Investing in women

In the milieu of global challenges, where climate change looms large and economic inequality still exists, there is a pressing need for innovative solutions to address these issues and foster sustainable and equitable growth.

One such solution is to promote a green economy. So, what is it exactly? A green economy could be described as one that produces low carbon, is resource efficient and socially inclusive. This three-pronged focus results in improved human wellbeing, reduces inequalities and prevents future generations from significant environmental risks and ecological scarcities.

A key dimension of the green economy lies in investing in women’s economic empowerment, particularly in countries like Pakistan, where women face societal barriers, hindering their full representation in the workforce and limiting their access to economic opportunities. Holding key roles across society that influence how to produce, consume and market sustainable solutions, women are crucial agents of change, and their contribution and participation in green economic activities is essential to attain equitable sustainable development.

Women in Pakistan constitute 49 per cent of the population but only 20 per cent of the labour force. As per the World Bank, this workforce participation of women is one of the lowest not just in South Asia but globally. As for the agriculture sector, the International Labour Organization reports that the percentage of female employment is 65 per cent. However, women are often denied labour rights and protection and earn lower wages than men.

The climate crisis has added further fuel to their already dreadful situation by amplifying existing gender inequalities and posing unique threats to their livelihoods, health, and safety. Women’s diverse nature of work spans productive, reproductive, domestic care, agriculture, and community and social work that generally does not get captured as lines between work for economic gain, and work as an extension of household chores (livestock management), and on the family farm are blurred.

Patriarchal traditions and violence against women remain significant barriers to their economic empowerment. According to the Pakistan Demographic and Health Survey, 23 per cent of ever-married women report having experienced physical violence, 26 per cent emotional violence, and 5.0 per cent sexual violence at the hands of husbands. All forms of violence are higher among women with no education and decline in the case of women with higher education.

Baseline studies of UN Women’s Women Economic Empowerment show that women who get financially independent are more likely to report violence and abuse cases. Addressing gender-based violence is essential to creating a safe and enabling environment for women to participate in the economy.

To address this challenge, it is important to invest in women in the early stage of life – meaning investing in girls is crucial for ensuring equal opportunities and avoiding later disadvantages. This includes investing in their education, employment, and access to information, empowering them to reach their full potential.

Currently, 12 million girls in Pakistan are out of school, depriving them of their fundamental right to education and limiting their future prospects. These girls, when they grow up, will be at a disadvantage due to a lack of awareness of their rights and their untapped potential. Investing in girls’ education from an early stage is not just a moral imperative but also an economic necessity, as educated women are more likely to participate in the workforce and contribute to economic growth.

Unsurprisingly, awareness of gender dynamics in the workplace also tends to be low. Moreover, policies that could help redress the current imbalance in the sector – such as flexible working hours, parental leave, return-to-work schemes, bias-free recruitment and promotion, and gender-balanced boards and panels – are scarce.

UN Women is working with institutions such as the National Commission for Human Rights, and alliances to mobilize support for recommended actions and legislative reforms for the elimination of all forms of discrimination against women. This effort extends towards creating an enabling environment where women can exercise their rights, actively participate in their communities, and rise to leadership positions, ultimately advancing gender equality and women’s empowerment in the country.

UN Women is actively collaborating with the Securities and Exchange Commission of Pakistan (SECP), providing them with technical and financial support in the development of an environmental, social and governance (ESG sustain) dashboard. This dashboard will represent one of the initial actions for companies to voluntarily disclose ESG and gender-related metrics, potentially motivating them to allocate additional resources towards these efforts.

Also, UN Women, in collaboration with various partners and UN agencies, including the Food & Agriculture Organization (FAO), is working on a gender-responsive approach, engaging women and men, in parallel, in their respective agricultural domains. This approach focuses on providing a level playing field between genders, contextualized to suit the local and domestic dynamics by providing them with improved access to productive assets, technologies, and services. Through this initiative, underserved farmers, especially women farmers, will have an increased voice and support to actively participate in local economic development interventions in the future.

Another sector that needs our immediate attention is that of home-based women workers. Through initiatives that support home-based women workers and women-owned businesses, UN Women and its partner organizations are providing women with platforms to showcase their work and increase their visibility.

They have so far supported tens of thousands of home-based women workers through training, entrepreneurship, and business development support. It has also provided support to tens of thousands of home-based women workers for disaster relief and rehabilitation by providing cash grants and distributing agricultural inputs, sewing kits, and raw materials to enhance their economic resilience post the Covid-19 pandemic and the floods in 2022.

UN Women is also working with microfinance institutions to develop gender bonds and microfinancing options for women. As part of this initiative, it has collaborated with the State Bank of Pakistan to implement its banking on equality (BOE) policy. One of the key ideas behind the collaboration is to contribute toward increasing the capacities of the financial sector (banks in particular) to develop, adopt and implement policies for the provision of public and private financing for women entrepreneurs.

UN Women has initiated engagement with microfinance institutions to explore possibilities for collaboration, particularly regarding gender bonds and microfinancing, for gender equality and women’s economic empowerment.

Investing in women’s economic empowerment not only benefits women but also has broader societal and economic benefits. Studies show that if women’s participation in the economy were on par with men, Pakistan’s GDP could surge by 60 per cent by 2025. Bridging the gender gap in labour force participation could result in a one-off 30 per cent boost in GDP.

As we work on Pakistan’s progress towards gender equality and economic development, we urge everyone to recognize the importance of investing in women for a greener, more inclusive economy. It is time for policymakers, businesses, and civil society to prioritize women’s economic empowerment as a key strategy for sustainable development. The future of Pakistan depends on it.

The writer is a country representative at UN Women.