IN an increasingly globalised world, compliance with international standards concerning labour conditions and quality control is playing a key role in determining who has access to lucrative foreign markets, and who gets locked out. Due to the negligence of both the state and the private sector, Pakistan has in the past lost foreign clients; the EU ban on import of Pakistani seafood, lifted not too long ago, is a case in point. Another possible ban may be on the horizon as US entertainment giant Walt Disney is considering ditching Pakistan as a source for products. Unless the situation changes drastically, over 12 Pakistani firms will lose their Disney contracts because the country has scored poorly on an index grading performance on indicators such as working standards and human rights. It is believed that 2012’s horrific Baldia factory blaze in Karachi, in which over 250 were killed, as well as the failure of provincial governments to conduct physical inspections of factories, played a role in convincing Disney to part ways with Pakistani producers unless things improve. As some exporters fear, if Disney leaves other major American and European players may also stop doing business with us.

Pakistan is paying a heavy price for poor governance in multiple ways. The lack of physical inspections and other oversights not only put workers’ lives at risk, they also mean loss of business. Over time provincial labour departments have become dysfunctional and almost redundant. Labour unions have also failed to raise a voice for workers’ rights and to demand the enforcement of standards mandated by the International Labour Organisation and other global bodies. In the near term, sustained economic diplomacy is needed to convince Disney and others that Pakistan is working to improve labour conditions, while practical steps need to be taken to support the country’s claims. If provincial governments, especially Punjab and Sindh, publicly announce that physical inspections of factories are to be resumed, it may play a role in convincing foreign buyers to stay, while attracting new business. Global markets are becoming increasingly competitive and unless all stakeholders are willing to face the challenge and work towards implementing international standards, Pakistan will trail far behind fast-developing economies.