Pakistan has one of the largest gender pay gaps (GPG) in the world, with women earning significantly less than men across most sectors. A recent report by the International Labour Organisation (ILO) reveals that the wage gap in Pakistan is largely unexplained by differences in skills, education, or job characteristics, indicating deep-rooted gender-based discrimination.
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The report highlights that Pakistan’s GPG remains higher than that of many other South Asian countries. In Sri Lanka, the gender wage gap based on hourly wages is 22%, in Nepal, it stands at 18%, and in Bangladesh, the gap is reversed at -5%, meaning women earn slightly more than men. In contrast, women in Pakistan earn between Rs700 and Rs750 for every Rs1,000 earned by men, translating to a 25% pay gap for hourly wages and 30% for monthly wages.
Despite these figures, the report notes that the wage gap in Pakistan has been shrinking. In 2018, the GPG stood at 33%, showing a gradual decline over time. However, disparities remain widespread, particularly in unregulated sectors.
Sectoral Wage Disparities
The extent of the gender pay gap in Pakistan varies significantly across different employment sectors. In the formal sector, where labour laws are enforced, wage differences are minimal, reflecting a near-zero GPG. The public sector also shows relatively lower disparities due to stricter employment regulations.
However, the situation is starkly different in informal and household sectors, where the pay gap exceeds 40%. These sectors lack oversight and labour protections, leaving female workers particularly vulnerable to wage exploitation. The report suggests that stricter implementation of existing labour laws could help reduce this inequality.
The gender pay gap serves as a measurable indicator of economic inequality. Most governments worldwide have enacted laws to guarantee equal remuneration for men and women, and Pakistan is a signatory to the ILO Equal Remuneration Convention, 1951 (No. 100). Despite this, weak enforcement and socio-cultural barriers continue to restrict women’s earnings.
Barriers to Wage Equality
The ILO report identifies several key barriers contributing to the persistent wage gap in Pakistan. Discriminatory hiring practices, limited access to higher-paying jobs, and lower participation in the labour force are among the primary factors. Older women and low-income workers face the most severe disparities, with their wages falling even further behind men’s.
Weak compliance with labour laws exacerbates the problem. Many employers fail to implement equal pay policies, and women working in unregulated industries often lack formal contracts or avenues to demand fair wages. Additionally, women’s disproportionate responsibility for unpaid care work further limits their economic opportunities.
Experts suggest that gender-neutral job evaluations, adjustments to the minimum wage, and stronger labour law enforcement could help bridge the pay gap. Addressing these systemic inequalities would not only benefit women but also contribute to overall economic growth.
The Need for Policy Reforms
To create a more inclusive labour market, Pakistan must prioritize policy changes that promote gender wage equality. Strengthening legal protections, improving wage transparency, and introducing targeted economic policies could significantly reduce wage disparities. The ILO report calls for concrete measures, such as mandatory pay audits, increased representation of women in leadership roles, and enhanced financial support for female entrepreneurs.
By addressing these issues, Pakistan has the opportunity to close its gender pay gap and empower women to reach their full economic potential. Ensuring equal pay for equal work is not just a matter of fairness but a crucial step toward sustainable economic development.