Pakistan tightens import rules on forced labour to address US tariff concerns

The government has amended the Import Policy Order, 2022, to restrict imports of goods produced through forced or compulsory labour, as Pakistan seeks to address concerns raised in a US trade investigation that could lead to higher tariffs, The Express Tribune reported. 

The Economic Coordination Committee (ECC) approved the inclusion of a formal definition of forced labour based on the International Labour Organisation’s Forced Labour Convention, 1930.

Under the amendment, forced labour will mean forced or compulsory labour as defined in paragraph 1 of Article 2 of Convention No. 29.

The change expands an earlier provision that barred imports of goods mined, produced or manufactured, wholly or partly, through forced labour. The revised language explicitly covers compulsory labour and provides a standard definition for enforcement.

Pakistan is among 60 economies investigated by the US Trade Representative under Section 301 of the Trade Act of 1974 over alleged failure to prohibit imports of goods made with forced labour.

The probe was launched after the US Supreme Court withdrew reciprocal tariffs, with Pakistan seeking to avoid the possibility of fresh trade restrictions from the Trump administration.

The Ministry of Commerce told the ECC that the Import and Export Control Act, 1950, authorises the federal government to prohibit or regulate the import and export of specified goods through policy orders.

The earlier ban was introduced after the Ministry of Overseas Pakistanis and Human Resource Development called for a clear legal framework covering goods made through forced labour in any country.

The ministry later sought additional amendments, arguing that the existing provision needed a precise definition and an effective implementation mechanism.

Following consultations among the Ministry of Commerce, Ministry of Overseas Pakistanis and Human Resource Development and Ministry of Law, it was agreed that the Import Policy Order should contain a self-contained definition aligned with Pakistan’s obligations under ILO conventions.

The ECC approved the proposal submitted by the Ministry of Commerce under the title Amendments in Import Policy Order, 2022 in pursuance to Pakistan’s Commitments under International Labour Organisation Conventions.