Pakistan’s enterprises face formidable competition in international and regional markets, thereby creating a need to be increasingly cost efficient and price and quality competitive. At the same time, Pakistan seeks to improve working conditions and the environment in which work takes place, thereby requiring its enterprises to give greater attention to labour protection issues.

Employers seek greater flexibility in the nation’s labour markets as a means to reduce unit labour costs and improve their competitive situations.  Workers seek greater rewards for their productive efforts through improved working conditions, a safer working environment and better social security arrangements, all of which have the potential to raise labour costs and reduce the competitiveness of the nation’s enterprises.

It should be stressed, however, that there are real and potential benefits to enterprises that adopt a positive approach to compliance with labour protection standards, and to an increasing number of investors such compliance is an essential factor in the decision-making processes for new investment.  In short, fair labour standards and high levels of compliance by enterprises may well be a source of competitive advantage together with price and quality considerations, rather than a deterrent to private sector growth.

Bilateral interactions between employer and workers may assist in resolving a situation in which both parties want more and better, but these matters are of such significance to the nation as a whole, government is required to intervene.  Such interventions must strike a reasonable balance between encouraging economic efficiency and competitiveness in the interest of employers, on the one hand, and greater protection and fairness in the interest of workers, on the other.

Finding this balance is the over-riding purpose of this Labour Protection Policy 2005.

Click here to download Labour Protection Policy 2006.