Karachi: Provincial Minister for Labor and Human Resource, Shahid Abdul Salam Taheem, reassured industrialists at a luncheon hosted by the Korangi Association of Trade and Industry (KATI) that the Sindh government will not tolerate industries being blackmailed by labor organizations making illegal demands. He emphasized the government’s commitment to safeguarding both industrial operations and workers’ legitimate rights, with new regulations being developed in collaboration with the Ministry of Interior and other departments. The minister also highlighted that the recent minimum wage increase from Rs. 32,000 to Rs. 37,000 is part of the government’s ongoing efforts to support laborers while ensuring a favorable business climate for investors.
The event, held at KATI‘s headquarters, was attended by key industrial figures, including KATI President Junaid Naqi, Deputy Patron-in-Chief Zubair Chhaya, CEO of KITE Limited Zahid Saeed, Vice President Tariq Hussain, and former presidents Johar Qandhari, Farhan-ur-Rehman, Danish Khan, SM Yahya, Gulzar Firoz, Ehtshamuddin, among other senior members.
Minister Taheem acknowledged that KITE Limited—the development authority managing the Korangi Industrial Area—had not received any government funding since 2016. He vowed to recommend a meeting between the Sindh Chief Minister and the leadership of KATI and KITE Limited to ensure the release of the necessary funds for infrastructure upgrades. The minister also emphasized that the government is actively working on a one-window operation system to simplify compliance with labor laws and reduce interference from multiple departments. This system would address the longstanding issue of industrialists being frequently issued unnecessary notices by various government agencies.
Earlier in the event, KATI President Junaid Naqi voiced concerns about the harassment faced by businesses under the guise of labor law enforcement. He noted that over 1.5 million people depend on employment in the Korangi Industrial Area, with industries bearing the financial responsibility for their medical care, pensions, and other welfare needs. Naqi pointed out that while industrialists are committed to improving employee conditions, inconsistent regulations at both the provincial and federal levels have made compliance challenging. He called for a streamlined single-window system for employee registrations and other labor-related issues to ease the burden on businesses.
Deputy Patron-in-Chief Zubair Chhaya reinforced these points, stressing the critical role of industries in driving economic growth. He reminded attendees of the first industry established in Pakistan by Quaid-e-Azam Muhammad Ali Jinnah in Karachi in 1948, highlighting the importance of industry for the nation’s future. However, Chhaya warned that the illegal activities of certain labor groups, which use unwarranted demands and blackmail tactics, are now harming industries. While KATI continues to support legitimate labor demands, he emphasized the need for decisive action against groups that exploit businesses through such methods. Chhaya urged the Sindh government to create an environment that fosters investment and growth, helping to restore industrialists’ confidence.
Zahid Saeed, CEO of KITE Limited, noted that small and medium enterprises (SMEs) in the Korangi Industrial Area are particularly vulnerable to harassment by government departments. Unlike larger corporations, these SMEs lack dedicated HR departments and often struggle to navigate the complex regulatory landscape. Saeed criticized the involvement of 32 different departments in issuing permits and certifications, which creates unnecessary bottlenecks for businesses. He specifically called out the Civil Defense Department’s clearance requirements as burdensome and unnecessary.
Saeed also stressed the urgent need for infrastructure improvements in Korangi, including road repairs, drainage upgrades, and intersection renovations, to facilitate efficient industrial operations. He appealed to the labor minister to arrange a meeting with the Chief Minister to secure additional funding, not only for KATI but for other industrial town associations in Karachi. Saeed reiterated that the development of the Korangi Industrial Area is essential for maintaining the productivity and competitiveness of Pakistan’s largest export hub.