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UNCLAS SECTION 01 OF 04 ISLAMABAD 000298 
 
SIPDIS SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EIND ETRD KTIP PHUM SOCI ELAB PREL PGOV PTER
USAID, PK 
SUBJECT: COMBATING BONDED LABOR ABUSES IN AGRICULTURE 
 
REF: A. A: 09 ISLAMABAD 02828 
     ¶B. B: 09 ISLAMABAD 02576 
     ¶C. C: 10 ISLAMABAD 00020 
 
ISLAMABAD 00000298  001.2 OF 004 
 
 
¶1. (SBU) Summary:  In Pakistan debt labor in agriculture 
stems from culturally accepted money lending traditions and a 
socio-economic disparity that contributes to maintaining the 
poverty gripping the country's rural areas, especially in the 
Sindh province.  There is a spectrum of abuse that arises 
from this debt labor system and vulnerability of bonded 
laborers is primarily linked to a legacy of powerful feudal 
landlords, and the poverty, illiteracy and migratory nature 
that characterize the laborers.  While perceptions are that 
police are inactive and apathetic, discussions and greater 
investigation have revealed otherwise.  Despite ongoing 
efforts to address bonded labor problems in the agricultural 
sector, much more work is needed, especially in light of the 
correlation between regions of high bonded labor incidence, 
intense poverty and increasing militant and extremist 
recruitment. End summary. 
 
------------------------------ 
AN INGRAINED, AGE-OLD PRACTICE 
------------------------------ 
 
¶2. (U) Bonded labor occurs when laborers are compelled to 
work against their wishes, with violations to their personal 
freedoms because of debts owed to their employers. Much 
agricultural work in Pakistan is based on a share-cropping 
model and a centuries-old feudal system, both of which lend 
directly to bonded labor. Agricultural workers take loans 
(referred to as "peshgi") from wealthy feudal land lords to 
finance agricultural activity and personal expenses, while 
typically living on the feudal lord's land. Laborers and 
their families become bonded, and debt is often passed down 
to children, keeping families in bondage for multiple 
generations. 
 
¶3. (U) A 2004 study by the Pakistan Institute of Development 
Economics (PIDE) found that debt labor abuses in agriculture 
occurred mostly in Sindh and  the southern districts of 
Punjab. These abuses appear to be due to socio-economic 
disparity between feudal lords and laborers who are mostly 
low-caste Hindus. Although the study found some incidence of 
abuse in the North West Frontier Province, it was minimal due 
to better relations between landlords and laborers who often 
belonged to the same tribe. (Note:  Few studies have been 
done on debt labor in agriculture. The Government of Pakistan 
had plans to conduct a census of bonded laborers, but after 
an initial needs assessment, difficult access to the laborers 
and resource constraints prevented the survey from moving 
forward. End note.) 
 
¶4. (SBU) Culturally, not all cases of debt are considered 
abusive and many laborers argue to maintain the loan system. 
It is important to note the spectrum of scenarios that arise 
from the peshgi/loan practice. Some laborers, though 
indebted, cite a good relationship with the landowner, and 
NGOs like the Sindh Hari Porhiyat Council (Sindh Peasant 
Employment Council) work hand in hand with "good landowners" 
to promote better working conditions for laborers on other 
properties. At the same time, many workers are illiterate, 
unable to track their debts, and have no identification 
documents. Living on the feudal lords' land increases their 
vulnerability and children often work and do not attend 
school. NGOs, law enforcement and private studies have 
reported that some landowners take advantage of workers by 
not properly documenting loan amounts, artificially inflating 
seed and fertilizer prices, or by lowering produce value and 
deducting the lower amounts from money owed. Landowners may 
restrict laborers' movement with the use of armed guards. Law 
enforcement and NGOs have also confirmed that some employers 
sell laborers to other landowners for the "price" of the debt 
owed. In extreme scenarios, when laborers speak out publicly 
against abuse, landowners have resorted to violence or 
kidnapping. 
 
