Women’s Economic Empowerment in Pakistan: Progress and Obstacles

 
 
 

Women’s economic empowerment is a critical factor in Pakistan’s overall development and progress towards gender equality. This comprehensive analysis delves into the multifaceted aspects of women’s economic participation in Pakistan, examining both the strides made and the persistent challenges that hinder full empowerment.

Historical Context

To understand the current state of women’s economic empowerment in Pakistan, it’s essential to consider the historical and cultural context. Since its independence in 1947, Pakistan has grappled with the complex interplay of Islamic principles, cultural traditions, and modernization efforts. The status of women has been a central point of debate, with various regimes implementing policies that have alternately advanced or restricted women’s rights and economic participation.

Progress

Increased Education Opportunities

Education is fundamental to economic empowerment, and Pakistan has made significant strides in this area:

Female literacy rate increase: From 35.4% in 2001 to 49.6% in 2024.

Enrollment rates: Primary school enrollment for girls has risen from 67% in 2012 to 84.37% in 2021.

Higher education: Women now constitute about 48% of university students, up from 36% in 2001.

Targeted initiatives: Programs like the Punjab Education Sector Reform Program have provided stipends to girls in rural areas to encourage school attendance.

Legal and Policy Reforms

Several key legislative changes have been implemented to support women’s economic rights:

Protection against Harassment of Women at the Workplace Act (2010): Provides a comprehensive framework for addressing workplace harassment.

Women’s Property Rights Act (2020): Aims to secure women’s right to inheritance and property ownership.

Maternity and Paternity Leave Act (2020): Mandates paid maternity leave for 180 days and paternity leave for 30 days in the public sector.

The Punjab Fair Representation of Women Act (2014): Ensures 33% representation of women on all boards of statutory organizations and public sector companies.

Microfinance Initiatives

Microfinance has emerged as a powerful tool for women’s economic empowerment:

The Kashf Foundation: Has disbursed over PKR 202 billion in loans to women entrepreneurs since its inception in 1996.

Akhuwat: Provides interest-free microloans, with women constituting 38% of its borrowers.

First Women Bank: A specialized bank focusing on women’s financial needs and entrepreneurship support.

National Rural Support Programme (NRSP): Has organized over 3.6 million rural women into community organizations for economic activities.

Increased Labor Force Participation

While still low compared to global standards, women’s participation in the formal economy has shown improvement:

Labor force participation rate: Increased from 16.1% in 2000 to 21.9% in 2020.

Sectoral distribution: Women’s employment has diversified, with increasing participation in services (41.6%) and industry (19.1%) sectors.

Quota systems: Many public sector jobs now have quotas for women, ranging from 5% to 15%.

Digital Inclusion

The digital revolution has opened new avenues for women’s economic participation:

Mobile banking: Services like JazzCash and EasyPaisa have improved financial inclusion for women.

E-commerce: Platforms like Daraz and PakWheels have enabled women to sell products and services online.

Freelancing: Pakistan ranks as the 4th largest country for freelancing, with women constituting a growing segment of this workforce.

Tech initiatives: Programs like “Women in Tech” by Circle Pakistan aim to increase women’s participation in the tech industry.

Obstacles

Cultural and Social Norms

Deeply ingrained societal attitudes continue to pose significant barriers:

Patriarchal mindset: The belief that women’s primary role is in the home persists, particularly in rural areas.

Honor culture: Concerns about family honor can restrict women’s mobility and economic activities.

Early marriages: Despite legal restrictions, early marriages continue to curtail girls’ education and economic opportunities.

Male guardianship: The practice of male family members controlling women’s decisions remains prevalent in many communities.

Limited Access to Resources

Women face systemic barriers in accessing critical economic resources:

Financial exclusion: Only 7% of women in Pakistan have a bank account, compared to 35% of men.

Land ownership: Women own less than 3% of the land in Pakistan, despite legal rights to inheritance.

Credit access: Women often lack collateral and face higher rejection rates for loans.

Technology gap: 38% of women in Pakistan own a mobile phone, compared to 65% of men.

