PAKISTAN continues to struggle with gender inequality in its labour market. A new report by the ILO shows just how disparate incomes in the country’s workforce are. Women earn a mere Rs750 for every Rs1,000 that men make per hour of work, representing a 25pc gender pay gap that rises to 30pc when calculated on monthly wages. This places our gender wage inequality among the highest in the region, significantly worse than Sri Lanka (22pc), Nepal (18pc), and Bangladesh (-5pc). What is particularly troubling is that this disparity cannot be explained by differences in education, skills or job sectors. The vast majority of the gap is attributable to what the ILO diplomatically terms “unexplained factors” — more plainly, discrimination. This discrimination is most pronounced in informal and household employment sectors, where the pay gap exceeds 40pc.

There are, however, rays of hope. The gender pay gap has decreased from 33pc in 2018 to 25pc in 2021. More importantly, the gap nearly disappears in the formal economy and public sector, where labour laws are more rigorously enforced. This contrast offers a clear roadmap for addressing the problem. Pakistan needs to make certain that its provincial legislation is updated to fully comply with ILO Convention No 100, ensuring that “remuneration” encompasses all forms of compensation. Only Balochistan has explicitly incorporated the principle of equal pay for work of equal value — other provinces must follow suit and implement gender-neutral job evaluation systems. Additionally, the limitations on female employment in certain sectors should be critically reviewed, maternity leave policies harmonised, and childcare services expanded. Most crucially, existing labour laws must be enforced through robust inspection systems. The economic cost of gender inequality extends far beyond immediate wage differences. When half the population faces systemic barriers to fair compensation, the entire economy suffers. The path forward is clear; the question is whether we have the political will to take it.

Published in Dawn, March 14th, 2025