critical for the country's economic recovery. Aamir Allawala, a leading PAAPAM member and a former chairman, said the IMF-backed policy measures, if implemented in their current form and without taking Pakistan's 'ground realities' into consideration, may shut 1,200 companies that have been manufacturing and supplying steel, plastic, rubber, copper, aluminum and auxiliary parts to 13 car assemblers, including local partners of Toyota, Honda, Suzuki, Hyundai, Kia Motors and Changan. 'There are some major decisions that the government has made which includes opening the import of used cars without any [vehicle] age limit,' Allawala, the CEO of Techno Auto Glass Ltd. that supplies windshields, window glass and other auto parts to Suzuki, Honda and Toyota, told reporters in Karachi on Thursday. 'Under the National Tariffs Policy, the [import] duties will be cut and that would change the automobile industry in a very strange manner,' he said, adding the new policy is expected to take effect by the end of August. Arab News tried reaching out to Pakistani commerce ministry spokesperson Muhammad Ashraf, but he was not immediately available for a comment. Liberalizing trade is one of the conditions set out by the IMF to help Islamabad achieve 4.2 percent economic growth. 'The new National Tariff Policy (FY25–30) should substantially streamline and reduce tariffs [customs and regulatory duties] and reduce non-tariff barriers and move away from the regime of special duties applied to imports for particular industries,' the Washington-based lender said in its country report in May. 'Trade barriers are particularly extensive in the automotive sector, and the next iteration of the automobile policy [covering fiscal years 26–31], on which consultations are still ongoing, should reduce tariffs and preferential support for local production.' Allawala said his manufacturing plant, worth Rs4.3 billion ($15.2 million), at the Port Qasim industrial complex was running at 20 percent capacity and manufacturing 10,000 glasses a month, mainly because of what the company's chief operating officer Arsalan Allawala called a 'lack of demand.' Besides the Techno glass manufacturing hub, Arab News visited similar facilities of Aisha Steel Mills, Agriauto Stamping Company, Rubatech Manufacturing Company, Jin Kwang Jaz and Thal Boshuku Pakistan. While raw material manufacturer Aisha Steel Mills was hardly running its Rs22 billion ($78 million) plant, most of the other vendors were producing stamping, rubber, car seats and other accessories below capacity. 'We can produce sets for 54,000 cars a year but our current production stands at 18,000 sets due to lower demand,' said Muhammad Umer Razzaq, an official of Thal Boshuku that is a joint venture between Thal and Toyota Boshuku and Toyota Tsusho. Faheem Kapadia, CEO of Agriauto Stamping, said while they had a capacity to supply four-wheeler auto parts for about 300,000 car units annually, his factory was catering to 130,000 vehicles only. In recent years, Pakistan has faced high inflation, which peaked to a record 38 percent in May 2023, eroding purchasing power of the masses. Though the inflation rate has significantly declined, the World Bank last month said 45 percent of Pakistanis were now living below poverty line. Pakistan's car sales have dropped by more than 50 percent to 111,402 units over the last three years till June, according to the Pakistan Automotive Manufacturers Association (PAMA) data. 'The economy's mismanagement, the kind of conditions we have, terrorism, political instability, the economic crash that happened twice, thrice resulted into the reduction of car volumes,' Allawala told Arab News, adding that up to 45 percent taxes on buying a new car can be another reason for low sales. 'It is a source of worry for us because the auto parts industry has invested billions of rupees, in fact hundreds of billions of rupees, in the auto parts manufacturing sector and there are a lot of jobs at stake.' The government needed to be 'cognizant of the policy direction to make sure that such job losses in the sector are avoided,' he said, adding that PAAPAM directly employs 500,000 skilled workers while workers associated with Pakistan's overall automobile industry can be estimated at 2.5 million. Sharif approved in May a 'gradual but significant' reduction in Pakistan's import tariffs that would see general customs duties capped at 15 percent, compared to current rates that sometimes exceed 100 percent. 'No car-manufacturing country in the world has allowed the import of used cars. They have a total control over the used cars' import be that India, Thailand, Malaysia, Indonesia, China or any other country which has its own automobile industry,' Allawala said. India was maintaining 125 percent tariffs on car imports, Thailand 80 percent, Indonesia 60 percent and Vietnam 52 percent to protect their respective industries, according to the auto part maker. 'Pakistan is saying we are slashing the import duty to 15 percent,' Allawala exclaimed, saying PAAPAM had written a letter to the commerce ministry seeking a fact-finding mission to 'see the ground reality.' 'We wrote them about three, four days ago. They have not responded yet.'


