Pakistan – Human rights due diligence

By Daniel Morris | 7. February 2022

CHAPTER 3: National Action Plan Priority Areas and Proposed Actions

3.2. NAP Priority Areas

3.2.1. Financial Transparency, Corruption and Human Rights Standards in Public Procurement Contracts

Proposed Actions

Federal (page 18)

‘10. Review and update the Public Procurement Regulatory Authority Rules to incorporate human rights due diligence as a key criterion in the bidding and evaluation process, and give preference to businesses that demonstrate actions taken to meet their human rights obligations.

Performance indicator(s): (i) Updated rules incorporating human rights due diligence

UN Guiding Principle(s): 1, 2, 3, 4, 5, 6, 8, 9

Relevant SDG(s): Goal 8 – Decent Work and Economic Growth; Goal 9 – Industry, Innovation, and Infrastructure; Goal 16 – Peace, Justice and Strong Institutions’

This information is also covered under Appendix 1: Implementation Plan, Proposed Action 10 designating the Ministry of Law and Justice, the Ministry of Human Rights, the Public Procurement Regulatory Authority as Leading Entities, and designating the Provincial Law Departments; Provincial Human Rights Departments; Ministry of Commerce; Provincial Commerce Departments; Ministry of Industries and Production; Provincial Industries & Production Departments; Federal Cabinet; Provincial Governments; NGOs & INGOs with relevant expertise on public procurement; legal experts as Additional Entities (page 46).

3.2.3. Human Rights Due Diligence (pages 24-25)

‘As established during the NBA and consultative process, the concept of human rights due diligence in Pakistan currently lacks a legislative framework. An anticipated challenge in the implementation of human rights due diligence is uncertainty and reluctance amongst businesses regarding the regulatory requirements and potential costs of abiding by human rights due diligence standards. The responsibility to respect human rights applies to all businesses irrespective of their size. However, effective human rights due diligence frameworks account for the differences between the sectors, operating contexts, and circumstances of different kinds of business enterprises, and the potential severity and scope of their human rights impacts. Consequently, the scale and complexity of human rights due diligence actions undertaken by different enterprises may vary.

Human rights due diligence is an increasingly prominent area of discussion around the globe, not as a tick-box compliance exercise, but as a vital means to obtaining better human rights outcomes. It is anticipated that export markets will be negatively affected in countries which fall behind in addressing human rights violations across their supply chains. A pragmatic mix of human rights due diligence mechanisms, including the adoption of voluntary and common standards by businesses, as well as the development of a legislative and regulatory framework, will support the strengthening of a sustainable and resilient Pakistani economy. The progress of mandatory human rights due diligence legislation around the globe, especially in important trading partners, will be closely followed by the Government of Pakistan. Pakistan benefits from trade schemes such as GSP+, and the continuous and improved protection of human rights in business activity will only serve to further strengthen Pakistan’s international trading relationships.

Consistent Federal and Provincial coordination will be required to effectively conduct oversight and monitoring of compliance with human rights due diligence expectations. Progress in this regard will require strong communication and cooperation between relevant Ministries, Provincial Departments, and regulatory bodies for the establishment and oversight of human rights due diligence standards and guidelines, followed by the gradual development of a legislative framework.’

Proposed Actions

Federal (pages 25-26)

‘31. Develop policy, including a proposed regulatory model, on the requirement of human rights due diligence for the approval of large-scale projects where the business activity poses a significant risk to the rights of a community at large, and incorporate into relevant existing Rules and Guidelines.

Performance indicator(s): (i) Policy development; (ii) Incorporation into relevant existing Rules and Guidelines

UN Guiding Principle(s): 1, 2, 3, 4, 5, 6, 8, 17, 23

Relevant SDG(s): Goal 8 – Decent Work and Economic Growth; Goal 10 – Reduced Inequalities; Goal 12 – Responsible Consumption and Production; Goal 16 – Peace, Justice and Strong Institutions’

This information is also covered under Appendix 1: Implementation Plan, Proposed Action 31 designating the Ministry of Commerce, the Ministry of Human Rights, the Ministry of Industries and Production, the Provincial Industries and Production Departments as Leading Entities, and designating the Provincial Commerce Departments, the Provincial Human Rights Departments, the Board of Investments, the Pakistan Environmental Protection Agency, the Ministry of Energy, the Provincial Women Development Departments as Additional Entities (page 35).

‘32. Conduct feasibility study of human rights certification and provision of market incentives for businesses which demonstrate respect for human rights across their operations, including conducting human rights due diligence and publicising their efforts. Performance indicator(s): (i) Feasibility study report UN Guiding Principle(s): 1, 2, 3, 8 Relevant SDG(s): Goal 8 – Decent Work and Economic Growth; Goal 10 – Reduced Inequalities; Goal 12 – Responsible Consumption and Production; Goal 16 – Peace, Justice and Strong Institutions 33. Conduct feasibility study on the future enactment of mandatory human rights due diligence legislation in Pakistan, studying the legislative, regulatory, and economic framework in this regard.

