Karachi: Sindh’s Minister for Labor and Human Resources, Shahid Abdul Salam Taheem, assured industrialists that the provincial government would firmly address unlawful pressures from labor organizations. He spoke during a luncheon hosted by the Korangi Association of Trade and Industry (KATI).
Taheem emphasized that the government would not tolerate industries being blackmailed by labor groups making illegal demands. He reassured attendees that the government is committed to protecting both industries and the legitimate rights of workers. New regulations will be introduced in collaboration with the Ministry of Interior and other relevant departments.
The minister highlighted a recent increase in the minimum wage, raising it from Rs. 32,000 to Rs. 37,000. He explained that this increase aims to support laborers while maintaining a favorable business environment for investors.
The event attracted key industry leaders, including KATI President Junaid Naqi, Deputy Patron-in-Chief Zubair Chhaya, and CEO of KITE Limited Zahid Saeed. Taheem acknowledged that KITE Limited had not received government funding since 2016. He promised to recommend a meeting between the Chief Minister of Sindh and KATI and KITE Limited leadership to secure additional funds for necessary infrastructure improvements.
Taheem also discussed plans to implement a one-window operation to simplify compliance with labor laws. This initiative aims to reduce interference from multiple departments, which often issue unnecessary notices. The minister hopes this will alleviate the frustrations faced by industrialists.
KATI President Raised Concerns
Earlier, KATI President Junaid Naqi raised concerns about the harassment businesses endure regarding labor law enforcement. He pointed out that over 1.5 million people depend on the Korangi Industrial Area for employment. Industries bear substantial financial responsibilities, including medical expenses, pensions, and other welfare needs.
Naqi stated that industrialists are dedicated to improving facilities and working conditions for employees. However, inconsistent regulations at provincial and federal levels complicate compliance. He called for a streamlined single-window system for employee registrations and other labor-related matters to ease the burden on businesses.
Deputy Patron-in-Chief Zubair Chhaya supported these concerns, emphasizing the critical role industries play in driving economic growth. He reminded attendees of Pakistan’s first industry, established in Karachi in 1948 by Quaid-e-Azam Muhammad Ali Jinnah, highlighting the importance of industry for the country’s future. However, he warned that illegal activities by certain labor organizations could harm industries. Chhaya called for action against these groups while reaffirming KATI’s commitment to supporting genuine labor demands.
Zahid Saeed, CEO of KITE Limited, shared insights about the vulnerabilities of small and medium enterprises (SMEs) in Korangi. Unlike large corporations, SMEs often lack dedicated HR departments and struggle with complex regulatory requirements. Saeed noted that 32 different departments are involved in issuing permits and certifications, causing bottlenecks.
He specifically criticized the requirement for clearance from the Civil Defense Department as unnecessary and burdensome. Saeed emphasized the urgent need for infrastructure renovations in Korangi, including road repairs and improvements to drainage systems. He urged the labor minister to arrange a meeting with the Chief Minister to secure additional funding for KATI and other industrial associations in Karachi.
Saeed reiterated that developing the Korangi Industrial Area is crucial for maintaining the productivity and competitiveness of Pakistan’s largest export hub.
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