By Ujala Asim

Economic Growth and Decent Work are essential components of a thriving economy and society. In Pakistan, as in many other countries, the achievement of these goals faces various challenges and complexities. In this analysis, we will explore the criteria for Economic Growth and Decent Work, the causes of the lack of progress in these areas, and provide recommendations for legislative, administrative, financial, and other factors that can contribute to their improvement. We will also discuss the role of Economic Growth and Decent Work in Pakistan’s development.

In Pakistan, the COVID-19 crisis has significantly affected the economy, particularly the informal sector, which constitutes a substantial portion of the labor force. Informal workers, already lacking social protection and formal employment contracts, witnessed substantial income losses and increased poverty during the pandemic. According to the International Labour Organization (ILO), labor income in Pakistan decreased by 10.3% in the first three quarters of 2019. Women-owned enterprises in the country also faced severe challenges, with many reporting negative impacts on their businesses due to COVID-19.

Integration of Human Rights and Gender Equality

The pandemic has negatively impacted progress toward SDG 8.5, which aspires to attain full and productive employment, decent work, and equal pay for all. Gender pay gaps, unequal distribution of unpaid care work, discrimination in access to decent jobs, and workplace violence and harassment against women have been exacerbated. The digital divide, intensified by remote work, poses a significant threat to women’s employment opportunities in Pakistan, where women often lack technological skills and access.

To address these challenges, Pakistan needs to focus on upskilling women in information and communication technology (ICT) and creating pathways for their integration into the technology sector. Implementation of international labor standards and the promotion of social dialogue to address labor policy issues are crucial steps to ensure a just and favorable working environment for all in the country.

Promising Innovations and Best Practices

Several innovative approaches and best practices are emerging in Pakistan to counter the challenges posed by the pandemic and make progress towards SDG 8:

• Equal Pay International Coalition (EPIC): Pakistan should consider engaging with EPIC, a global initiative led by the ILO, UN Women, and OECD, aimed at reducing the gender pay gap and achieving equal pay for equal work. This initiative could help address gender wage disparities within the country.
• Sustainable Consumption and Production (SCP) Policies: Pakistan can follow the lead of other countries in the region by integrating SCP policies into national development plans. Emphasizing sustainability in sectors like agriculture and food can help create decent work opportunities.
• Organizing Informal Workers: Pakistan should explore the potential of organizations like Women in Informal Employment: Globalizing and Organizing (WIEGO) to build the capacity of informal worker membership-based organizations and enhance workers’ rights.
• Resilient Value Chains: Encouraging small and medium-sized enterprises (SMEs) in Pakistan to build more resilient and sustainable value chains can contribute to progress toward SDG 8.4.
• Volunteering Programs for Youth Employment: Initiatives like Cambodia’s Volunteer for My Community (VMC) program, supported by UN Volunteers, can serve as a model for creating youth employment opportunities in Pakistan.
• Women’s Empowerment Principles (WEPs): Pakistan’s private sector can play a significant role in promoting gender equality by committing to initiatives like WEPs.

Priorities for Action in Pakistan

To promote sustained, inclusive, and sustainable economic growth and decent work in Pakistan post-COVID-19, policymakers and stakeholders should consider the following priorities for action:

• Inclusive Planning: Pakistan should promote integrated planning involving government ministries, trade unions, employers’ organizations, and civil society. Ensuring marginalized groups’ voices are heard in decision-making processes and targeting economic support to self-employed workers and SMEs is essential.
• Strengthen Labor Market Institutions: Enforcing labor market institutions to support post-pandemic recovery, focusing on legislation, social protection, freedom of association, anti-discrimination measures, and collective bargaining is crucial. Extending labor rights and safe working environments to vulnerable groups, especially women and migrant workers, is essential.
• Occupational Safety and Health: Pakistan should proactively implement occupational safety and health measures to protect workers, especially informal and migrant workers, from future pandemics and emerging risks.
• Invest in Human Capital: Increasing investments in formal and non-formal education and training is vital. Reskilling and upskilling workers, particularly in sectors heavily impacted by the pandemic, can help bridge the digital divide.
• Promote a Green Transition: Pakistan should implement policies that facilitate the transition to a green economy, focusing on sectors like agriculture, food, construction, and infrastructure to improve resource efficiency.
• Recognize, Reduce, and Redistribute Care Work: Professionalizing and creating secure, decent work opportunities in the care economy is crucial. Pakistan should promote gender-just skills training, expand affordable childcare, and promote equal sharing of unpaid work between genders.

