Emerging Markets: Employment

Now on the Job in Pakistan: Women


When Naz Khan became Pakistan’s first female money-market trader 19 years ago, KASB Securities, the Merrill Lynch (BAC) affiliate that had hired her, needed to build a women’s restroom in its Karachi office. By the time Khan left last year to become chief financial officer at Engro Fertilizer, KASB had so many women on staff that “we had to get in line” to use the restroom, she says.

Pakistan has long been a tough place for women seeking employment beyond the farm or factory. For decades the country’s conservative culture, with few links to the outside world, prevented many girls from getting an education and kept most women at home or in low-paying jobs. But in recent years Pakistanis have gained a greater awareness of how other societies treat women, as Internet use has expanded, global corporations have entered the country, and scores of television channels and radio stations have sprung up. At the same time, galloping inflation has spurred many women to seek jobs.

More of them than ever are finding employment, doing everything from pumping gasoline and serving burgers at McDonald’s (MCD) to running major corporations. About 22 percent of Pakistani females over the age of 10 now work, up from 14 percent a decade ago, government statistics show. Women now hold 78 of the 342 seats in the National Assembly, and in July, Hina Rabbani Khar, 34, became Pakistan’s first female Foreign Minister. “The cultural norms regarding women in the workplace have changed,” says Maheen Rahman, 34, chief executive officer at IGI Funds, which manages some $400 million in assets. Rahman says she plans to keep recruiting more women for her company.

Much of the progress has come because women stay in school longer. More than 42 percent of Pakistan’s 2.6 million high school students last year were girls, up from 30 percent 18 years ago. Women made up about 22 percent of the 68,000 students in Pakistani universities in 1993; today, 47 percent of Pakistan’s 1.1 million university students are women, according to the Higher Education Commission. Half of all MBA graduates hired by Habib Bank, Pakistan’s largest lender, are now women. “Parents are realizing how much better a lifestyle a family can have if girls work,” says Sima Kamil, 54, who oversees 1,400 branches as head of retail banking at Habib. “Every branch I visit has one or two girls from conservative backgrounds,” she says.

There’s still a long way to go. The employment rate for men is triple that for women, and Pakistan’s female literacy rate is just 45 percent, vs. 70 percent for men. In agriculture, where women account for three-fourths of all workers, female laborers such as cotton and chili pickers earn less than 50¢ a day. In the informal manufacturing sector—companies that make, say, blouses, bedsheets, or soccer balls—women make up 57 percent of the workforce, but they spend more hours on the job and receive lower pay than their male counterparts, according to the Pakistan Institute of Labour and Economic Research. In 2009, the agency says, women in light manufacturing earned an average of 2,912 rupees ($34) monthly, about 40 percent of the average earnings for men.

Sexual harassment remains a big problem. Umul Awan, 25, an equity dealer at United Bank in Karachi, says women are sometimes ridiculed by male colleagues for not having facts at their fingertips that the men would have difficulty summoning. “You have to maintain your distance and create a stern image,” Awan says. Lara Arif, 32, who sells fabric for women’s dresses from her home in Karachi, avoids taxis when she visits clients. Instead, she favors buses, with their crowds of people, or rickshaws, which have no doors and so are easier to escape should the need arise. “You have to be very reserved and remain alert all the time,” Arif says.

Some companies believe hiring women gives them a competitive advantage. Habib Bank says adding female tellers has helped improve customer service at the formerly state-owned lender because the men on staff don’t want to appear rude in front of women. And makers of household products say female staffers help them better understand the needs of their customers. “The buyers for almost all our product ranges are women,” says Fariyha Subhani, 46, CEO of Unilever Pakistan Foods, where 106 of the 872 employees are women. “Having women selling those products makes sense because they themselves are the consumers,” she says.

To attract more women, Unilever last year offered some employees the option to work from home, and the company has run an on-site day-care center since 2003. Engro, which has 100 women in management positions, last year introduced flexible working hours, a day-care center, and a support group where female employees can discuss challenges they encounter. “Today there is more of a focus at companies on diversity,” says Engro Fertilizer CFO Khan, 42. The next step, she says, is ensuring that “more women can reach senior management levels.”

The bottom line: More Pakistani women are working outside the home, but pay in some important sectors is just 40 percent of what men earn.

Mangi is Pakistan bureau chief for Bloomberg News.

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Companies Mentioned

  • BAC
    (Bank of America Corp)
    • $16.74 USD
    • -0.05
    • -0.3%
  • MCD
    (McDonald's Corp)
    • $93.47 USD
    • 0.13
    • 0.14%
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