Govt urged to avert Walt Disney blacklisting

Published March 25, 2014
Walt Disney, a US licensor of Disney-branded consumer products, is dropping Pakistan from the Permitted Sourcing Countries list as the country failed to allay its concerns regarding certain UN standards. — File Photo
Walt Disney, a US licensor of Disney-branded consumer products, is dropping Pakistan from the Permitted Sourcing Countries list as the country failed to allay its concerns regarding certain UN standards. — File Photo

FAISALABAD: Entrepreneurs have urged the government to go all out to keep Pakistan on the list of Walt Disney Company, who is going to blacklist country by 31st of this month because of different deficiencies.

Walt Disney, a US licensor of Disney-branded consumer products, is dropping Pakistan from the Permitted Sourcing Countries list as the country failed to allay its concerns regarding certain UN standards. Pakistan is ranked low on World Governance Index (WGI).

The production of Walt Disney in Pakistan through its different licensors is about $200 million.

The chairman of Pakistan Textile Exporters Association (PTEA), Sheikh Ilyas Mahmood, feared that removal of Pakistan from Permitted Sourcing Countries list would buffet the textile exports of Pakistan.

He said the decision of Walt Disney would also prompt other big retailers like WalMart, Macys, Sears, Target, Kmart, Kohls, Gap, JC Penny and others to disconnect their business ties with Pakistan.

Mr Mahmood feared that the blacklisting would cost Pakistan millions of dollars leading to closure of countless medium and small units rendering thousands of workers jobless.

In a letter sent to the International Labour Organisation, the PTEA mentioned that effects of Walt Disney directive would lead towards unemployment of more than 25,000 workers (revenue of $5,000 equals 1 employee), who are currently accommodating their families, maintaining a minimum standard of living.

Together, around a quarter million people in terms of the workers families will fall below poverty line, he said, adding that there will be compound loss of over $500m.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Azhar Majeed Sheikh said that a minimum of 25 points were required to qualify, however, Pakistan could get only 19 points and was declared ineligible.

He said the government and industry must join hands to tackle the situation as soon as possible. The government had been talking about enhancing the export to $25 billion, but Instead of increasing the exports we are losing our buyers, he added.

Walt Disney Company claims to be the world’s largest provider of licences, since consumer products of Disney brand are being produced by thousands of independent vendors working in numerous manufacturing facilities around the world.

Walt Disney Company has made changes to its sourcing guidelines that will improve management to meet the challenges associated with a complex global supply chain.

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