mid Pakistan’s ongoing debt crisis, economic vulnerabilities have intensified for the most marginalised segments of society, particularly home-based workers (HBWs). As the country grapples with a strained economy and austerity measures, women HBWs bear the brunt of an increasingly hostile economic environment. Although legislative advancements have been made, with Sindh and the Punjab passing laws that recognise and aim to protect HBWs, the absence of an effective social protection framework exacerbates the precariousness of their livelihoods.

Pakistan’s mounting debt has led to austerity-driven economic policies that severely limit public spending, including on social welfare programmes. This impacts HBWs disproportionately as they are largely excluded from formal social security systems. In the absence of targeted relief efforts for these workers, the burden of debt servicing trickles down to the most vulnerable, increasing their reliance on informal borrowing to meet basic health and living needs.

While the Sindh Home-Based Workers Act (2018) and Punjab Home-Based Workers Act (2023) along with KP and Balochistan Acts 2021 and 2022 respectively, represent progress, implementation remains weak. These laws were designed to offer labour rights and protections, but without concrete social protection mechanisms, such as access to healthcare, maternity benefits and pensions, women HBWs remain trapped in a cycle of poverty. The challenge now is translating legislative recognition into meaningful enforcement and financial safeguards.

With the absence of social protection mechanisms, women HBWs continue to lack access to social protection mechanisms that could mitigate the risks they face, including health hazards and economic insecurity. The existing social safety nets, such as the Benazir Income Support Programme, are not adequately tailored to the specific needs of these HBWs. There is an urgent need for inclusive social protection systems that offer health insurance, pensions and child support to home-based workers, particularly women, to safeguard their financial security in the face of the national debt crisis.

Lack of comprehensive social protection for HBWs underscores the broader issue of economic inequality in Pakistan. As the debt crisis worsens, investing in social protection for marginalised workers, especially women in the informal economy, is critical to fostering economic resilience. Recognising HBWs as legitimate contributors to the economy and providing them with access to social safety nets is not just a matter of justice but also a smart economic strategy in times of financial uncertainty.

Lack of social protection for women HBWs also hinders the country’s progress toward achieving several key SDGs, including:

SDG 1: No Poverty

Women HBWs remain at high risk of poverty due to their exclusion from social protection schemes. By failing to provide economic safeguards, Pakistan risks slowing its progress toward poverty reduction, especially in the context of economic instability brought about by the debt crisis.

Women HBWs are often invisible in national labour statistics. Despite policy provisions, they remain excluded from social security schemes and economic protections.

SDG 5: Gender Equality

Achieving gender equality requires addressing the specific challenges faced by women in the informal economy. The economic and social marginalisation of women HBWs negates the commitment to ensuring women’s full and effective participation and equal opportunities for leadership, as outlined in SDG 5.

SDG 8: Decent Work and Economic Growth

HBWs contribute significantly to Pakistan’s informal economy, yet they lack access to decent work, a core focus of SDG 8. Without incorporating HBWs into formal labour protections, including safe working environments and fair wages, the goal of decent work for all remains unmet.

SDG 10: Reduced Inequality

Women HBWs are among the most marginalised workers in Pakistan, facing economic inequality and lack of representation. SDG 10’s goal of reducing inequalities, particularly for marginalised groups, cannot be achieved without extending labour rights and social protection to women HBWs.

The National Labour Framework seeks to protect workers’ rights and improve labour conditions. However, it remains heavily focused on the formal sector, leaving HBWs, who form a significant part of the informal economy, largely outside its protective scope. The Sindh Home-Based Workers Act (2018) and the Punjab Home-Based Workers Act 2023, KPK HBWs Act 2021 and Balochistan HBWs Act 2022 are key steps in the right direction for mainstreaming more than 20 million HBWs in Pakistan but fail to ensure comprehensive inclusion of HBWs in the national labor regulations.

The informal economy accounts for a significant proportion of Pakistan’s workforce, and HBWs, including women, make up a large share of this sector. Yet, without the proper recognition and integration of HBWs into the National Labour Framework, women continue to lack access to basic labor rights, minimum wage protections, healthcare and pensions. This disconnect between policy and implementation is worsened by the national debt crisis, which limits public investment in social protection programs for informal workers.

The National Gender Framework emphasises women’s economic empowerment and gender equality, aligning with the government’s commitment to reducing gender disparities across sectors. The plight of women HBWs highlights the gap between gender-related policy aspirations and actual outcomes. Women HBWs are often invisible in national labour statistics. Despite policy provisions, they remain excluded from social security schemes and economic protections.

For women HBWs, the National Gender Framework should serve as a foundational tool to ensure their inclusion in national labour policies and social protection programmes. However, the absence of a comprehensive mechanism that addresses the specific needs of women in the informal sector — such as maternity benefits, healthcare, and childcare support — means that economic empowerment remains out of reach for many. The current debt crisis exacerbates this gap, leaving women HBWs more vulnerable to economic shocks and exploitation. Pakistan’s national labour and gender frameworks, combined with its commitment to the SDGs, provide an opportunity to address the structural inequalities that HBWs, particularly women, face. However, the current national debt crisis demands urgent action to protect these workers from further economic vulnerability. By fully integrating HBWs into the National Labour Framework, ensuring that the National Gender Framework delivers on its promise of economic empowerment for women, and aligning with the SDGs, Pakistan can not only safeguard the rights of HBWs but also promote sustainable and inclusive economic growth.

The writer can be reached at lailazharali@gmail.com