Lahore, October 16, 2023 – Malik Tahir Javaid, President of the Employers’ Federation of Pakistan (EFP), has sounded a warning about the pressing economic crises that are taking a severe toll on Pakistan’s industry.
He emphasized that the industrial sector in Pakistan is grappling with significant challenges concerning its ability to survive and sustain growth.
The escalating cost of energy, raw material shortages, high inflation, and the continuous depreciation of the national currency have collectively driven up the cost of doing business to unsustainable levels. This, in turn, has led to the closure of businesses and workforce layoffs across various industries. Tahir Javaid made these remarks during a “Bilateral Dialogue on Economic Crises and its Impact on Industry,” a collaborative event organized by the EFP and the Workers Employers Bilateral Council of Pakistan with the support of the International Labour Organization (ILO).
Syed Nazar Ali, Secretary General of the EFP, spoke during the event’s opening remarks, shedding light on the challenging economic climate in Pakistan. He highlighted the nation’s multiple issues, such as the current account deficit, persistent high inflation, consistently low productivity, and a declining GDP, all of which have created a multitude of difficulties for the industrial sector. The Bilateral Dialogue aimed to facilitate discussions between workers and employers to comprehensively understand the issues and their implications on the industry and its workforce, enabling the identification and prioritization of issues that can be jointly addressed.
Chaudhry Saad, Secretary General of WEBCOP Punjab, expressed deep concern about the extensive unemployment resulting from business closures and layoffs, as well as the rising cost of living brought about by these crises. The lack of social protection and underperforming social security institutions have added to the challenges faced by workers. He emphasized that the current conditions demand collective action by workers and employers to safeguard the industry and enhance the employability and social protection of workers.
Shazad Bukhari, a consultant, delivered a comprehensive presentation that underscored the significant challenges confronting both the industry and its workforce due to the prevailing economic distress.
During the event, representatives from both workers and employers shared vital insights into the challenges and potential solutions that could be achieved through cooperation. These challenges included low productivity, a shortage of skilled labor, a lack of innovation in value addition, product diversification for the industry, low wages, insufficient social protection, and mounting unemployment among the workforce. In response, a committee was formed with the task of preparing evidence-based policy papers that will recommend solutions to the problems faced by the industry, to be presented to the Government. This cooperative approach aims to address the critical issues faced by Pakistan’s industrial sector, fostering a more sustainable and secure economic future.
