Time for Pakistan’s Private Sector to Lead the Charge on Gender

May 26, 2025
A group of women in formal attire participate in a presentation and discussion session.


When I think of 21-year-old Nameera, a resident of the sprawling metropolis of Karachi and a trainee from UNDP’s industrial course in Sindh, it brings a smile on my face.

A passionate dressmaker who wanted to build an independent life for herself, she needed just one opportunity to prove her mettle. And when that opportunity came knocking from Yunus Textile Mills – the largest exporter of Home Textile Products in Pakistan – she grabbed onto it with both hands. 

Today, she works at the textile giant as a training coordinator, recruiting new trainees for the stitching unit, producing top-notch clothing articles, and ensuring compliance with safety and operational policies.

But my smile fades away as reality sinks in. Nameera’s success is like a drop in the ocean.

Pakistan ranks 145 out of 146 countries on the Global Gender Gap Index 2024. According to UNDP’s Human Development Report (HDR) 2025, Pakistan’s Gender Development Index (GDI) is 0.838 — placing it among the lowest globally. The International Labour Organization’s latest data shows that only 22 percent of Pakistan’s women are in the labor force compared to 81 percent of the country’s men.

These disparities are not just statistics – they represent lost opportunities. A systemic failure that prevents so many Nameeras from living the full life they deserve.

The irony is that it is not just the women that suffer. The whole nation pays the price when half the population is held back.

If women participated in the labor force at the same rate as men, Pakistan’s GDP could surge by up to 60 percent by 2025. Yet barriers to mobility, safety, and digital access hold back women entrepreneurship and employment.

The Case for Private Sector to Lead

The case for gender equality is no longer up for debate — it’s a proven imperative. The real question is: who will lead the charge to transform a decades-long inspiration into a reality?

While public institutions have taken steps through policy and legislation, the private sector also holds a great influence and responsibility in being both the agent of change and the sponsor of change.

At present, Pakistan’s private sector paints a dismal picture vis-à-vis gender equality.
 
A diagnostic study of 45 companies in Pakistan revealed that over half of them has less than 15 percent of women in their workforce, and 63 percent had fewer than 5 percent of women in senior management roles.

Evidence shows that companies with gender-diverse leadership see 3.5 percent higher annual investor returns and perform better during economic downturns. So, for Pakistan’s private sector, business as usual is not just a missed opportunity but a competitive disadvantage.

The private sector must transition from passive compliance to proactive leadership through a four-pronged strategy that embraces compliance, digitalization, inclusive investment, and women’s leadership as catalysts for growth.

Corporate Compliance with Purpose

The pioneering work of companies like Fatima Fertilizer, which, with UNDP's support, developed its SDG Impact Frameworks is an apt example. The Framework enabled Fatima Fertilizer to embed gender equality into its core business through measurable targets on pay equity, leadership, and rural women’s empowerment. 

Complementing this, UNDP, in partnership with the Overseas Investors Chamber of Commerce and Industry (OICCI), recently launched the Gender Equality Seal for the private sector. 

The Gender Equality Seal offers companies a robust certification programme aligned with global benchmarks. With its rollout in Pakistan, businesses, beginning with OICCI member companies, will have access to tailored tools and expert guidance to adapt international principles such as the Women's Empowerment Principles into actionable workplace improvements. 

The model has shown measurable results globally. In Latin America, companies that adopted the Seal saw a 22 percent rise in women’s leadership within three years. Through diagnostics, training, policy transformation, and external evaluation, the Seal aims to help companies embed equity into their DNA. 

Digitalize to Equalize

The rapid digitalization sweeping Pakistan can either be the great equalizer or the next frontier of exclusion.

According to UNDP's National Human Development Report (NHDR) 2024, digital transformation is critical for socio-economic uplift. Encouragingly, in 2024 the mobile internet gender gap reduced significantly, from 38 percent to 25 percent, driven by a sharp rise in adoption by rural women.

But access alone is not enough. Without action to address the social norms and institutional biases that shape the tech landscape, digital divides risk becoming even more entrenched.

The private sector can play a pivotal role by developing and promoting inclusive, accessible and affordable digital tools and platforms that cater to the specific needs of women. This includes mobile banking solutions, digital payment systems, and e-commerce platforms that empower women entrepreneurs and consumers.

Gender-Responsive Investments

The emergence of gender-responsive investments signals a growing recognition of the financial imperative of gender equality. The financial sector can unlock new markets and generate financial and social returns by channeling capital toward businesses and initiatives that demonstrably advance women's economic empowerment.

This includes investing in women-led businesses, companies with substantial gender diversity in leadership, and interventions that directly benefit women and girls. Integrating a gender lens into investment evaluations, as UNDP is doing through its SDG Investor Map, ensures that capital flows toward initiatives with positive gender impact. 

In 2023, UNDP partnered with Institute of Business Administration-Center for Entrepreneurial Development (IBA-CED) and JS Bank to conduct the SDGs Innovative Financing Challenge Cup. Four scalable businesses — promoting eco-friendly transport for women, waste valorization by women-led teams, a climate literacy platform for 3,327 students in 37 countries, and a circular economy solution for menstrual hygiene. This approach fuels economic growth and contributes to a more equitable distribution of wealth and opportunity.

Shifting the Face of Leadership

Elevating women to leadership positions within Pakistan's private sector is not merely a matter of equity but a strategic imperative for promoting inclusive, representative, and robust workplaces.

UNDP and the Karachi School of Business and Leadership (KSBL) recently collaborated to position women as leaders in economic and financial policy and decision-making, directly addressing the need for women leaders.

Ongoing advancement necessitates a comprehensive strategy. Companies must actively work to dismantle barriers that prevent women from reaching leadership positions, including addressing unconscious bias in hiring and promotion processes, providing mentorship and sponsorship opportunities, and creating supportive work environments with flexible work arrangements and access to childcare.

The private sector’s influence over employment, capital, innovation, and norms positions it uniquely to champion gender equality.

But this will not happen through isolated CSR projects or check-box reporting. It requires a values shift — embedding gender equity into corporate strategy, risk frameworks, and boardroom agendas.

When businesses embrace gender equality as a core value, not a side initiative, they unleash the full potential of their employees, strengthen their bottom line, and contribute to a more just and thriving society in which stories like Nameera’s are a norm – not an exception.