Women's Economic Participation Barriers and 25% Gender Wage Disparity in Pakistan Highlighted in ILO Report
The International Labour Organization (ILO) has released a comprehensive report titled 'Pakistan Gender Pay Gap Report 2025', shedding light on the significant gender pay gap in Pakistan and proposing solutions to bridge the disparity.
According to the report, women in Pakistan earn approximately 25% less per hour and 30% less per month than their male counterparts, a gap that is significantly higher than the average observed in other lower-middle-income countries. This substantial pay gap is attributed to several structural and systemic factors.
One of the key issues is the low workforce participation of women in Pakistan. Women constitute just 13.5% of the country's workforce, with an employment rate around 23% compared to 79% for men, creating a 56 percentage point gender gap in employment.
Women are often confined to specific, lower-paid sectors and jobs, a phenomenon known as occupational segregation. This segregation, combined with the prevalence of informal work, contributes to a wider pay gap, with women earning 40% less in the informal economy due to weak legal protections and poor enforcement of labor laws.
Discriminatory practices and systemic inequality also play a significant role in the wage disparities. A significant portion of the gap cannot be explained by differences in education or experience, indicating that discrimination and systemic barriers are major factors.
Despite women in wage employment having a higher level of education and working more in formal or public sector jobs, wage disparities persist, underscoring entrenched inequality even in more regulated environments.
To address these issues, the report and accompanying National Action Plan propose several solutions. These include legal and policy reforms to align Pakistan’s wage-setting systems and anti-discrimination laws with international labor standards, particularly ILO Conventions No. 100 (Equal Remuneration) and 111 (Discrimination).
The report also emphasizes the importance of formalizing the informal economy by strengthening enforcement mechanisms and protections in informal work. It advocates for creating equal opportunities by promoting fair and transparent wage-setting, enhancing women's participation across all sectors, and removing barriers that hinder women's economic engagement.
Pakistan has reaffirmed its commitment to equal pay for equal work, with a roadmap developed through consultations involving government bodies, employers, labor representatives, and academics to ensure practical implementation. The ILO Country Director, Geir Tonstol, has reiterated institutional support for the cause.
In summary, the gender pay gap in Pakistan is driven by low female labor participation, occupational segregation, informal employment vulnerabilities, and systemic discrimination. Solutions focus on legal reforms, improved enforcement, formalization of work, and multi-stakeholder action to foster fair wages and workplace equality. These steps are vital for addressing the gender wage gap and supporting inclusive economic growth in Pakistan.
The report and action plan are seen as a vital step towards identifying and addressing the barriers that hinder women's participation in the economy. As Pakistan moves forward, addressing the gender pay gap will be crucial for fostering a more equitable and inclusive society.
- The report suggests that promoting fair and transparent wage-setting and enhancing women's participation across all sectors could help diminish the gender pay gap in Pakistan.
- The significant gender pay gap in Pakistan is not solely explained by differences in education or experience, with discriminatory practices and systemic inequality playing a substantial role.
- The importance of formalizing the informal economy by strengthening enforcement mechanisms and protections in informal work is highlighted in the report as a means to decrease the wage disparities faced by women.
- To support women's health and wellness, as well as workplace-wellness and health-and-wellness, and ensure financial stability for families, it's crucial to address the gender pay gap in business and labor sectors.
