INP-WealthPk

Increasing women's workforce participation to enhance Pakistan’s economic growth

March 29, 2023

Ayesha Mudassar

Pakistan has enormous untapped potential to enhance economic growth by encouraging the participation of women in the labour force. Talking to INP-WealthPK, Dr. Mariam Mohsin, Assistant Professor at the Pakistan Institute of Development Economics (PIDE), said GDP could increase by 60 percent by the year 2025 if the female labour force becomes equal to the male working population.

She said despite making half of the country’s population, women had a remarkably low participation rate of only 21 percent in the current workforce  and only 25 percent of women with a university degree work.  In Balochistan, the female labour force participation is recorded at 4.9 percent, which is shockingly low.

Pakistan has one of the lowest rates of women entrepreneurs in the world. Women own only 8 percent of micro, small and medium enterprises (MSMEs), she said. According to the Global Gender Gap Index Report 2022, Pakistan ranks 145 out of 146 countries for female economic participation and opportunity.

As per the International Labour Organization (ILO), the Female Labour Force Participation (FLFP) rates in Pakistan are very low, ranging from 14-21.7 percent over the period 1990-2019. Discussing the reasons, the PIDE assistant professor said discriminatory social norms, lack of support, rigid working culture along with lack of affordable and quality childcare centres had made a large percentage of women unproductive.

Dr. Zainab Naeem, Assistant Research Fellow at the SDPI, said it would be in the best interest to enhance female participation in business activities. Women need encouragement to initiate start-ups and use innovative ideas to solve persistent economic problems plaguing the country.

“To encourage female participation in the labour force, prudent measures must be taken to provide a level playing field. These include the implementation of pro-women laws, expansion of financial access for women, flexible working hours, and better childcare facilities. In addition, we must acknowledge the participation of rural women in the agriculture sector,’’ she added.

Credit: Independent News Pakistan-WealthPk