Total expenditure, 2000-01

21.3 % of GDP

National education budget, 2001-02

2.0 % of GDP

Health and nutrition expenditure, 2001-02

0.7 % of GNP

Defence expenditure, 2001-02

3.6 % of GDP

 Poverty (measurement)

Head Count Ratio (HCR)

Income or consumption level falls below the poverty line based on requirement of 2150 calories which amounts to Rs. 650 per head

Total poverty, 1998-99

28.2 % live under poverty line

Urban poverty, 1998-99

19.3 % live under poverty line

Rural poverty, 1998-99

31.95 % live under poverty line

Remark: Poverty in rural areas prevails. There is a significant relationship (negative correlation) between agricultural growth and poverty

Agricultural growth, 2000-01

1.4 %

Inequality (measurement)

Gini Coefficient (the higher the more inequality)

Household Gini coefficient, 1998-99

0.410

Inter-sectoral disparity on rural-urban basis

Rural area:

The lowest 20 % (1^st quantile?) receive only 6.9 % of total income where as the highest 20% (4^th quantile?) receive 46.8 %

Gini coefficient: 0.401

Urban area:

1^st quantile: 6.0 %

4^th quantile: 50.0 %

Gini coefficient: 0.33

Population above 10 years (million), 2000

93.1  (47.8 male and 45.3 female)

Labor force (million), 2000

39.8

Labor force participation rate, 2000

42.8 %

Annual growth of labor force

2.1%

Urban labor force, 2000

11.8 (million), 30 %

Male: 10.5 million

Female: 1.3 million

Rural labor force, 2000

28 million, 70 %

Male: 23.1 million

Female: 4.9 million

Employed labor force by sectors (%), 2000

• Agriculture

• Manifacturing and Mining

• Construction

• Wholesale and Retail Trade

• Transport

• Finance, Insurance, Community and Services

• Others

48.42

11.25

5.78

13.50

5.03

15.02

0.70

Total unemployment rate, 2002

7.82 %

Labour legislation

Labour market regulatory and institutional framework evolved under British Rule in India prior to independence of 1947.

Post 1947 Pakistan adapted the “Industrial Dispute Act” to regulate relations between employers and workers.

1969 “Industrial Relations Ordinance” (IRO)

• Introduction of legislation guaranteeing freedom of association and right to collective bargaining in accordance with ILO conventions 87’ and 98’ ratified by Pakistan

• Enactment of laws relating to workers welfare and minimum wage of workers

1972 4^th labour policy included:

• Workers participation in management

• Laws relating to old-age benefits, workers children education, introduction to statutory bonus and group insurance schemes

• Establishment of quasi-judicial body “National Industrial Relation Commission”

1970s Employers felt betrayed. Nationalisation policy in the 70s  

           reinforced this feeling. Employers demand power for hire

           and fire

1977-1988

           3 Tripartite labour conferences in 1977, 1980, 1988

           Establishment of 2 commissions:

·         Labour Commission 1978

·         Labour Welfare Commission 1987

1993 Establishment of 2 Task Forces on social security and

         labour

1999 Establishment of “Commission on labour laws”

         Recommendations to consolidate existing labour laws into

         6 broad categories:

·         Industrial relations

·         Employment conditions

·         Wages

·         Human resource development

·         Occupational safety and health

·         Labour welfare and social safety net

July 30-31, 2001 24^th Pakistan tripartite labour conference

2002 New labour policy

Core ILO conventions ratified by Pakistan

Convention 29 Forced labour

Convention 87 Freedom of association

Convention 98 Collective Bargaining

Convention100 Equal Renumeration

Convention 105 Abolition of forced labour

Convention 111 Discrimination in employment and occupations

Convention 182 Worst Forms of child labour

Social safety network

1972 Labour law policy included:

• Employees Social Security Institution

Old-age benefit scheme (old-age pension, invalidity, survivors/widows, old-age grant)

• Workers Welfare Fund Organisation

Financing of projects related to housing, schools for workers children, sanitation (hospitals) and other projects related to workers’ welfare

What is the social safety network like in new labour policy???

What about female workers, mine workers, child and bonded labour???

No. of trade unions, 2001

7220

Membership of trade unions

1.009.900

No. of collective bargaining agents

2005

No. of labour courts in provinces

26

Industrial relations

Bilateralism: increasing cooperation and mutual trust between employers and workers

Tripartism: when bilateral talks fail the state conciliates, arbitrates and adjudicates

Bilateralism

2000 Establishment of the “Workers-Employers Bilateral Council of Pakistan” (WEBCOP)

Major national centers for unions

APFTU, APFOL, MLF, PNFTU

Informal sector (IS)

IS accounts for 66 % of all employment outside the agricultural sector. Informal employment is evenly distributed in urban and rural areas.

