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SPECIAL: GSP+ Status And The Plight Of Pakistani Workers

The exploitation of workers in the Pakistan’s garment sweat shops has been a sticky issue because of the private sector’s employment practices. A study found that the workers face not just financial but also physiological and psychological pressures. The oppression is sustained due to the structural inequalities in Pakistani society, manifesting as power distance and the intrusive role of political parties, their clientelist practices, and patronage politics, besides fundamental issues of elite-driven social structure … writes Dr Sakariya Kareem writes on the GSP+ Status Extension and the case of abusive industries in Pakistan

Though in October 2023, Pakistan’s GSP+ (Generalised Scheme of Preference) status was renewed, experts around the world have not ceased to express their concerns over the excesses taking place in Pakistan’s GSP+-favoured industries. It will help Pakistan to get preferential treatment in the EU countries.

Pakistan’s textile industry is one of the prominent beneficiaries of such preferential trade deals. Ironically, the workers in this industry are also the most exploited and underpaid. International media, activities, and Human Rights organizations have persistently raised their voice against the issue of rampant exploitation of workers involved in industries supplying to the fast-fashion market of Europe, but policy-makers in Pakistan are inert such voices demanding justice.

As per investigations by the Guardian, Pakistani factory workers who supply to big brands in Europe are being paid less than 35 dollars a month, which is much lower than the legal minimum wages in Pakistan. However, upon investigation, the factory owners often denied their trucks with fashion brands or labor exploitations. One among them is Madina Gloves, a textile exporter company located in the Pakistani town of Samanabad, which falsely denied any claims of supplying garments to a British fashion company, despite its workers claiming it to be so.

As per a research study, labor exploitation in the Pakistan’s garment sweat shops has been a sticky issue because of the private sector’s employment practices. The study found that the workers face not just financial but also physiological and psychological pressures. The oppression is sustained due to the structural inequalities in Pakistani society, manifesting as power distance and the intrusive role of political parties, their clientelist practices, and patronage politics, besides fundamental issues of elite-driven social structure. The political economy aspect of oppression is evident from the lack of implementation of minimum wages for the workers, just because the business owners in close nexus of the government do not find it profitable and make sure the rules like minimum wages remain an empty threat.

The exploitative capitalist nature of the Pakistani sweat shops knows no bounds. As per Human Rights Watch, workers, especially women, suffer physical, verbal, and sexual abuse, along with necessary overtime and denial of basic needs like sanitation facilities or medical and maternity leaves. The nexus between business owners and politicians ensures the breakdown of labor union activities. Over the last decade or so, labor rights activists have been either shot dead or have been framed under false cases of extortion. The government has not done much despite the lived trauma of an explosion due to unsafe work conditions in a garment factory a few years back. The conditions of many of these factories are abysmal, with non-existent fire-safety regulations. The political clout of factory owners is so strong that no reforms take place despite consistent appeals by local and international organizations.  

In the wake of the rollover of GSP+ status and the existing oppression of labor in garment factories in Pakistan (which, as mentioned, is the major beneficiary), it is important to revisit the tenets of GSP+ policy. As highlighted by experts, GSP+ is a development tool, with focus on the effective promotion of human and labor rights progress. Apparently, only theoretically per se,  GSP+ makes it mandatory to implement 27 international conventions on human and labour rights, good governance, and environment protections. However, it seems no much weight has been given to the considerable evidence of how Pakistan has not been sincere about achieving these goals is not being much heed.

A few days ago, Human Rights Watch, expressed its concern on the renewal of GSP+ status against the abusive practices of the beneficiary governments.    Apart from labor exploitation in Pakistan’s garment and textile industry, Pakistan is a case of rampant human rights violations as well. In the wake of the extension of the GSP+ status of Pakistan, the HRW commented that, “Pakistan is by far the main GSP+ beneficiary, but the government has yet to consider reforming the highly abusive Blasphemy Law and Prevention of Cybercrimes Act, and political repression has intensified in the country over the past months.”

As of now, the current GSP regulations are set to expire on the 31st December 2023, and negotiations on new rules and reforms are underway. Though the EU has declared the extension of GSP+ till 2027, it is ideal that the terms of the renewed agreement be used as a disciplining mechanism for the abusive governments. As per Business Europe, “…the role that the GSP can play in promoting sustainable trade, transparency, and good governance, should be further underlined and reflected throughout the modernized EU Regulation, with improved monitoring procedures and stricter timelines, especially in cases of serious violations when it comes to the respect of human rights.”

Again, keeping in mind GSP+ as a development tool, the demand for reforms should hold water and not again be an empty threat. Experts have suggested that EU GSP+ scheme should include businesses and civil societies as important stakeholders to ensure monitoring and transparency. One important reform proposed by EU that needs to be strictly implemented is the withdrawal of preferences on certain or all products in the case of serious and systematic violation of principles laid down in the international conventions. This would act as a carrot and stick approach, disciplining notorious governments whenever the rules are flouted. This proposal would be successful with the active involvement of civil societies, who can act as a whistle-blower in case of abusive practices supported by the governments, and provide civil society a safer space to raise voice against oppression, and incentives Pakistani government to civil societies seriously. It has to be kept in mind that the continuation of GSP+ without any effective reforms will hurt the goals of human development and sustainability in the long term.

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