UN’s Contribution in Pakistan

The United Nations (UN) plays a vital role in supporting Pakistan’s efforts to achieve Sustainable Development Goal 8 (SDG 8) and promote sustainable economic growth and decent work. The UN provides technical assistance, funding, and expertise in several key areas:

1. Capacity Building: The UN helps build the capacity of Pakistani institutions to formulate and implement policies that promote decent work and economic growth. This includes training programs for government officials and civil society organizations.
2. Data and Research: The UN assists in collecting and analyzing data related to employment, labor market trends, and gender disparities, providing valuable insights for evidence-based policymaking.
3. Advocacy and Awareness: The UN raises awareness about the importance of decent work and sustainable economic growth in Pakistan through campaigns, workshops, and events. It advocates for the inclusion of these issues in national development plans.
4. Technical Assistance: UN agencies provide technical assistance to Pakistan in various sectors, including education and skills development, labor market reforms, and social protection programs.
5. Gender Equality: UN Women works closely with Pakistan to promote gender equality in the workplace, reduce gender pay gaps, and empower women-owned enterprises.
6. Green Economy: The UN supports Pakistan’s efforts to transition to a green economy by providing expertise on sustainable production and consumption practices.
7. Human Rights: UN agencies in Pakistan work to ensure that labor rights and human rights are protected in the context of economic growth. They help address issues like child labor and forced labor.

Criteria for Economic Growth and Decent Work:

1. GDP Growth: Economic Growth is often measured by the Gross Domestic Product (GDP) growth rate. A sustainable GDP growth rate is indicative of a growing economy with opportunities for employment.
2. Employment Rate: A key criterion for Decent Work is the employment rate. It should reflect a substantial portion of the working-age population in productive and meaningful employment.
3. Quality of Employment: Decent Work emphasizes the quality of jobs, including fair wages, safe working conditions, job security, and opportunities for skill development.
4. Income Inequality: A more equitable distribution of income is a crucial factor. A lower Gini coefficient indicates less income inequality.
5. Social Protection: Access to social protection measures such as healthcare, retirement benefits, and unemployment benefits is vital for workers.

Causes of the Lack of Economic Growth and Decent Work in Pakistan:

1. Structural Issues: Pakistan’s economy faces structural issues, including over-reliance on agriculture, a large informal sector, and low industrialization. These factors limit economic growth and the availability of decent jobs.
2. Political Instability: Frequent political instability and changes in government policies can disrupt economic growth and job creation.
3. Educational Challenges: Inadequate access to quality education and skills development programs results in a workforce with limited skills, reducing opportunities for decent work.
4. Informal Economy: A significant portion of Pakistan’s workforce operates in the informal economy, lacking job security, social protection, and fair wages.
5. Corruption: Corruption within public institutions can hinder economic growth and undermine the creation of decent work opportunities.
6. Security Concerns: Security issues and terrorism have a negative impact on investment and job creation in various sectors.
7. Gender Disparities: Gender disparities in employment, wages, and social protection persist, limiting the participation of women in the workforce.

Comparative Analysis of Economic Growth and Decent Work in Pakistan Among Different Groups:

1. Urban vs. Rural: Urban areas generally have better economic opportunities and decent work prospects compared to rural regions, where agriculture dominates.
2. Formal vs. Informal Sector: Workers in the formal sector have access to better wages, job security, and social protection, whereas those in the informal sector face greater challenges.
3. Gender: Gender disparities exist in Pakistan’s workforce. Men often have better access to decent work compared to women, who face discrimination and unequal pay.
4. Skilled vs. Unskilled Labor: Skilled labor is more likely to secure decent work with higher wages, while unskilled laborers face job insecurity and lower income.

Recommendations for Economic Growth and Decent Work in Pakistan:

1. Diversify the Economy: Encourage economic diversification, invest in industries, and promote entrepreneurship to create a more dynamic job market.
2. Invest in Education and Skills: Improve access to quality education and vocational training to enhance the skills of the workforce.
3. Labor Market Reforms: Enact labor market reforms to formalize the informal sector, strengthen workers’ rights, and promote decent work.
4. Infrastructure Development: Invest in infrastructure to facilitate economic growth, attract investments, and create jobs.
5. Anti-Corruption Measures: Implement anti-corruption measures to ensure a transparent and accountable business environment.
6. Gender Equality: Promote gender equality in the workforce by addressing discrimination, providing equal pay for equal work, and supporting women’s participation.
7. Security and Stability: Enhance security measures to create a stable environment for investment and job creation.

Role of Economic Growth and Decent Work in Pakistan:

Economic Growth and Decent Work play a pivotal role in Pakistan’s development:

1. Poverty Reduction: Economic growth leads to increased income, reducing poverty rates. Decent work ensures that individuals have the means to support themselves and their families.
2. Social Stability: A thriving economy with decent work opportunities contributes to social stability by reducing unemployment and inequality, which can lead to social unrest.
3. Human Development: Decent work allows individuals to lead dignified lives, access education and healthcare, and contribute to their personal development.
4. Global Competitiveness: A strong economy with decent work opportunities enhances Pakistan’s competitiveness in the global market.

In conclusion, achieving Economic Growth and Decent Work in Pakistan requires a multifaceted approach involving economic diversification, education, labor market reforms, and gender equality. These factors are not only essential for the country’s economic development but also for the well-being of its people and social stability. Addressing the causes of the lack of progress in these areas is crucial for Pakistan’s sustainable growth and prosperity.

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