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Gender equality

Women economic empowerment is key to Pakistan's

development
Blog • 13 Mar 2023 • Women's Economic Empowerment and Inclusive Growth

Increasing women's participation in Pakistan's labour force is beneficial to

both economic growth and gender equality. Policy interventions must identify
and alleviate barriers to women's participation by improving access to
finance, enhancing digital literacy, and addressing mobility challenges.

AUTHORS

Hina Shaikh
Senior Country Economist, Pakistan, International Growth Centre
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The lack of women's participation in Pakistan's economy is both a gender equity and
developmental concern. The economic case for focusing on women's economic
empowerment is clear: if their participation was at par with men, Pakistan's GDP could
increase by 60% by 2025. Another estimate suggests that closing the gender gap in
labour force participation could lead to a one-off 30% boost in GDP.

Globally, women form 38.8% of the labour force, but just around 20% in Pakistan, one of
the lowest in South Asia. In fact, Pakistan fares poorly on all gender-related indicators.
The Global Gender Gap Index Report 2022 ranked Pakistan at 145 out of 156 countries in
terms of women's economic participation and opportunity, at 135 for women's
educational attainment, 143 for women's health and survival, and at 95 for political
empowerment. The Global Wage Report 2018-19 by International Labour Organization
estimated the gender pay gap variation between men and women at 34%. Pakistan also
shows the largest gender gaps amongst electrical democracies in voter turn-out, with
men being 20% more likely to vote.

The constraints to women’s participation have been discussed and documented at

length. These range from the lack of a conducive policy support (such as lack of
workplace regulation, maternity leave laws, access to credit and finance) to patriarchal
mindsets and social norms that limit women’s mobility and choice to work, including
concerns of mobility and access to transport, and the burden of unpaid care and
domestic work.

How are researchers helping to find solutions to enhancing women’s empowerment? The
research community is now sharing findings from ongoing and completed work that is
providing a substantive policymaking direction. We look at some recent IGC research
and draw a list of the most compelling policy messages.

1. Investing in gender equality can help build resilience to future

shocks.

The COVID-19 pandemic and the climate change crisis is affecting women and
deepening gender inequalities within Pakistan. Even when the exposure to a hazard is
the same for all, levels of vulnerability, access to resources, and coping skills can greatly
vary across genders. This highlights the need to reduce gender gaps and protect women
from future shocks as women remain more vulnerable to the adverse impacts of health
and economic shocks.

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and vulnerable households, and especially in the face of shocks. Findings suggested that
if the challenges to female workforce participation are addressed, then developmental
and productivity benefits could accumulate at a national level. However, the notion of
disaster resilience is still considered largely gender-neutral in Pakistan. The COVID-19
pandemic showed that Pakistani women remained less likely to receive vital information
on health safety due to lower levels of education and a lower likelihood of owning a
mobile phone or having internet access. The pandemic exacerbated these
disparities, with a larger proportion of women than men being pushed into extreme
poverty.

2. Unlocking women's productivity requires a policy intervention on

multiple fronts.

Constraints to female entrepreneurship are not just financial. Women need soft skills
and training to engage in sustainable economic activity. A recent study tested if low-
cost and less intensive training to create aspirations and desire to set goals for the
future could help women micro-entrepreneurs. The study found that such interventions
had an immediate short-term impact on hard work and perseverance.

Women also face constraints in their ability to market their products and identify
marketplaces. They require digital skills and access to markets to be better equipped to
conduct business-related activities. An ongoing study by researchers based at University
of Delaware is looking at the impact of digital skills training on female labour force
participation. The intervention is aimed at women enrolled in skills training centres
situated across Punjab, Pakistan.

3. Women that are interested in work may face barriers in their job
search.

An area that has received lesser policy attention is the job search process. Data from a
study in Pakistan reveals differences in how men and women search for jobs, and
provides insight into the difficulties women face in labour market participation. These
findings indicate that a key obstruction faced by women in their job search is due to
their lack of access to networks that can provide information about job vacancies.
Potential policy solutions to address such barriers can include organising women
collectives for networking, and the creation of opportunities for firms to share job
postings outside of their networks.

4. Men
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Women’s mobility is a real concern in a society that discourages close physical contact
between opposite genders. This constrains their choices to participate in the labour
force, continue their education, or engage in other independent activities. Women’s
mobility is not just limited by the lack of infrastructure but also by women’s agency. A
recent study looked at how migration, urbanisation, and the perceived threat or the
threat of violence and harassment shapes women’s agency and mobility and
determines their access to the market, economic opportunities, and the public sphere in
an urban South Asian context. It found that in an urban context, women’s mobility is
affected by distinct patriarchal norms within communities, geographic and spatial
anxieties due to migrant status and histories of conflict. This study suggests a
differentiated employment strategy concerning women’s economic participation,
underpinned by social policy that is context-specific and sensitive to the needs of local
communities.

5. Inclusiveness in growth demands women's voices are heard.

States' effectiveness in responding to women's needs in service delivery is greatly

influenced by voter turnout inequality during elections. Ongoing research by academics
based at Yale University is helping to uncover the drivers of the gender gap in voter
turnout in the Pakistani context. This research looks at the sub-national variation in
voting patterns of women and tries to understand what explains the gap. So far,
evidence suggests that weak engagement between political parties and women voters
may be an important factor explaining low female electoral participation in urban
centres. Women's political participation is also found to be lower in big cities with
greater exposure to political violence.

IGC Pakistan is working directly with Pakistani policymakers to equip them with
knowledge and evidence to support their decision-making and design reforms. Pakistani
policymakers are also showing a growing commitment to the agenda of women’s
empowerment. With more evidence on what works, Pakistan can make progress in
empowering millions of women, lifting them and their households out of poverty.

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