According to a recent report by the International Labour Organization (ILO) on Pakistan, women in wage employment earn 25% less per hour and 30% less per month than their male counterparts, depending on the specific wage measure used. The statistics reveals that Pakistan has the highest wage disparity among the South Asian economies, where the gaps in lower middle-income countries are averaged at 17% hourly and 21% monthly.
Source: ILO, Gender Pay Gap in Pakistan: An Empirical Analysis and Policy Implications (2025).
Most of this disparity is unexplained not because of education, experience, or occupation but because of occupational segregation, informal work, and discriminatory practices. It is critical to address this because ongoing wage inequalities hinder Pakistan's progress toward inclusive economic growth and gender equality.
The Dual Disadvantage; Insufficient Wages and Limited Participation
In Pakistan, the involvement of women in the workforce is remarkably low. In 2024, female labor force participation in the world was 51.13% while in Pakistan, it was 24.26%. This shows that more than half of the working age female population is not participating in the labor market. This can be attributed to cultural norms, safety concerns, and a lack of adequate support systems like childcare. The two factors i.e., wage inequality and limited participation strengthen one another. Due to their small number, women lack power to negotiate. And due to lower wages of female workforce, others are discouraged from entering to the job market.
Source: World Bank, World Development Indicators: Labor Force Participation, Female (% of female population ages 15+) (2024).
Obstacles that Limit Women's Progress:
The gender wage gap in Pakistan persists due to the following barriers.
Occupational Segregation
The report provided by the ILO highlights the sticky-floor effect, which signifies that women remain trapped in low-paying, female-dominated positions, especially within informal sectors like agriculture and home-based work where the possibility of progress is almost nonexistent. This segregation results in gender wage gap and causes a decline in opportunities for women.
Informal Economy
The gender wage gap in an informal economy is 40% less per hour. Around 70% of women in Pakistan work in an informal economy where there is less or no focus on the implementation of labor laws. Hence, there is no protection regarding minimum wage threshold, anti-harassment policies, working hours, or maternity benefits. This results in exploitation of female labor force in such areas causing them to earn less.
Gender Based Discrimination
Majority of women face discrimination in wages and earn less as compared to their male counterparts despite of having same skills and qualification, and sometimes same position at the workplace. They have limited professional networks and slow promotions. This results in low productivity, lower job satisfaction and high turnover rates.
Cultural Norms
Some cultures prohibit women to attain formal employment due to the deep-rooted cultural norms. They consider men as a sole bread earner while women are only considered as homemakers no matter if they are working in labor market or not. In addition to this, people do not allow women to go to distant areas for work or travel in public transports due to safety concerns. The Women's Economic and Social Well-being Survey (2018) reported that 34% of women between the ages of 15 and 64 in Punjab (Pakistan) consider insufficient transportation as a major obstacle to participating in the workforce.
Unpaid Domestic Work
Conventional gender roles often limit women to unpaid domestic work and caregiving tasks. For example, in Pakistan, women are ten times more engaged in unpaid domestic work than men. These traditional roles not only restrict women's access to paid job opportunities but also sustain gender inequality throughout the region.
Conclusion
The gender wage gap report presented by ILO is a wakeup call for the government. It is evident from the statistics that women do not actively participate in the job market and when they do, they are generally underpaid. This discrimination is not because of lack of desired qualification or skills but because of societal norms, occupational segregation, and maternity benefits. We have labor laws that protect women and provide them benefits at the workplace, but these laws are just confined to a document. The challenge is not to make the right policies but to implement them. ILO emphasizes that reducing gender wage gap is crucial not only to provide justice to women but also for increasing economic productivity and societal well-being. Hence, the gender wage gap must be addressed to achieve inclusive economic growth and fulfil Pakistan's obligations under the Sustainable Development Goals.