--------------------------------------------- - 
PERCEPTIONS OF POLICE INACTIVITY AND COLLUSION 
--------------------------------------------- - 
 
ISLAMABAD 00000298  002.2 OF 004 
 
 
 
¶5. (U) Whether from the media or civil society, a common 
complaint is that the police do not respond or pursue the 
landowners. In conversations with police and local NGOs at 
the district and provincial level, we are gaining a better 
understanding of this. One District Police Officer (DPO) in 
Punjab expressed great frustration at his team's inability to 
take preemptive measures against abusive landlords. Only when 
a case is filed can they take action. Furthermore, many 
laborers are not aware of existing laws and resources, and 
when aware their first and utmost concern is personal 
freedom: i.e. getting off the land. Thus most cases filed by 
laborers, their families, or civil society lawyers are for 
"illegal confinement" limiting police activity to only 
rescuing the laborers off the land. In order for action to be 
taken against the landlord additional charges must be filed. 
Police report that charges are rarely filed after because 
laborers typically wish to move on, migrating to seek work on 
other lands. Other factors that prevent subsequent legal 
action are the wealth and influence of the feudal lords and a 
backlogged justice system with frequent changes in judges and 
cases that can take 2-4 years to process. 
 
¶6. (SBU) Despite low frequency of charges against landlords, 
statistics for police activity in Sindh over the last four 
years indicate increasing numbers of bonded laborer rescues. 
In 2009 police in five of Sindh's twenty-three districts 
rescued nearly 1,500 laborers from bonded labor confinement, 
up nearly 200% from 2008. DPOs in Sindh cite increasing TV 
and newspaper coverage and resulting greater awareness as 
primary reasons. 
 
¶7. (SBU) In nearly all these rescues, police acted on 
judicial mandate. Laborers' representatives approach District 
Session Courts via habeas corpus to initiate an "illegal 
confinement" case and the judge orders the police to produce 
the laborers. When asked why they do not approach police 
directly, laborers and NGOs cite police hesitation to accept 
cases and claim collusion between police and landlords. 
However, interviews with police officials reveal the 
limitations and vulnerabilities they face, as well as the 
benefits to judicial intervention. 
 
¶8. (SBU) Police in Sindh, some of whom come from the same 
communities as the laborers, communicated a real desire to 
pursue cases against abusive landlords. However, when dealing 
with powerful feudal landowners, police may receive threats 
to their jobs or even their families. While police are often 
able to secure the release of the laborers by citing court 
orders, they report difficulties in pursuing charges against 
landlords. A Sindh Deputy Inspector General of Police 
reported that, without solid evidence and a network of law 
enforcement support, an officer faces being demoted or 
transferred if he takes up a case on his own against a 
powerful landlord. As an example, in an October 2009 
high-profile case of bonded laborers taken hostage by 
landlords (Ref A), the DPO that assisted in filing criminal 
charges against the most egregious landlord was transferred 
in December to a different posting. Thus, while the use of 
judicial intervention may antagonize already weakened civil 
society-law enforcement relations, at the same time, it 
provides a power mechanism for police to justify releasing 
bonded laborers from abusive landowners. 
 
---------------------- 
WHY IS THIS IMPORTANT? 
---------------------- 
 
¶9. (SBU) Debt labor practices contribute to maintaining 
income disparity and a high incidence of poverty in the rural 
areas of Pakistan that are becoming increasingly volatile. 
Agricultural workers have few employment alternatives and 
without education their children have no opportunities for 
social advancement. Furthermore, there are indications of 
increasing extremist groups, such as Lashkar-e-Taiba, that 
are recruiting poor youth in the same areas of high bonded 
labor incidence. (Ref B) 
 
---------------------- 
COMBATING BONDED LABOR 
 
ISLAMABAD 00000298  003.2 OF 004 
 
 
---------------------- 
 
¶10. (U) Tackling bonded labor abuses in the agricultural 
sector involves many challenges. The sheer number of laborers 
involved is one. NGOs estimate 1.7 million bonded laborers in 
Pakistan, working mostly in agriculture and brick making. The 
agricultural sector alone accounts for 44% of the workforce. 
The informal nature of the work is another challenge. While 
these workers contribute nearly 20% to the GDP, labor laws do 
not permit agricultural laborers freedom of association or 
the government to regulate wages or working conditions. 
Historical power structures are another factor to consider. 
Debt labor has existed for centuries and abuses are fueled by 
the political and economic influence of the landlords who are 
often the financial hub of their communities. 
 
