WIDE LENS REPORT

The Stubborn Gender Pay Gap in Pakistan: A Barrier to Equality

13 Mar, 2025
3 mins read

Pakistan’s gender pay gap is one of the highest in the world. A recent International Labour Organisation (ILO) report reveals a stark reality: men and women are not compensated equally for their work, and the disparity is not only persistent but systemic.

The numbers tell the story of a workforce deeply divided by gender. On average, Pakistani women earn 25% less than their male counterparts for every hour worked. When wages are calculated monthly—accounting for fewer hours worked by women—the gap widens to 30%.

But the inequality isn’t just about numbers. The report highlights a troubling fact: much of this gap cannot be attributed to differences in education, experience, or skills. It’s unexplained, raising the possibility of widespread discrimination embedded in the country’s labor markets.

Compared to its neighbors, Pakistan fares poorly in bridging the gender pay gap. Sri Lanka’s gap stands at 22%, while Nepal’s is 18%. Bangladesh, strikingly, shows a reversed trend with a negative gap of -5%, where women earn slightly more than men.

These comparisons highlight the extent to which structural and cultural factors influence gender dynamics. Bangladesh, for instance, has made significant strides in empowering women in industries like ready-made garments, which employs millions of female workers. Pakistan, on the other hand, continues to lag, particularly in enabling women to participate equally in its economy.

The report also underscores a significant divide between formal and informal labor sectors. In the formal economy, where labor laws are more likely to be enforced, the gender pay gap is close to zero. Public sector jobs, in particular, show promising levels of parity, demonstrating the potential impact of policies that ensure equal pay.

But outside these regulated spaces, the story is different. In informal and household labor sectors, the gender pay gap soars to over 40%. These sectors employ a large proportion of women, many of whom lack formal contracts, legal protections, or access to unions. Their wages often reflect not just market dynamics but entrenched cultural norms that devalue women’s labor.

There is a sliver of good news. The gender pay gap has narrowed in recent years, dropping from 33% in 2018 to 25% in 2023 for hourly wages. While this is progress, it’s far from sufficient. At the current rate, achieving true pay equality could take decades, if not longer.

The reduction in the gap, however, isn’t uniform. Women in urban areas and those with higher education levels have seen more significant improvements. Rural women, often working in agriculture or as domestic laborers, remain trapped in a cycle of low pay and limited opportunities.

The gender pay gap is more than an economic issue; it’s a marker of broader inequality. It reflects deep-seated biases that shape how women’s contributions are valued—or undervalued—across society.

Pakistan has ratified the ILO Equal Remuneration Convention, 1951 (No. 100), which commits to equal pay for men and women for work of equal value. Yet, implementation remains a challenge. Weak enforcement of labor laws, limited awareness among workers, and a lack of political will have hindered meaningful progress.

Cultural norms also play a significant role. Women in Pakistan face multiple barriers to workforce participation, from limited mobility to societal expectations that prioritize domestic roles over professional aspirations. Those who do enter the workforce often encounter a “double burden,” balancing job responsibilities with unpaid care work at home.

Experts argue that addressing the gender pay gap requires a multi-pronged approach. Strengthening labor laws and ensuring their enforcement is critical, particularly in informal sectors where exploitation is rampant. Public awareness campaigns can challenge cultural stereotypes that devalue women’s work and encourage families to support women’s professional ambitions.

Education and skills training are also key. While women’s educational attainment has improved in Pakistan, it has not translated into proportional economic empowerment. Programs that equip women with marketable skills and connect them to employment opportunities can help bridge this gap.

Additionally, more transparent wage policies, pay audits, and incentives for companies to adopt gender-sensitive practices could drive change in private sectors.

The ILO’s report is a sobering reminder that Pakistan has a long way to go in achieving gender equality in the workplace. While some progress has been made, the pace of change is slow, and the challenges are immense.

For Pakistan’s women, the fight for equal pay is about more than wages—it’s about dignity, recognition, and the right to participate fully in the country’s economic life. Until the gender pay gap is addressed, true equality will remain out of reach.

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