The Reality of Labour in Pakistan

The Reality Of Labour In Pakistan

PO: Labour Day is often reduced to symbolism. In today’s context, what does it really represent?

A: Labour Day is, above all, a reminder that the rights workers enjoy today were not granted — they were won. Whether it is the eight-hour workday, minimum wages, maternity protection or workplace safety, these are the outcomes of collective struggle. In that sense, the day is not just commemorative; it is a call to action. It asks governments, employers and societies to renew their commitment to decent work, social justice and dignity for workers. Those principles remain just as relevant today as they were over a century ago.

PO: If you compare Pakistan in 2025 and today in 2026, how would you describe the labour landscape?

A: The reality is mixed. There are clear signs of progress, particularly at the policy level. For instance, the recent adoption of a code of practice on occupational safety and health in the construction sector is an important step in a high-risk industry. However, progress on paper does not always translate into progress on the ground. Incidents like building collapses and workplace accidents remind us that enforcement remains weak. So the picture is one of “pockets of progress” alongside persistent structural challenges.

PO: How do you justify “progress” when serious incidents continue to occur?

A: It comes down to three interconnected issues: informality, enforcement capacity, and compliance culture. A very large share of Pakistan’s workforce, roughly three-quarters tends tooperate in the informal economy. These workers are often unregistered, unprotected, and outside the reach of labour laws.

Even within the formal sector, enforcement is limited. Labour inspection systems are under-resourced; in some areas, only a handful of inspectors are responsible for thousands of enterprises. That makes effective monitoring extremely difficult.

At the same time, compliance is uneven. There are no shortages of laws in Pakistan, but there is a gap between legislation and implementation. So while progress exists, it is not yet consistent or widespread.

The Reality Of Labour In Pakistan

PO: Are there examples where things are working well?

A: Yes, and it is important to highlight them. The textile sector is a good example, largely because it is integrated into global supply chains. International buyers, particularly from Europe and the United States, require compliance with labour standards.

As a result, many factories have improved working conditions significantly. In fact, some facilities in Pakistan compare very well with those in developed economies. This demonstrates

that when there is a combination of regulatory pressure, market incentives, and awareness, meaningful improvements can be achieved.

PO: How central are international frameworks like GSP+ to driving these improvements?

A: They are very significant. Trade arrangements such as GSP+ are linked to adherence to international labour standards, including those of the ILO. Pakistan has ratified most of the core conventions, which reflects a strong level of commitment.

However, ratification alone is not enough. Implementation is what ultimately matters. At the same time, these frameworks create an external incentive — they signal to international markets that Pakistan is serious about labour rights. Maintaining and strengthening that credibility is crucial for both workers and the economy.

The Reality Of Labour In Pakistan

PO: The informal sector dominates Pakistan’s workforce. Realistically, how can those workers be protected?

A: Full formalisation is not something that can happen overnight, nor is it realistic to expect a complete transition. What is important is movement along a continuum.

This means gradually bringing workers into systems where they can access basic protections — such as minimum wages, social security, and the right to organise. One effective approach has been supporting worker organisations in sectors like domestic work and brick kilns, which are traditionally invisible and unregulated.

The informal economy is also highly resilient — it continues to function even during crises because it has to. The goal, therefore, is not to eliminate it, but to make it less vulnerable and more protected.

PO: Youth unemployment is often described as a major risk for Pakistan. How do you see it?

A: It is a serious structural concern. A large number of young people are outside education, employment and training, which limits both their individual futures and the country’s economic potential.

The challenge is twofold: the economy is not generating enough jobs, and the skills of young people are often not aligned with market needs. Addressing this requires long-term investment in education, vocational training and skills development.

Labour migration also plays a role here. Skilled workers who migrate tend to earn and remit significantly more. However, global instability can disrupt these opportunities and create risks of irregular migration, which must be carefully managed.

PO: Female participation in the workforce remains low. What are the key barriers?

A: The issue is complex and multi-layered. Social norms, limited mobility, lack of access to training, and workplace safety concerns all play a role. In addition, there are structural issues such as wage inequality and harassment, which discourage participation.

From a policy perspective, Pakistan has frameworks in place that promote equality and prohibit discrimination. However, enforcement again remains the challenge. Practical measures — such as safer workplaces, transport facilities, childcare support, and stronger enforcement of equal pay laws — can have a significant impact in improving participation.

PO: With artificial intelligence and automation becoming more prominent, should workers be concerned?

A: The conversation around AI often focuses on job losses, but the reality is more nuanced. Many jobs will change rather than disappear. The key issue is whether workers have the skills to adapt to these changes.

AI has the potential to increase productivity, but only if the workforce is equipped to use it effectively. This brings us back to the importance of education and continuous skills development. Countries that invest in these areas will be better positioned to benefit from technological change.

The Reality Of Labour In Pakistan

PO: Looking ahead to Labour Day 2027, what tangible changes would you hope to see?

A: I would hope to see measurable improvements in areas that directly affect workers’ lives. For example, a reduction in workplace accidents, particularly in high-risk sectors like construction, would be a strong indicator of progress.

Similarly, a decline in child labour would reflect better enforcement and greater awareness. And importantly, I would like to see more inclusive workplaces, where women can participate safely and equally.

These are not abstract goals — they are practical outcomes that would signal real change. Achieving them requires sustained commitment, not just from the government, but from employers, workers and society as a whole.

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