Children in IS

34 % of IS fall in age group 10-14 years (and 5 % of old aged people 60+)

Conversely, their respective share in the formal sector is 2 % and 3 %.

Female workers

Women are least paid in IS: 69 % get less than Rs.1500

Working hours and wages

Majority in IS works longer and is less paid: 61 % get less than Rs. 2500 (minimum wage)

Literacy rate in formal and informal sector

Formal sector: 80 %

Informal sector: 40 %

Total number of children of up to 14 yrs

55.042 million (43 % of total population)

Total number of children (excluding AJK, FATA and Northern Areas) in the age group 5-14, 1998 census

36.431 million (29 % of total population)

19.944 million of 5-9 years

16.487 million of 10-14 years

Participation rate of children 5-14 years

Participation rate of children 5-9 years

Participation rate of children 10-14  years

3.313 million (8.3 %%)

0.53 million (2.66 %)

2.09 million (12.65 %)

School participation rate Primary (I-V)

School participation rate Middle (VI-VIII)

77 %

51 %

Child labour no. according to provinces, 1996

Punjab: 59 %

NWFP: 32 %

Sindh: 9 %

Balochistan: <0.5 %

Area division of child labour

Urban area:3.25 %

Rural area: 10.29 % (participation rate)

Child labour occupations

Agriculture (67 %)

Manufacturing (11 %)

Wholesale and trade (9 %)

Community, social, personal services (8 %)

Transport, Storage and communication (4%

Working hours

46 % work more than 35 hours a week

13 % work more than 56 hours a week

Employment status of working children

70.11 % Unpaid family helpers

23.15 % Employees

6.74 % Self-employed

Literacy among working children

33.17 %

Problems related to children

Child bonded labour

Children trafficking

Camel jockeys

Child soldiers

Street children

Child smuggler

Laws regarding Child labour

Constitution of Pakistan:

Article 11 (1) – (3)

1991 The Employment of Children Act

1992 The Bonded Labor System (Abolition) Act

ILO Conventions concerning child labour ratified by Pakistan

Convention No. 6: Night work of young persons (Industry)

Convention No. 15: Minimum age (Trimmers and Stokers)

Convention No. 59: Minimum age (Industry)

Convention No. 90 Night work of young persons (Industry) revised 1949.

Convention No. 182 Worst Forms of Child labour (formally ratified by Pakistan?????)

Pakistan joins International Programme for the Elimination of Child labour (IPEC)

1994 Signing of ILO-IPEC Memorandum of Understanding (MOU)

2000 Approval of National Plan of Action (NPA) for the Progressive Elimination of Child Labour

SAARC Conventions regarding child labour

2002 SAARC Convention on Preventing and Combating the Trafficing in Women and Children for Prostitution

2002 SAARC Convention on Regional Arrangements for the Promotion of Child Welfare in South Asia

GDP/head (US $), 2002

?

GDP/head (Rs. Adjusted) (growth per capita income at 1980-81 prices)???

4881

Real GDP growth, 2001

3.6%

Real GDP growth, 2002 projection

4.5%

Inflation rate

2.6%

Interest rate

?

Exports (in Million US $), 2000-01

9.202 (15.7 % of GDP)

Major exports, 2000-01

Cotton (58.9%); Leather (7.5%); Rice (5.7%); Textiles (5.9%); Sports goods (2.9%)

Major export partners/markets, 2000-01

USA (24.4%); UK (6.3%); Hong Kong (5.5%); Germany (5.3%), Dubai (5.3%), Saudi Arabia, Japan

Imports (in Million US$), 2000-01

10.729

Major imports, 2000-01

Petroleum & Products (31.3%); Chemicals (20.0%); Machinery excluding transport equipment (19.3%)

Major import partners, 2000-01

Saudi Arabia (11.7%); Kuwait (8.9%); USA (5.3%); Japan (5.3%)

FDI approval (US$ Million)

?

Budget deficit (% of GDP)

?

Form of the state

Republic

Head/President of the state

General Pervez Musharraf

Prime Minister

Jamali

Government

Pakistan Muslim League (Quaid-e-Azam) “King’s Party” (supported by military)

Last general elections

October 2002

Major opposition party

Muttahida Majlis-e-Amal (MMA)

Government structure responsible for labor issues

Ministry of Labour, Manpower and Overseas Pakistanis