ith SDGs’ global achievement at 17 percent, what exactly are we looking at in terms of ensuring inclusion? This remains a buzz word in low-income countries like Pakistan that have low women work force participation.

Pakistan also has one of the lowest female entrepreneurship rates in the world with only 1 percent of women choosing entrepreneurship versus 21 percent of men. While there are some social and cultural barriers to entry of women, even those who choose entrepreneurship are severely limited by access to formal banking services.

The 2020 NGO Alternative Report, on women labour and employment in Pakistan, endorsed by 32 NGOs and workers’ organisations – the first ever exclusive shadow report presented on women and labour – covered critical concerns of women in relation to their labour and employment rights as envisioned in the constitution. In response to the 2013 and 2019 Observations of the CEDAW Committee, this NGO Report draws attention to key issues emerging since the submission of the Government of Pakistan’s Fifth Periodic Report, submitted in October 2018. Key information ignored includes findings of the 2017 population census, and 2018 reports – The Annual Status of Education Report, the Labour Force Survey, the Labour Force Participation Rate, and the Population Demographic and Health Survey.

The responses by the government in the Fifth Periodic Report gave the impression that the government had fully complied with CEDAW articles in letter and spirit, especially Article 11 covering the women in labour, employment and agriculture and rural women. The on-ground facts are different. We appreciate the efforts of the government to ensure women’s inclusion in the informal economy and taking lead in setting precedents and the steps taken by the provinces e.g. the enactment of the Sindh Home Based Workers Act 2018, Sindh Home Based Workers Policy 2016 , Punjab Home Based Workers Policy 2017 and Home Based Workers Law 2023, Khyber Pakhtunkhwa Home Based Workers Act 2021 and Balochistan Home Based Workers Act 2022 along with the Punjab Domestic Workers Policy 2015, Punjab Protection of Domestic Workers Act 2019 , Sindh Women Agricultural Workers, Act 2019.

These laws have been in place since 2018. Yet, these do not represent the national state of affairs when it comes to the protection of women in labour – formal or informal – and representation in labour force participation.

Despite government claims regarding the inclusion of women in the workforce, there are many unresolved issues that need to be addressed. There is some evidence of regression in the women workforce. The LFPR for women dropped from 22 percent to 20 percent in 2018.

Women home based workers play an essential role in the economy through the production of goods and services for many markets. However, they are usually not registered with the relevant authorities including tax, labour and social services. Moreover, weak management practices and lack of independent bank accounts for the enterprises mean their own accounts or self-employed businesses are often categorised as “informal enterprises.” Their growth has been hindered primarily by a lack of access to financial services. Covid-19 also had a detrimental effect on the progress of women-led enterprises. A huge work force working as hidden workers has yet to show in labour statistics.

Informal workers in Pakistan often earn around or below the legal minimum wage. Women are particularly vulnerable because they are largely concentrated in the informal sector in home-based work and have lower overall average wages than their male counterparts. 

The government of the Punjab conducted the first ever budgeted allocated provincial survey on HBW and domestic workers. It validated the figures of 80 percent women working in the garment and textile sectors within home boundaries. The findings of the survey have yet to be made public and included in the PLFS. This raises the question that under the SDGs commitment of Goals 5 and 8 to increase the women workforce to 45 percent, what steps have been taken by other provincial governments for making the data more inclusive. There has to be an inclusive approach in getting the data collated and making it more representative. For this an inclusive approach at planning level is required. The Gender Parity Report published by the Women Development Department, Punjab, is an important document to gauge data on yearly basis and plan accordingly. Yet, a more holistic approach is required in planning, implementation and monitoring.

The informal sector comprises an estimated 40 percent to 50 percent of Asia’s total labour force. In some countries the estimates are as high as 90 percent.

Informal employment is widespread in most developing countries. Although associated with low productivity in low-income countries, it contributes to non-agriculture gross domestic product.

Globally, 260 million people are employed in homebased work, including 35 million in developed countries.

While some of the very poor are engaged in subsistence activities, some informal workers also have profitable business ventures. Informal workers in Asia are increasingly vulnerable, occupying hazardous, low-income jobs with poor working conditions.

Pakistan with a 74 percent informal economy, with 20 million HBWs, lacks adequate social protection coverage, with most informal workers unrecognised by official policies and in need of better labour protection and social welfare. Informal workers in Pakistan often earn around or below the legal minimum wage. Women are particularly vulnerable because they are largely concentrated in the informal sector in home-based work and have lower overall average wages than their male counterparts. Beyond short-term safety nets or targeted social assistance, government support is needed to provide basic economic security in terms of wages and regularity of work.

Despite increased risk and vulnerability, only 27 percent of the global population has access to comprehensive social protection systems. Less than 25 percent of the working population in Asia and the Pacific are covered by social insurance, such as pensions or healthcare benefits.

Policy reforms that improve social insurance and pension schemes for both formal and informal sectors with impetus on social protection for informal workers need to address social protection gaps ranging from issues of financing, design, governance and political economy of social protection for informal workers. There is a need for analysis from countries with distinct social protection systems in place and to analyse the institutional aspects and design challenges to improve programme implementation and expand social protection systems for informal workers.

The writer is a gender and labour expert. She can be reached at lailazharali@gmail.com