Industrialists have strongly criticized the proposal to increase the minimum wage in Sindh to PKR 42,000, warning of serious economic consequences. Karachi Association of Trade and Industry (KATI) President Junaid Naqi rejected the provincial government’s plan, saying it would weaken Sindh’s financial resources, hinder industrial expansion, and reduce employment opportunities.
Junaid Naqi emphasized that fiscal policies should reflect current economic realities. Citing 6% inflation in the country, he questioned the justification for such a large increase. He pointed out that the minimum wage in Punjab and Khyber Pakhtunkhwa is between PKR 37,000 and 40,000. A PKR 42,000 minimum wage in Sindh would be the highest in the country, potentially leading businesses to relocate to lower-cost areas, impacting investment and employment in Sindh.
He explained that the current PKR 37,000 monthly minimum wage translates to over PKR 61,000 per month for the employee, including EOBI, SESSI, bonuses, gratuity, leave encashment, overtime, and other benefits. The actual cost is almost double the basic salary. With 48 hours of overtime, monthly expenses exceed PKR 69,000, making Sindh’s businesses less competitive.
Junaid Naqi highlighted the financial and operational pressures on Sindh’s industries. Citing reports from the Sindh Employees Social Security Institution (SESSI) and the Public Accounts Committee, he criticized the weak enforcement of existing wage regulations, revealing that 80% of businesses in Sindh violate current wage laws. Many employees, especially in the informal sector, are deprived of overtime, leave encashment, and bonuses, often earning less than PKR 30,000 despite working 10-hour days.
Junaid Naqi stated that this wage disparity fuels social inequality and civil unrest. Businesses paying below the legal wage create unfair competition for law-abiding companies, while worker dissatisfaction breeds instability. The decline of labor unions has deprived almost 90% of workers of essential benefits.
Junaid Naqi said wage laws are futile without strict enforcement of labor laws. He warned that if rising labor costs are left unchecked, industries may be forced to relocate to areas with lower operating expenses and better infrastructure, weakening Sindh’s economy, reducing employment, and straining regional resources.
Junaid Naqi demanded that the Sindh government set the minimum wage between PKR 38,000 and 40,000, in line with national inflation and other provinces’ standards. He advocated empowering the provincial labor department to ensure compliance in both formal and informal sectors.
He proposed a phased approach towards a “fair wage” structure through negotiations between the government, businesses, and labor representatives. Junaid Naqi also stressed that the proposed Sindh Labor Code should only be implemented if it guarantees the protection of workers’ rights.
Finally, the KATI president emphasized the need to link wage regulations to the availability of industrial utilities, such as electricity and water, to maintain Sindh’s industrial competitiveness and economic viability. He appealed to the Sindh government to ground its economic decisions in realistic conditions and involve all stakeholders to safeguard the region’s financial well-being, investment climate, and employment opportunities.