Multinational corporations (MNCs) operating in Pakistan refrain from fulfilling their corporate social

responsibility (CSR), and often confine themselves to earning big money and leaving the baggage for the
poor, said SHEHRI Vice Chairperson Dr Raza Gardezi.

He was speaking at a discussion on ‘Corporate Social Responsibility in the context of Pakistan’s

environment-What can the media do?” under the aegis of SHEHRI in collaboration with SOMO-Centre for
Research on Multinational Corporations held recently. He said that there is no doubt that there are many
good laws in Pakistan but every law has a loophole, and it enables the MNCs to violate them and go scot
free.

Elaborating, he said MAKRO, a Dutch company operating in Pakistan blatantly violated Pakistani law
through acquiring 20,000 sq. yard of a playground of Karachi Grammar School in the city and established
its business in utter disrespect of local laws. He said that during the era of military dictator Gen. Ziaul
Haq, the Army Welfare Trust (AWT) sold the land to the Dutch company for Rs300 million, although the
playground was not even in the jurisdiction of Cantonment Board. He said that the Dutch company
continued construction on the plot despite a status quo by the honourable court. He said in Europe and
elsewhere in the West, hypermarkets are generally allowed to operate in the suburbs.

Khadim Hussain Ansari of Badin Rural Development Society highlighted the highhandedness of another
MNC, British Petroleum, in Badin district, where he said, it is not only violating Petroleum Concession
Agreement but has badly damaged government’s infrastructure such as roads through excessive use of
heavy vehicles. He said that 86 per cent of the population in Badin district is poor while 27 per cent is
extremely poor with a monthly earning of Rs1,000 but the British company has shirked from its CSR and
failed to bring any solace to the common man.

Farhan Anwar, Technical Consultant, SHEHRI said these companies don’t even follow OECDs guidelines
for MNCs when they are operating in poor countries such as Pakistan.

Ghazah Abbasi, a researcher at The Collective for Social Science Research, pointed out that in January
2006 a child Iftikhar died and another child Shiraz lost his limbs and fingers due to auto-amputation
while as many as 20 kids were severely injured when Farooq Gharib, a factory owner in Sindh Industrial
Trading Estate (SITE) dumped toxic waste on two plots in the area owned by him. She said that after a
furore in the print and electronic media, the honourable court moved against the culprit and the latter
was not only forced to pay decent compensation to the victims through a local non-government
organisation but had to also wind up his business from the area. She regretted, small companies
continue to violate the court ruling.

Shahid Lutfi, an environmental consultant, said though Pakistan Environmental Protection Act 1997 does
exist companies often violates environmental rules and regulations.