What You Need to Know About Labour in Pakistan Today

When we talk about socio-economic realities in Pakistan, one subject that repeatedly demands attention is labour in Pakistan. From construction sites to textile factories, and from domestic households to modern-day tech hubs, the Pakistani workforce is not only vast but also deeply complex. Understanding how this labour system works, its struggles, and its importance to the national economy is essential—not just for policy makers but also for every citizen. At Paradigm Shift, we explore how historical, political, and economic dynamics influence the lives of workers across the country.

A Historical Lens on the Labour Force

To truly grasp the current state of labour in Pakistan, we must first look at how it evolved. Post-independence, Pakistan inherited a semi-industrialized economy. With agriculture as the backbone and cottage industries playing a pivotal role, labour was mostly informal and unregulated. However, over the decades, industrial growth and urbanization changed this landscape significantly.

In the 1960s and 70s, with the rise of large-scale manufacturing and textile production, Pakistan saw a surge in urban labour demand. Unfortunately, the legal protections and infrastructure needed to support this boom were not developed at the same pace. As a result, workers continued to face long hours, meager wages, and poor workplace conditions—issues that are still prevalent today.

The Labour Force Today: Informal and Underrepresented

Fast forward to 2025, the majority of the workforce still operates within the informal sector. In fact, estimates suggest that over 70% of labour in Pakistan is informal. This includes domestic workers, street vendors, daily-wage construction workers, and employees of small businesses who often receive no job security or benefits.

Despite their numbers, these workers lack a voice. They are largely absent from national labour statistics and are not covered under basic labour laws. This makes it incredibly difficult to implement reforms or ensure rights like minimum wage, social security, or occupational safety.

Moreover, children and women represent a significant portion of this workforce. Many are pushed into work due to poverty, limited access to education, or lack of household support systems. Sadly, they often end up being the most exploited segment of the labour population.

Legal Framework: On Paper vs. On Ground

Pakistan does have laws designed to protect workers. The Industrial Relations Act, the Factories Act, and the Minimum Wages Ordinance are some examples. But implementation is where the challenge lies. Weak institutional capacity, lack of political will, and corruption often prevent these laws from being enforced effectively.

Take minimum wage, for example. Although provincial governments revise it periodically, many workers—especially in informal settings—don’t even know what the minimum wage is, let alone receive it. Labour inspectors are few and far between, and enforcement mechanisms are outdated or underfunded.

Labour Unions: A Diminishing Power

Another concerning trend is the weakening of labour unions in the country. Once a powerful force in advocating for worker rights, unionization in Pakistan has seen a sharp decline. Employers often discourage or outright ban union activities, and in many cases, workers fear job loss if they speak out.

Still, some unions continue to fight for better wages, benefits, and working conditions. For example, the All Pakistan Textile Mills Association (APTMA) and other sector-based unions have occasionally managed to negotiate on behalf of labourers. However, these efforts are often localized and not scalable across the board.

Technology and the New Labour Frontier

While traditional labour jobs still dominate, the digital economy is slowly reshaping the future of labour in Pakistan. Freelancing, ride-sharing, food delivery, and remote work have created new avenues for earning. Pakistan is now among the top countries contributing to the global freelancing economy, particularly in tech and creative fields.

Yet, this shift comes with its own challenges. Gig economy workers also fall into grey areas of labour law. They often work without contracts, health coverage, or any kind of job protection. Moreover, the lack of digital infrastructure in rural areas limits this opportunity to urban centers, leaving a digital divide that needs immediate attention.

The Way Forward: What Needs to Change

To improve the state of labour in Pakistan, a multi-pronged approach is essential. Here are a few key recommendations:

• Formalizing the Informal Sector: This is arguably the most crucial step. Incentives like microloans, tax breaks, or training programs can help small businesses register formally. Once within the legal framework, it's easier to ensure compliance with labour laws.

• Strengthening Labour Institutions: Labour departments need more funding, training, and technology to function effectively. Labour courts should be more accessible, and inspectors should be regularly evaluated for performance and transparency.

• Empowering Workers: Public awareness campaigns can educate workers about their rights. Legal aid services should also be expanded so workers can seek justice without fear or financial burden.

• Focusing on Inclusion: Special programs for women and youth can bridge the existing employment gaps. Skill development centers, childcare facilities, and safe transportation can significantly boost female participation in the workforce.

• Modernizing Labour Laws: As the nature of work evolves, so must our laws. The government should consult stakeholders, including gig workers, to draft policies that reflect the realities of today’s labour environment.

Labour and the Economy: An Interconnected Relationship

There’s no doubt that labour in Pakistan plays a pivotal role in shaping the economy. Whether it's through remittances from overseas workers or the efforts of local industries, labour fuels productivity and growth. But for this contribution to be sustainable, it must be supported by fair policies and robust institutions.

When labour is treated with dignity and compensated fairly, it creates a ripple effect: reduced poverty, better health, increased education levels, and ultimately, a more stable society. Therefore, investing in labour rights isn’t just a moral obligation—it’s an economic strategy.

Final Thoughts from Paradigm Shift

At Paradigm Shift, we believe that meaningful change starts with informed discussions. The issue of labour in Pakistan is not just a policy debate—it’s a human story. Every day, millions of workers power our cities, build our infrastructure, produce our goods, and deliver our services. They deserve better—better wages, better conditions, and better opportunities.

To drive Pakistan forward, we must shift the paradigm from exploitation to empowerment. And that begins by recognizing and respecting the value of every single worker.