Performance indicator(s): (i) Feasibility study report

UN Guiding Principle(s): 1, 2, 3, 8

Relevant SDG(s): Goal 5 – Gender Equality; Goal 8 – Decent Work and Economic Growth; Goal 10 – Reduced Inequalities; Goal 12 – Responsible Consumption and Production; Goal 16 – Peace, Justice and Strong Institutions’

This information is also covered under Appendix 1: Implementation Plan, Proposed Action 32 designating the Ministry of Commerce and the Ministry of Industries and Production as Leading Entities (page 55).

‘33. Conduct feasibility study on the future enactment of mandatory human rights due diligence legislation in Pakistan, studying the legislative, regulatory, and economic framework in this regard.

Performance indicator(s): (i) Feasibility study report

UN Guiding Principle(s): 1, 2, 3, 8

This information is also covered under Appendix 1: Implementation Plan, Proposed Action 33 designating the Ministry of Commerce and the Ministry of Industries and Production as Leading Entities (page 56).

‘34. Conduct a study on the potential impact of the future enactment of mandatory human rights due diligence legislation by major trading partners, such as the European Union, on Pakistan’s competitiveness in export markets, inflows of foreign direct investment, Pakistan’s role in global supply chains, and schemes such as GSP+.

Performance indicator(s): (i) Assessment report

UN Guiding Principle(s): 1, 2, 3, 8, 9

Relevant SDG(s): Goal 8 – Decent Work and Economic Growth; Goal 12 – Responsible Consumption and Production; Goal 17 – Partnerships for the Goals’

This information is also covered under Appendix 1: Implementation Plan, Proposed Action 34 designating the Ministry of Commerce as Leading Entity (page 56).

Federal and Provincial (page 27)

‘35. Develop and launch a Human Rights Due Diligence Partnership Project with the private sector, for the purpose of establishing a framework and standards for human rights due diligence reporting.

Performance indicator(s): (i) Launch of Partnership Project

UN Guiding Principle(s): 2, 3, 11, 12, 15, 17, 23

This information is also covered under Appendix 1: Implementation Plan, Proposed Action 35 designating the Federal & Provincial Governments, the Ministry of Human Rights, the Provincial Human Rights Departments as Leading Entities, and designating the Ministry of Climate Change; Ministry of Commerce and Textile; Provincial Commerce Departments; Ministry of Communications; Provincial Communications Departments; Ministry of Energy; Provincial Energy Departments; Ministry of Finance, Revenue and Economic Affairs; Ministry of Industries & Production; Ministry of Law & Justice; Provincial Law Departments; Ministry of Inter-Provincial Coordination, Pakistan Environmental Protection Agency; Ministry of Health; Provincial Health Departments; Federal and Provincial Ombudspersons as Additional Entities (page 57).

‘36. Establish voluntary and common standards for conducting and reporting human rights due diligence in business activity, applicable to both the direct operations and across the value chains of public and private enterprises.

Performance indicator(s): (i) Development and dissemination of voluntary standards in line with international best practices

UN Guiding Principle(s): 1, 2, 3, 11, 12, 15, 17, 23

This information is also covered under Appendix 1: Implementation Plan, Proposed Action 36 designating the Provincial Governments and the Ministry of Human Rights as Leading Entities, and designating the Ministry of Law and Justice; Ministry of Industries and Production; Ministry of Commerce; Provincial Human Rights Departments; Provincial Law Departments; Provincial Commerce Departments; Provincial Industries and Commerce as Additional Entities (page 58).

CHAPTER 4: State Expectations of Business Enterprises (pages 38-39)

‘[…]2. Ensure the elimination of child labour, forced or bonded labour, and all forms of modern slavery from their business operations and supply chains. This may be expedited through the utilisation of effective and thorough human rights due diligence […]

6. Establish adequate human rights due diligence mechanisms to identify, prevent, and remedy human rights impacts. Human rights due diligence should consider both internal risks that stem directly from business operations as well as external risks, which relate to all other entities that the business work with across their operations or are linked with through their value chains. Human rights due diligence should be carried out before commercial operations and business activities, proportionate to the size and scope of the enterprise and the scale and complexity of its potential human rights impacts, and on a continuous basis to ensure that integrated findings from impact assessments shape future business decisions. Businesses should also ensure that the risks identified through due diligence and corrective actions taken are adequately reported and communicated to stakeholders, preferably in the form of an annual human rights due diligence report.’