Amidst political upheaval, economic instability and mass inflation, workers’ rights in Pakistan are in a state of crisis.

Climate change led to heat waves followed by devastating floods in 2022, which affected 33 million people and left many without their homes or livelihoods and in need of work in the cities. Economic crisis in Pakistan has further driven down quality of life for the working class in recent months, with the cost of basic goods and amenities sky rocketing.

In a time of economic downturn post-COVID, global fashion corporations continue to extract wealth from South Asian economies and mass produce clothing for Western markets, while displacing risk away from themselves, towards labour. Factory closures or downsizing of factory capacity appears common, and suppliers are increasingly informalising workers’ employment conditions. Inflation in Asian garment producing nations is far outstripping wage increases, making living conditions increasingly precarious for workers at the bottom of supply chains. Brands with the power and money at the top continue to dictate conditions for workers, through buying decisions that squeeze suppliers to deliver orders at ever cheaper costs.

This report dives down into the situation for workers in Pakistan, as a case study on how workers have been impacted by the economic downturn globally and how in the face of increasing economic pressure employers seek to cut costs at the expense of workers. Findings show suppliers cutting costs and reducing their liability, at the expense of workers, through paying illegally low wages, unpaid overtime, not providing contractual documents, increasingly moving away from permanent to temporary contracts and using third parties to sub-contract workers, in an industry already characterised by sub-contracting across borders to evade accountability for rights violations and exploitation.

There is an urgent need for governments, employers, and brands to deliver workers’ rights in Pakistan, to stop the erosion of wages and improve access to remedy.