Ayesha Mudassar

The World Inequality Report 2022 has portrayed a very grim picture of inequality, calling for governments and individuals to actively work towards eliminating discrimination, promoting inclusivity and ensuring equal treatment for all.

The report illustrates that the richest 10% of the global population currently take 52% of global income, whereas the poorest half of the population earn 8.5%. In Pakistan, the richest 10% of the population earn 40% of the national income, whereas the poorest 10% earn just 2% of the country’s income.

Global wealth inequalities are even more pronounced than income inequalities. The poorest half of the global population barely own any wealth at all, possessing just 2% of the total. In contrast, the richest 10% of the global population own 76% of all wealth. Dr Nadeem-ul-Haque, Vice-Chancellor of Pakistan Institute of Development Economics, has attributed the extreme wealth and income inequalities to poor redistribution via taxes and spending, privatisation, higher net private wealth, and neo-colonialism.

Talking about gender inequality, Additional Secretary of Board of Investment (BOI) Ambreen Iftikhar said that despite constituting half of the country’s population, women have a remarkably low participation rate of only 21% in the current workforce with only 25% of women owning a university degree. According to the Global Gender Gap Index Report 2022, Pakistan ranks 135 out of 156 countries for educational attainment, 145/156 for economic participation and opportunity, 143/156 for health and survival, and 95/156 for political empowerment.

As per the International Labour Organisation (ILO) estimates, the Female Labour Force Participation (FLFP) rates in Pakistan are very low; ranging from 14% to 22% over the period 1990-2019. The BOI additional secretary said the country’s current economic situation demands the active participation of women. “Enhancing female participation in the workforce, encouraging them to initiate startups, and using innovative ideas will surely help in resolving the persistent economic problems plaguing the country.”

Credit: INP-WealthPk