Safety and Mobility Concerns

Security issues significantly impact women’s economic participation:

Public transportation: Lack of safe and reliable public transport limits women’s ability to commute to work.

Workplace harassment: Despite legal protections, 93% of women report experiencing sexual harassment in public spaces.

Restricted movement: Social norms often prevent women from traveling alone, limiting job opportunities.

Unpaid Care Work

The disproportionate burden of domestic responsibilities hinders women’s economic engagement:

Time poverty: Women in Pakistan spend an average of 5 hours per day on unpaid care work, compared to 30 minutes for men.

Childcare facilities: Lack of affordable childcare options forces many women to choose between work and family responsibilities.

Double burden: Employed women often face the expectation to manage both professional and domestic duties.

Gender Pay Gap

Wage disparities persist across sectors:

Overall gap: Women in Pakistan earn approximately 34% less than men for similar work.

Sectoral differences: The gap is particularly pronounced in agriculture and informal sectors.

Occupational segregation: Women are overrepresented in lower-paying jobs and underrepresented in management positions.

Limited Representation in Decision-Making

Women’s underrepresentation in leadership roles hampers policy changes:

Political representation: Despite a 17% quota, women hold only 20% of seats in the National Assembly.

Corporate leadership: Women occupy less than 5% of board positions in listed companies.

Public sector: Only 5.4% of federal secretaries are women.

Informal Sector Vulnerability

A large proportion of women work in the informal economy, facing unique challenges:

Lack of legal protection: Informal workers are often excluded from labor laws and social security benefits.

Exploitative conditions: Women in informal sectors face long working hours, low wages, and poor working conditions.

Economic shocks: The COVID-19 pandemic disproportionately affected women in informal employment, highlighting their vulnerability.

Moving Forward – Recommendations

Education and Skills Development

Increase investment in girls’ education, particularly in rural areas.

Promote STEM education for girls to prepare them for future job markets.

Develop vocational training programs tailored to women’s needs and market demands.

Legal and Policy Implementation

Strengthen enforcement mechanisms for existing laws protecting women’s rights.

Introduce gender-responsive budgeting at all levels of government.

Implement policies to promote work-life balance and shared domestic responsibilities.

Financial Inclusion

Develop financial products and services tailored to women’s needs.

Promote digital financial services to overcome mobility and cultural barriers.

Increase women’s financial literacy through targeted education programs.

Entrepreneurship Support

Establish dedicated funds and incubation centers for women entrepreneurs.

Provide mentorship and networking opportunities for women in business.

Simplify business registration processes and offer tax incentives for women-owned enterprises.

Challenging Social Norms

Launch nationwide awareness campaigns promoting women’s economic rights.

Engage religious and community leaders in promoting women’s empowerment.

Implement school curricula that challenge gender stereotypes from an early age.

Improving Workplace Conditions

Enforce anti-harassment laws and establish grievance mechanisms in all workplaces.

Promote flexible work arrangements to accommodate women’s care responsibilities.

Implement pay transparency measures to address the gender wage gap.

Political and Corporate Leadership

Introduce quotas for women in senior management positions in both public and private sectors.

Provide leadership training and mentorship programs for aspiring women leaders.

Highlight and celebrate successful women role models across various fields.

Conclusion

Women’s economic empowerment in Pakistan is a complex and multifaceted issue that requires sustained effort and collaboration across all sectors of society. While progress has been made, particularly in education and legal reforms, significant obstacles remain deeply entrenched in cultural norms and systemic inequalities. By addressing these challenges comprehensively and persistently, Pakistan can unlock the full potential of its female workforce, leading to more inclusive, sustainable, and robust economic growth for the entire nation.

The path forward requires not only policy changes and economic initiatives but also a fundamental shift in societal attitudes towards women’s roles and capabilities. As Pakistan continues to navigate the delicate balance between tradition and modernization, the economic empowerment of women will be a crucial factor in determining the country’s future prosperity and social progress.

This article is written by Radma Nouman. Radma is a research analyst at IMARAT Institute of Policy Studies (IIPS).

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