Nike, a major importer of soccer balls has decided to stay in Pakistan but under new arrangements. According to indications available here, Nike is likely to severe its long association with Saga Sports of Sialkot and enter into new contracts with other soccer ball manufacturers.
President/CEO of Nike Inc has in a letter to the Prime Minister sent on February 13 made certain proposals in this regard, which will be discussed in a meeting scheduled to be held in the Ministry of Commerce Islamabad on April 19.
Following have been invited to attend the meeting: Secretary, Ministry of Labour & Manpower, Secretary, Ministry of Industries, Secretary, Board of Investment, Secretary, Trade Development Authority of Pakistan, Secretary, Labour, Government of Punjab, Chairman, Small & Medium Enterprise Development Authority (SMEDA), President, Sialkot Chamber of Commerce and Industry, and Safdar Sandel, Chairman, Pakistan Sports Goods Manufacturers & Exporters Association (PSGMEA).
Nike had served a notice on Saga Sports cancelling all its contracts after March this year over the issue of child labour. This had caused great concern in government circles and subsequently Nike was approached for soliciting their views. The issue it seems has now been overcome to the extent that the soccer ball importer has agreed to continue its operations in Pakistan. The modalities would be worked out in the meeting called by the Ministry of Commerce and most probably several other soccer ball manufacturers in Sialkot would now undertake the job of meeting the requirements of Nike.
Besides Nike other brand names like Adidas, Puma, Select, Derby Star and others also get their soccer balls and soccer equipment produced in Sialkot. Pakistan fetches Rs 15 billion in exports from this source alone.
Masood Khan, Ambassador and Permanent Representative in Geneva had also written a letter to the Ministry of Foreign Affairs in which he had referred to his meeting with Kari Tapiola, ILO's executive director for International Standards who had raised the issue of labour rights in Sialkot.
In particular he mentioned the case of conditions in soccer ball industry which had "resulted in Nike, a major importer of football, pulling out of Pakistan." Masood Khan had assured Tapiola that the Government of Pakistan was fully cognisant of the problem and was taking necessary steps to address issues relating to labour rights because it had a direct bearing on Pakistan's exports.
Professor Safdar Sandel, Chairman, PSGMEA had also expressed concern over Nike's decision and had regretted that it would result in unemployment as Saga Sports employed about 4,000 workers and produced six million soccer balls annually.