Sindh urged to suspend inspection for labour levies

IQBAL MIRZA
KARACHI (March 16 2009)

Sindh Chief Minister has been requested to suspend inspections for labour levies as the industry, right now, is confronted with a host of problems. Industries are closing down, have become sick and are becoming hostage of cash flows resulting in reported non-servicing of even financial costs accrued on account of mark-up liabilities of the banks towards repayments on short term and long term financing.

Engr. M. A. Jabbar, Chairman, Site Association of Industry (SAI) has made these observations in a letter send to the Chief Minister of Sindh while drawing his attention towards the "crisis ridden industrial economy of Pakistan, which is also having adverse affect on the industries in SAI industrial trading estate."

Earlier during a meeting the Chief Minister was apprised of the multiple problems, which the industry is facing, ie, lack of infra-structure support, inefficient and interrupted supply of power and gas, law and order issues and high mark-ups are eroding the cost competitiveness of the domestic produce.

In the present situation the stringency of inspections on account of confirming the amount of labour levies in Sindh province may be out considered. This out consideration is for the simple reason that when the economy is not growing and industrial segment is growing with negative approach, jobs are lost and on the way to be further lost is a situation in which industry can not sustain the inspections related ascertaining of labour laws, he said.

In the letter it has been pointed out that the objectives are not served through present policy of inspection by labour department. The change in the present policy has been felt by the federal government, which has laid the task of formulating new labour inspection policy through research department of labour ministry.

This research also constitutes tri-partite discussions among stakeholders in which employers, employees and government are participating. The process is continuing to formulate new labour inspection policy to commensurate with the real supply side and meet the demand side of the policy, in conformance with the required improvements in the working environment and the labour-management relationship.

Engr. Jabbatr said that the present labour inspection policy is objective less. The targeted objects of inspections are to guide the industry to adhere to the requirement of safety of the worker according to the type of industry, in addition conduct education to the need for creating productive climate for increasing the production with the same capacity. The present policy is just a settlement of formal and informal cost compliance. The policy does not provide any services of guiding nature, helping composition, making available professionals to hold education as the tool for reducing the present constrained relationship between the labour and management.

Chairman SAI has suggested to the Chief Minister to suspend the inspections for at least one year, which is a turmoil year for the economy and in specific the issues confronting the industry which require it to spend more time in conservation, improving the efficiency and producing price competitive quality goods for home and overseas consumption.

In the end he requested the Chief Minister to order holding in abeyance/suspending the labour inspection till such time the pressure on industry is reduced or modalities of inspections are worked out on the basis of public-private joint inspection.

Copyright Business Recorder, 2009

Blockade of highways: export and import activities shrink alarmingly

MUHAMMAD ALI
KARACHI (March 16 2009)

The governments blockade of highways to foil lawyers attempt to march on Islamabad and stage sit-in on Constitutional Avenue for reinstatement of deposed judges caused billions of rupee losses to the national exchequer for all exports and imports activities scaled down during the last six days.

Long queues of containers of imported goods are waiting for transportation at Port Qasim and Karachi Port Trust (KPT) for last six days but hauliers are reluctant to transport these because of governments hostile maneuver.

Similarly, a large number of loaded and unloaded trucks, trailers are forcibly being used as road barriers by the law enforcers to block major highways aimed at containing lawyers convoys to reach Islamabad. When contacted President Karachi Goods Carriers Association (KGCA) , Noor Khan Niazi said that some 6000 trucks and trailers, containing goods for domestic consumption, exports, imports and raw material, have forcibly been detained to stymie the lawyers long march.

He said the loaded and unloaded vehicles have mostly been parked at Sukkar, Lodrah, Khanewal, Obaro, Parnawal, Rawaat and Texila. To a question, Niazi said that association has sent a complaint letter to Syed Qaim Ali Shah, chief minister, Sindh and has asked for intervention. But he said the provincial government has so far not responded positively hence transporters are reluctant to take goods to the Punjab.

He urged the government to provide security to the carriers in case of any untoward situation, saying that transporters are still deprived of getting compensation to their losses during December 27, 2008 pandemonium.

He expressed fear of commodity shortage and delay in the export consignments and added that the export shipments could be delayed, if impounded containers were not release. He said the country is passing through severe political and economic crisis, hence the association has called off its strike because it would further deepen the crisis.

Copyright Business Recorder, 2009

Rs 20 billion loss estimated due to long march in Multan

SARMAD MAHMUD
SIALKOT (March 16 2009)

Business activities have come to a standstill due to the recurrent public meetings, crackdown and lawyers rallies in this export-oriented and nucleus of cottage industry of the country, Multan. President Sialkot Chamber of Commerce and Industry (SCCI) Hassan Ali Bhatti said on Sunday that according to a rough estimate Multan has faced losses amounting to Rs 20 billion so far due to the long march and political tussle.

The exporters community of Sialkot despite various problems was struggling for fetching maximum foreign exchange for the country and we will continue the fight for strengthening the national exchequer, he further said. Sialkot which is known all over the world for exports of sports goods, surgical instruments, leather products, gloves of all sorts, sportswear, badges, musical instruments and martial uniforms and accessories through the city is earning one billion dollars, was suffering adversely due to the current upheaval in the country.

Bhatti added that business community particularly exporters of the area were facing multiple crisis due to the blockage of highways and seizing of containers loaded with exportable consignments which would delay the delivery of consignments at their ultimate destination.

SCCI President further said exporter community was making its hectic efforts for restoring the confidence of their annoyed foreign buyers because during past months exporters were unable to accomplish the foreign orders on time due to the prices of petroleum and load shedding of electricity and gas.

Hassan Bhatti said under the prevailing situation the exporters were paying 10 to 20 percent of the expenditures from its own packet for fulfilment of the international commitments, adding that how long the business community would spend from its pocket for handling foreign orders.

Copyright Business Recorder, 2009