Women, Employment and Labour in Informal Economy
Acknowledgement
The monitoring and review of SDG 5 and 8 was possible only because of the participation and support of women human rights groups and labour organizations, and other key stakeholders. Our sincere gratitude to the women home workers and domestic workers who participated in the processes and shared their insightful experiences during the interviews, discussions, dialogues and consultations. The immense knowledge of the personal journey of these powerful women from the informal economy, during the challenging times of the pandemic, made it possible for us to document the process. We are also grateful to the representatives their support and facilitation throughout the period. The awareness and sensitization sessions were indeed a great learning for the organization also. Larger sharing of the courageous women’s life stories, personal journeys of daily struggle for livelihood and decent living conditions made it possible to understand and unveil the patriarchal fabric enshrined within the systemic barriers creating hurdles for accessing fundamental constitutional right as workers. The young energetic women who participated in the research and shared their aspirations for a better future with sustainable livelihood and legitimate recognition added more to the whole process. Their conviction, passion and commitment for collective actions ascertained their ability to take up the women labour movement to a level where their voices are included in policies.
The community of women leaders from Karachi and Lahore deserve applause because of their inspirational and motivational input especially during the pandemic. HomeNet Pakistan team also deserved recognition. Despite several challenges, they were able to diligently complete the related activities, initiate dialogues, plan and facilitate the consultative processes and several sessions with the community women, government officials and civil society.
Finally, we extend our appreciation to the Asia Pacific Forum on Women, Law, and
Development for their insightful comments, guidance, technical and financial support without which the monitoring and review process would not have been possible.
This publication was produced with support from Swedish International Development
Cooperation Agency (Sida) and Foundation for a Just Society (FJS).
Executive Summary
Women under-represented and under-valued in the national economy and labour market is one of the most critical factors contributing to the economic inequality in Pakistan. The World Economic Forum Global Gender Gap Report 2021 (GGGR)1 states that Pakistan has one of the largest economic gender gaps, 31.6 percent, along with Iran, India, Pakistan Syria, Yemen, Iraq and Afghanistan. The Pakistan Bureau of Statistics (PBS) 2017-18 national census states labour force participation among women of all ages is 14.52 percent and male participation at 48.32 percent2. This disparity translates into income inequality, as a Pakistani woman’s income is only 16.3 percent of a man’s.3 With high inequality in the wage structure, women have limited choice to work and employment. Women workers employed in the 74 percent of the informal sector of Pakistan are vulnerable. Home-based work and domestic care work is consider an ‘acceptable’4 choice for women who need additional income to support their families. In Pakistan, home-based workers (HBWs) and domestic workers (DWs) are overwhelmingly women. According to estimates, there are more than 12 million HBWs and 8 million DWs in Pakistan. The number of women employed on the home-based sector is rising at a rate of five percent a year5.
Home-based workers as part of informal labour workforce are workers who carry out remunerative work in their home or in other premises of their choice, other than the workplace of the employer, which results in a product or service as specified by the employer (irrespective of who provides the equipment, materials or other inputs used). Persons with employee status and those who occasionally perform their work at home, rather than at their usual place of work, are not considered home-based workers (ILO R184 – Home Work Recommendation, 1996 (No. 184).
According to ILO Domestic workers are those workers who perform work in or for a private household or households. They provide direct and indirect care services, and as such are key members of the care economy. Their work may include tasks such as cleaning the house, cooking, washing and ironing clothes, taking care of children, or elderly or sick members of a family, gardening, guarding the house, driving for the family, and even taking care of household pets. A domestic worker may work on full-time or part-time basis; may be employed by a single household or through or by a service provider; may be residing in the household of the employer (live-in worker) or may be living in his or her own residence (live-out). A domestic worker may be
working in a country of which she/he is not a national, thus referred to as a
migrant domestic worker.
COVID-19 severely disrupted labour markets around the world, including Pakistan due to workplace closures driven by lockdowns and mobility restrictions. The effects of labour market disruption brought about by the pandemic have been disproportionate. It increased the vulnerability of an already marginalized segment of the workforce, like the informal economy workers, including the HBWs and DWs. It is worth noting that 81% of home-based workers in Pakistan are women.
