n a rapidly globalising world, trade serves as a critical engine for economic growth and development. Yet, in South Asia, one of the most populous and dynamic regions globally, the participation of women in trade remains low. This under-representation is not just a social injustice but also an economic misstep. It prevents these countries from fully harnessing their human capital and potential for growth.

The integration of women into the trade sector is crucial for achieving inclusive economic development, not only for the women themselves but also for the economies of South Asia.

Despite their demonstrated ability in various sectors, women across South Asia face significant barriers to entering and thriving in the trade sector. Socio-cultural norms, legal constraints and limited access to financial resources are among the primary obstacles that prevent women from greater participation in trade. These barriers are deeply entrenched and require concerted efforts from both public and private sectors so that they can be overcome.

In Pakistan, for example, women constitute only 1 percent of entrepreneurs, compared to 21 percent male entrepreneurs. In Sri Lanka, women make up a significant portion of the workforce in sectors like agriculture, but their participation in the formal trade sector remains minimal. Similarly, in Bangladesh, while women dominate the ready-made garments industry, which is a significant contributor to the country’s exports, their role is often confined to low-wage positions with limited upward mobility.

In many South Asian countries, traditional gender roles dictate that women should prioritise domestic responsibilities over economic activities. This societal expectation limits women’s mobility and their ability to engage in trade. For instance, the labour force participation rate for women in Pakistan is only 25 percent, compared to 81 percent for men.

This disparity is even more pronounced in rural areas, where women’s economic activities are often limited to informal sectors with little or no access to markets.

The legal and regulatory frameworks in South Asian countries often fail to support women entrepreneurs. In Pakistan, the legal framework score for entrepreneurship is a mere 50 out of 100, indicating significant barriers to women’s economic empowerment.

These include difficulties in accessing business licenses, property rights and credit facilities. In Sri Lanka and Bangladesh, similar challenges persist, exacerbating the difficulties women face in establishing and expanding their businesses.

Access to finance remains one of the most significant barriers for women entrepreneurs in South Asia. State Bank of Pakistan data shows that in Pakistan women SMEs receive only 3.2 percent of the SME lending.

This lack of access to credit is often due to discriminatory lending practices, lack of collateral and limited financial literacy among women. In Bangladesh and Sri Lanka, women face similar challenges, which restrict their ability to scale their businesses and participate in trade.

Addressing these challenges requires a coordinated effort from both the public and private sectors. Governments in South Asia have taken some steps to promote women’s participation in trade, but these efforts are often insufficient and poorly implemented.

In Pakistan, the Trade Development Authority has introduced some policies to support women entrepreneurs, such as subsidies for participation in trade delegations and international exhibitions. However, these initiatives often target a limited number of women and fail to address the broader structural barriers that prevent women from entering the trade sector.

In Bangladesh, the government has introduced training programmes for women in sectors like fisheries and horticulture. However, these efforts are often hampered by a lack of data and gender-disaggregated statistics, making it difficult to assess their impact.

The private sector also has a crucial role to play in empowering women in trade. In Pakistan, the Federation of Pakistan Chambers of Commerce and Industry has launched initiatives like the SAARC Women Entrepreneur Council and offers a 50 percent membership fee waiver for women in standing committees.

However, the impact of these initiatives is limited by a lack of public-private partnerships and the exclusion of women-focused chambers from key decision-making processes. In Bangladesh, the Women Chamber of Commerce and Industry has collaborated with the Asian Development Bank to establish the Women Institute for Entrepreneurial and Leadership Development. More needs to be done to ensure that these programs reach a broader population.

To unlock the full potential of women in trade, South Asian countries must take a more proactive approach in addressing the barriers that women face. The following recommendations offer a roadmap for achieving greater gender inclusivity in trade.

Governments must introduce and enforce gender-sensitive policies that support women’s participation in trade. This includes simplifying business registration processes, providing targeted financial products for women entrepreneurs and ensuring that trade agreements include provisions that benefit women-led businesses. For example, the inclusion of gender-specific provisions in trade agreements, as seen in the Canada-Chile FTA, can help promote the inclusion of women-owned businesses in global supply chains.

Financial institutions must develop specialised financial products tailored to the needs of women entrepreneurs. These could include micro-loans, credit guarantees and low-interest loans with simplified application processes.

Public-private partnerships can also play a role in promoting digital financial services, such as mobile banking, which can help women overcome mobility barriers and access financial resources more easily.

Digital platforms offer significant opportunities for women entrepreneurs to engage in trade without the need for physical mobility. Governments and private sector partners should invest in expanding broadband infrastructure and providing digital literacy training tailored to women’s needs.

Initiatives like the Pakistan Single Window can provide women with access to critical information on trade procedures and compliance requirements, enabling them to participate more effectively in cross-border trade.

Women entrepreneurs need access to capacity-building programmes that provide them with the skills and knowledge necessary to succeed in trade. These programmes should be designed to address the specific challenges women face, such as limited access to networks and information. Additionally, strengthening business networks and support systems for women can help them gain visibility and secure the resources they need to expand their businesses.

A significant barrier to effective policymaking is the lack of data on women’s participation in trade. Governments must invest in collecting and analysing gender-disaggregated data to inform policies and programs that support women entrepreneurs. This data will also help to identify the specific challenges women face and track the progress of initiatives aimed at empowering women in trade.

Empowering women in trade is not just a matter of social justice; it is an economic imperative for South Asia. By addressing the sociocultural, legal and financial barriers that women face, the region can unlock a vast source of untapped potential that can drive economic growth and development. The time for action is now. Governments, financial institutions and the private sector must work together to create an enabling environment where women can participate fully in trade and contribute to the prosperity of their nations.

The writer is a research associate at the Economic Growth Unit, Sustainable Development Policy Institute