Arab News
16 hours ago
- Arab News
Iranian president to arrive in Pakistan tomorrow on state visit to discuss ties
ISLAMABAD: Iranian President Dr. Masoud Pezeshkian will arrive in Pakistan tomorrow on a one-day state visit to discuss bilateral relations, the Pakistani foreign office said on Friday. Pakistan and Iran enjoy close ties and have signed several pacts in trade, energy and security in recent years. However, the two countries have also been at odds over instability along their shared porous border but have always been quick in moving to ease tensions each time. In May, Iranian Foreign Minister Seyyed Abbas Araghchi visited Pakistan at a time of heightened tensions between Pakistan and India over an attack in the disputed Kashmir region. His visit was followed by another by Prime Minister Shehbaz Sharif to Iran, where he had met Iranian President Masoud Pezeshkian and Supreme Leader Ayatollah Ali Khamenei. This would be Pezeshkian's first official visit to Pakistan as the Iranian president, according to the Pakistani foreign office. He will be accompanied by a high-level delegation, including FM Araghchi, senior ministers and other high-ranking officials. 'During his stay, President Pezeshkian will meet with the President of Pakistan, H.E. Asif Ali Zardari, and hold delegation-level talks with Prime Minister of Pakistan, H.E. Shehbaz Sharif,' the foreign office said. Despite several agreements between them, tensions surged between Pakistan and Iran in January last year when both countries exchanged rare, tit-for-tat airstrikes on what they said were militant hideouts on each other's soil. Late Iranian president Ebrahim Raisi had later traveled to Pakistan on a three-day visit in April to de-escalate tensions and strengthen bilateral relations. The two sides had also signed memorandums of understanding in the fields of trade, science technology, agriculture, health, culture, and judicial matters. The ties, which initially witnessed a thaw during FM Araghchi's visit to Pakistan, further warmed up after Islamabad voiced its support of Tehran during the 12-day Israel-Iran war that began after Israeli strikes on Iranian nuclear sites. Pakistan remained engaged in talks with regional partners like Saudi Arabia, Iran, China and Qatar to de-escalate tensions in the Middle East after Iran conducted retaliatory strikes on Israel and a US base in Qatar, raising fears the conflict could draw in other regional states. 'The visit [by Iranian president] is expected to further strengthen the brotherly relations between Pakistan and Iran,' the Pakistani foreign office said.


Arab News
a day ago
- Arab News
Pakistan working on ‘comprehensive, effective' strategy to eliminate militants— PM
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday said his government is working on a 'comprehensive, effective and actionable strategy' to completely eliminate militant outfits in the country, state-run media reported, as Islamabad grapples with a rise in militant attacks in its western provinces. Pakistan has struggled to contain increasing militant attacks in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces in recent months, where it faces twin insurgencies launched by the Pakistani Taliban and separatist Baloch militant outfits. Sharif chaired a meeting of the Steering Committee on Counterterrorism and Establishment of the State's Writ (Harden the State) in Islamabad, state broadcaster Radio Pakistan said in a report. The meeting was attended by senior military and government officials, including Field Marshal General Syed Asim Munir, Deputy PM Ishaq Dar, National Security Adviser Lt. Gen. Muhammad Asim Malik, the four provincial chief secretaries, police chiefs, senior ministers and officials. 'He [Sharif] said Pakistan is working on a comprehensive, effective, and actionable strategy for the complete elimination of anti-social elements including Fitna Al-Hindustan and Khawarij,' Radio Pakistan said. Pakistan's military frequently uses 'Fitna-al-Khawarij' for the Tehreek-e-Taliban Pakistan (TTP) and 'Fitna-al-Hindustan,' to describe the Balochistan Liberation Army (BLA) and other separatist outfits. Islamabad accuses New Delhi of arming and funding militant groups in KP and Balochistan, a charge India denies. Pakistan also blames Afghanistan for providing sanctuaries to militants that it says launch attacks on Pakistani soil. Kabul has always denied the allegations. Sharif said Pakistan has adopted a multi-dimensional strategy in its war against 'terrorism,' noting that ground operations, relevant legislation, meaningful public engagement, and discouragement of extremist ideologies have been effectively utilized by authorities. 'He directed the committee to ensure effective coordination between the federal and the provincial governments and strictly implement its recommendations,' the report added. The Pakistani prime minister highlighted that a peaceful and 'terrorism-free strong state structure' is essential to restore investors' confidence at the international level. Sharif said the government's reforms, such as the digitization of several systems and improvement in the tax system, were restoring investors' confidence. A day earlier, Pakistan's army chief addressed participants at the 16th National Workshop Balochistan in Rawalpindi where he reiterated the military's commitment to eliminating militancy. Munir had said during his speech that violent extremism must be countered, while calling for a unified national response. Separatist groups in Balochistan have long accused the Pakistani state of exploiting the province's vast natural resources, ranging from gas and coal to copper and gold, without equitably sharing the benefits with local communities. They claim successive governments have prioritized extraction over development, leaving the region impoverished despite its mineral wealth. Pakistani authorities have, however, consistently rejected such accusations, maintaining that a significant number of development projects are underway to uplift Balochistan's economy, improve infrastructure and expand access to education and health care. In KP, the TTP has launched some of the deadliest attacks against law enforcers and civilians in its bid to impose its own version of Islam in the country.