¶11. (U) In combating bonded labor it is necessary to address 
both the practice and the conditions of poverty and social 
disempowerment that lead to the abuses. Organizations like 
the International Labour Organisation (ILO), PIDE, the 
National Rural Support Programme, and SPARC  (all of which 
work collaborate with government agencies and smaller civil 
society organizations) have identified areas of need and 
steps forward in combating debt labor abuses. (Note: ILO in 
particular has demonstrated a solid understanding of the 
socio-economic roots of this issue, the laborers' needs, and 
the necessary interventions.) 
 
¶12. (U) In terms of immediate response, police and civil 
society report to us they are in need of assistance to 
provide temporary shelter to freed bonded laborers. Police 
often must house 30 to 60 laborers in police stations before 
presenting them to the courts the next day. Following this, 
laborers need a place to live until they move on to find more 
work. The government and NGOs operate a few camps on 
state-owned land for freed bonded laborers, but their reach 
is limited. Supporting improved protection facilities along 
with efforts to improve civil society - police / government 
alliances will contribute to enhanced victim identification 
and protection services. 
 
¶13. (U) At the root of bonded labor problems is the lending 
system which, despite  the 1992 Bonded Labour Abolition Act 
that makes it illegal, will not change overnight. Both 
workers and employers rely on it. In the brick-making sector, 
the Punjab government is issuing interest-free loans and 
establishing community committees that help monitor loan 
repayment to reduce workers dependence on their employers. 
Punjab and the ILO have also developed sample contracts to 
better regulate employer loan agreements. (Ref C)  However, 
these initiatives have yet to be implemented in the 
agricultural sector and there is great need for mechanisms 
that formalize and better regulate agricultural labor and 
money lending practices. 
 
¶14. (U) In the short term, agricultural workers need 
assistance in obtaining Computerized National Identity Cards 
(CNICs) and their children need access to education. Applying 
for a CNIC is complicated for migrant workers due to 
residency requirements, but is important because along with 
it come many basic benefits that Pakistani citizens are 
entitled to such as voting rights, ability to file a case 
with the police, and qualification for certain social welfare 
programs. The Punjab government and NGOs like Society for the 
Protection of the Rights of the Child (SPARC) have begun to 
assist in this area. Punjab, through a pilot project 
targeting the elimination of bonded labor in brick kilns has 
assisted nearly 6,000 bonded laborers to obtain CNICs. SPARC, 
with the support of the Irish charity Trocaire, has helped 
more than 10,000 bonded laborers in six districts of Sindh 
and one in Punjab to obtain CNICs. (Ref C)   However, many 
more laborers need to be reached. In addition, their children 
need access to education. NGOs propose non-formal education 
initiatives that might revolve around family working hours 
and assist children in catching up with missed schooling 
through accelerated programs. 
 
¶15. (U) In both the short and long term, economic empowerment 
programs for laborers are needed. These should be linked with 
education and skills training relevant to the agricultural 
 
ISLAMABAD 00000298  004.2 OF 004 
 
 
work these laborers know. Furthermore, raising public 
awareness and supporting organizations that work with all 
stakeholders, including landowners, to build awareness of 
labor rights and humane working conditions, will also have a 
positive impact. Police and civil society report that 
increased media coverage appears to already be having a 
positive effect. 
 
¶16. (U) Comment: Post is working to understand in greater 
detail the initiatives necessary to combat bonded labor 
abuses, as well as the international and local NGOs and the 
government agencies best equipped to implement these 
activities. Post recommends that Department of State 
assistance, such as GTIP and DRL labor grants, be more 
focused to these needs. End comment. 
PATTERSON