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Expanding Women’s Labor Force Participation Can Boost Economy: ADB

Despite comprising almost half of Pakistan’s total working age population, women’s labor force participation remained low at 23% in FY2021, hampering economic growth, according to a report issued by the Asian Development Bank (ADB).

The report notes this figure is both below the South Asian average of 27% and the 35% average of lower-middle-income countries globally. The low female labor force participation in Pakistan, it states, poses a significant loss of productivity, limiting potential economic growth and perpetuating gender inequality. It emphasizes that expanding women’s labor force participation can significantly boost productivity and output while advancing female empowerment, allowing women earners to have greater influence in household decision-making.

According to the report, women’s participation in the labor force is hampered by several factors, including limited access to quality education and vocational training that make it difficult for women to compete in the job market, restricting their opportunities for gainful employment.

Additionally, deep-rooted patriarchal social norms and cultural constraints discourage women from seeking employment outside the home, with traditional gender roles and societal expectations prioritizing women’s roles as homemakers and caregivers. The report also highlights limits to women’s mobility due to a lack of safe, accessible, and affordable transportation, hampering their ability to commute safely to and from work. High levels of poverty and economic instability may also reduce women’s labor force participation.

Women may need to prioritize unpaid domestic work over paid employment to support their families. Inadequate availability of affordable and reliable childcare further hinders women’s labor force participation, with many women exiting the labor market after having children. Workplace discrimination and harassment, biases in hiring practices, and a lack of supportive policies for working women further deter women from entering and staying in the labor force.

The report advises improving public transport and ensuring safe options to enable women to commute to work easily, especially in urban areas. Employers should be encouraged and incentivized to provide transport services to female employees and offer affordable and accessible childcare facilities to help women balance work and family responsibilities.

In 2023, the government introduced the Women on Wheels program, offering 22,000 women who work in the public sector the opportunity to purchase scooters and motorcycles at discounted prices. Such initiatives, it said, should be expanded, and a rental option may be added.

Another successful example is the Peshawar Bus Rapid Transit project, which increased female public transport use from 2% in 2020 to 30% in 2024 and expanded women’s employment in the transport sector from effectively nil to over 10%. Similar transport projects can be implemented in other large urban centers.