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ILO Flags Pakistan’s Gender Pay Gap as Worst

Why in the News ?

The International Labour Organisation (ILO) in its Global Wage Report ranked Pakistan among the worst in South Asia for gender pay disparity. Women earn 34% less than men, reflecting deep socio-economic, cultural, and institutional barriers with no signs of improvement.

Key Findings of the ILO Report:

  • Pakistan’s Gender Pay Gap: Women earn 34% less than men, far higher than the global average.
  • Regional Comparison: Pakistan fares worse than India, Bangladesh, Sri Lanka, and Nepal.
  • Stagnation: Unlike some neighbours showing improvement, Pakistan has made no progress in reducing wage inequality.
  • Contributing Factors: Structural discrimination, lack of workplace protections, and persistent socio-cultural barriers.

Challenges and Implications

  • Informal Economy Dominance: Majority of women in Pakistan work in low-paid informal jobs like agriculture, domestic work, and home-based manufacturing.
  • Lack of Protections: Informal workers lack formal contracts, benefits, and labour rights.
  • Cultural & Institutional Barriers: Traditional gender roles and weak legal enforcement widen the gap.
  • Broader Impact: Persistent wage inequality hampers economic growth, social equity, and women’s empowerment in Pakistan.
  • Global Standing: Pakistan remains among the lowest ranked countries in gender equality, signaling urgent need for reforms.

Understanding Gender Pay Gap:

●      Definition: Gender Pay Gap (GPG) is the difference in average earnings between men and women.

●      Global Average: According to ILO, the global gender pay gap is ~20%.

●      India’s Position: India’s GPG is lower than Pakistan’s but remains significant due to low female labour force participation.

●      Indicators: GPG is linked with SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth).

●      Global Reports:

○       ILO Global Wage Report → tracks wage inequality.

○       WEF Global Gender Gap Report 2025: Pakistan ranked 151/156 on economic participation & opportunity.