Prevalence of violence against women and the dominance of patriarchal attributes within the country ranks Pakistan at 159 in the SDG index and 153 out of 156 countries on the Global gender parity index. Country’s gender gap has widened over the years and have dropped and 0.7 percent in just one year7 (Iqbal, 2021). Despite several pro-women legislations, initiatives for social and economic sustainability, global gender indicators present another deep-rooted phenomenon, which highlights a semi feudal and semi-capitalist patriarchal overarching environment in the neoliberal era. Due to societal conditioning, women consider their main and primary role in the private family unit influenced to be under subordination and reinforces gender stereotypes. Thus the existing prejudices against women in general further reinforces inequality between men and women due to power structures, working silently and forcing women to conform to the existing standards within the societal structure, which make them feel inadequate, inappropriate and inapt.
Inspired by Saira, a successful transgender entrepreneur in the fabric business, Saima decided to explore her potential. She began by informing her community about her business plans and started selling unstitched suits purchased from wholesale markets. Initially cautious, she only bought a few items, unsure of their salability and profitability.
After gathering support from her community, she began buying unstitched 3-piece suits from the wholesale market and selling them alongside her group. Initially, she purchased only 10-12 items due to uncertainty about their sale and a lack of understanding about how to turn a profit. Despite her efforts, she struggled to generate sufficient income, often relying on her salary to cover business expenses.
KSS introduced Saima to HomeNet Pakistan (HNP), an organisation focused on women’s empowerment. Attending HNP’s meeting, she learned about the Financial Inclusion of Home-based Workers’ Enterprises through Business Booster Loan and Trainings (FBLT) project. This project aimed to empower home-based workers with training in business management and access to financial services.
Saima got so inspired by the theme of the project that she enrolled in FBLT and started its Foundation Level Training. It was during her training that she launched her business, Saima’s Collection.
EMPOWERMENT THROUGH EDUCATION
The Foundation Level Training equipped Saima with fundamental business management skills.One of her primary challenges was commuting to wholesale markets to purchase materials,which added significantly to her expenses. However, the training taught her to offset these transportation costs by setting realistic prices for her products. Additionally, she learned the importance of including a fee for her effort and ensuring a profit margin on each purchase to ensure the sustainability of her business.
Furthermore, she acquired valuable time management and communication skills through the training. These skills proved instrumental in negotiating with customers and securing better deals for her fabrics.By implementing these strategies, including setting appropriate prices, negotiating favourable rates, and effectively managing her inventory, she witnessed a notable increase in sales and, consequently, her profits as well
FINANCIAL INDEPENDENCE
To assist Saima in establishing her business, FBLT facilitated a loan of PKR 150,000 through HBL Microfinance Bank.HNP not only connected her with the bank but also provided support throughout the documentation and verification process. Following a thorough assessment, the bank approved her loan during Ramadan. Saima utilized this sum to purchase fabric for Eid clothing, capitalizing on the high demand during this season.
Previously,Saima had been investing her salary in her business,yet she was left empty-handed by the end of each month.However, shenowearnsbetweenPKR45,000 to50,000monthly.After covering her expenses, she manages to save between PKR18,000 and PKR20,000 per month.Despite living far from her family, she maintains contact with her father, who supports her financially with her income.
FUTURE ASPIRATIONS
Saima acknowledges that she still has a considerable journey ahead.Balancing her job with her business currently limits her ability to dedicate full time and attention to her entrepreneurial venture. However, she remains optimistic that as her network expands and her savings grow, she will eventually leave her job to focus entirely on her business.Her ultimate aspiration is to become a successful businesswoman, allowing her the freedom to work independently and empower others through her work.
Saima’s story has inspired others, including a transgender woman who transitioned from stitching clothes to running her own business. Through determination and empowerment, Saima is paving the way for a brighter, more inclusive future for herself and her community.
SAIMA’S COLLECTION, LAHORE, PAKISTAN – CONTACT: 0306 2280228
