Accounting for the Institution of Peshgi: A Case Study of Vernacular Accounting Practices in a Pakistani Brick Kiln

Purpose: This thesis explores vernacular accounting practices in relation to the institutionalised practice of bonded labour (the Peshgi system) in Pakistan’s brick kiln industry. Despite the extensive focus on accounting systems across diverse industries, vernacular accounting practices related to work arrangements such as the Peshgi system, remain underexplored. This thesis explores the historical development of the Peshgi system as an institutional work arrangement and how it impacts local accounting practice in the informal sector and its influence on labour dynamics in the brick kiln industry.

Theoretical and Methodological Approach: This thesis employs a two-stage analysis based on a theoretical framework grounded in Historical Institutionalism and Vernacular Accounting Systems (VAS). Recognising accounting as a culturally embedded and socially constructed phenomenon, Historical Institutionalism provides a means to explore institutionalised practices by tracing its origins and highlighting how historical forces shape contemporary VAS. Accounting for Peshgi presents an alternative to standardised double-entry bookkeeping. Therefore, the thesis adopts a case study approach to study the accounting records of the Good Bricks Company situated in the Pakistani Brick Belt.

Findings: This thesis provides a critique of current understandings of the Peshgi system as modern slavery, particularly the concept of debt bondage. Debt bondage is characterised by the presence of exploitation in the form of threat, violence, coercion, deception, and/or abuse of power. In this thesis, the Peshgi system emerges, not merely as an archaic remnant, but as a dynamic manifestation of historical contingencies including colonial rule and subsequent postcolonial Partition. On one hand, the bonded labourer is rendered visible in the accounting records, and the repayment of debt is revealed through an intricate system of accounts. On the other hand, the family members and children of the bonded labourer are not accounted for. While the VAS represents a routinised and institutional practice with enabling potential for the Peshgi labourer, it is silent on other labourers in the brick kiln.

Research contributions: The thesis reveals that VAS are a significant phenomenon in some settings. The Peshgi system in Pakistan’s brick kilns offers insights into how accounting shapes labour dynamics and perceptions of bonded labour as exploitative or as an historic and conventional practice. The study expands the literature on vernacular accounting practices by exploring a novel context and underscoring the ongoing influence of colonial histories on contemporary accounting.

Research limitations: The impact of the COVID-19 pandemic during the research design phase impacted the ability to conduct interviews. Instead, the thesis relies on an interpretation of accounting records which presented a rich data source to study accounting for Peshgi.

Future research: Future research could extend the analysis to brick kilns in other contexts with a different historical trajectory including regions beyond the “Brick Belt”. Exploring contexts where Peshgi is not a feature of work arrangements would offer insights into other forms of labour relations within the brick kiln industry. Investigating brick kiln operations in different contexts such as non-British colonies would provide a contrast to the effects of the Partition on socio-economic practices. Future research would benefit from incorporating interviews with bonded labourers and families to understand their perceptions of Peshgi, especially the understanding from women and children within the brick kiln industry.