More than 58% Pakistani listed companies have women on the board — SECP data

Female Employees working at a newsroom of a television channel in Karachi, Pakistan April 11, 2018. (Reuters /File)

• About 8.7 percent Pakistani women hold board chair positions which is above the international average of 5.3 percent
• Despite encouraging data, women belonging to lower middle classes still require permission from male family members to work

KARACHI: The workplace gender gap at top organizational levels in Pakistan is gradually narrowing after the country’s securities and exchange commission (SECP) in 2017 made it mandatory for public limited companies to appoint at least one female representative on their boards of directors, as per official data.
The proportion of listed companies with women directors shows an increase from 31 percent in 2017 to 58 percent in 2019, according to statistics compiled by the SECP.
“More and more women are now joining workforce at all levels and in all fields of businesses,” Shanaz Ramzi, president of the Women Chamber of Commerce and Industry Karachi South, told Arab News on Monday. “This owes to the opportunities and financial constraints which make family members participate in a joint struggle for survival.”
According to official data, the number of women directors has increased by three percent since the SECP regulation was introduced and at least 33 companies are now managed by chairwomen. Previously, this number was 24, suggesting a 35.7 percent increase.
Women constitute about 48.5 percent of Pakistan’s population (216 million) and contribute 22.8 percent to the country’s labor force.
About 8.7 percent Pakistani women hold board chair positions which is above the international average of 5.3 percent.
To facilitate and encourage businesswomen in Pakistan, the central bank has also increased the concessional financing limit for women entrepreneurs from Rs1.5 million to Rs5 million.
“Women chambers hold training and awareness sessions for women entrepreneurs to help them avail financing facilities and opportunities,” Ramzi added.
Government officials say female participation in businesses positively impacts returns on assets (ROA) and equity (ROE).
“In 2019, the ROA of companies without women was 1.73 percent while it was 2.86 percent for companies with women directors on their board. Similarly, the ROE of companies without women was 9.4 percent and the ROE of companies with women directors was 14.83 percent,” Sadia Khan, an SECP commissioner for corporate supervision, said in a statement.
Businesswomen say despite growth in entrepreneurship, it is still not an easy ride for the country’s women, particularly those belonging to the lower middle classes.
“They still have to convince their male family members to go out and work,” Ramzi said, adding: “The society is yet to accept it as a social norm.”
According to legal experts, the country’s law provides equal business opportunities for male and female citizens and it is societal norms that create unnecessary impediments.
“Implementation of laws is the biggest challenge,” Farkhanda Jabeen, the only female member of the Sindh Bar Council, told Arab News. “Legally, there is no gender discrimination when it comes to this issue, but society does not always provide space to women.”
“To make women financially independent, society will have to give them space so they can fully participate in decision making processes and contribute to the development of their country,” Jabeen noted.