Pakistan's Invisible Economy: Unpaid Care Work's Trillion-Rupee Shadow

Introduction

Pakistan's national accounts, the bedrock of economic policy and international comparison, present a picture of the economy that is increasingly incomplete. While GDP figures meticulously track the production of goods and services in the formal sector, they systematically overlook a colossal economic engine: unpaid care work. This labour, encompassing childcare, eldercare, household chores, and community support, is overwhelmingly performed by women, forming the invisible scaffolding upon which formal economies and social structures are built. Recent analyses, particularly those leveraging time-use surveys, are beginning to quantify this immense, yet unacknowledged, contribution. The implications for understanding Pakistan's true economic potential, its gender disparities, and the pathways to inclusive growth are profound. Ignoring this vast reservoir of labour is not merely an accounting oversight; it is a fundamental misdiagnosis of the nation's productive capacity and a significant barrier to unlocking the full potential of its human capital, particularly its women.

Context and Historical Underpinnings of Unpaid Care Work

The disproportionate burden of unpaid care work on women is not a recent phenomenon but a deeply entrenched socio-economic pattern, often rooted in historical gender roles and patriarchal structures. In Pakistan, as in many South Asian nations, traditional societal expectations have long assigned primary responsibility for domestic and caregiving duties to women, while men are primarily viewed as breadwinners. This division of labour, reinforced through cultural norms and educational systems, has historically limited women's access to formal education and employment opportunities. Post-independence economic development strategies in Pakistan, like those in many developing countries, largely focused on formal sector growth and industrialisation, often overlooking the foundational role of household production and care. National accounting systems, modelled on Western industrial economies, were designed to measure market-based transactions, rendering the non-market value of household production invisible. This has perpetuated a cycle where the economic contribution of care work remains unrecognised, undervalued, and under-supported by public policy. Efforts to measure this invisible economy have gained traction globally over the past few decades, driven by feminist economics and international development agendas. Time-use surveys, which meticulously record how individuals spend their time, have become the primary tool for quantifying unpaid work. These surveys reveal that while men's time is predominantly allocated to paid work and leisure, women's time is split between paid work (if employed) and a substantial amount of unpaid care and household labour. This dual burden significantly curtails women's opportunities for skill development, career advancement, and participation in the formal economy, thereby impacting overall economic growth and gender equality.

Measuring the Invisible: Time-Use Surveys and Valuation Methodologies

Quantifying the economic value of unpaid care work is a complex but increasingly vital task. The primary methodology employed is the time-use survey, which meticulously records how individuals allocate their 24-hour day across various activities. In Pakistan, recent time-use surveys conducted by institutions like the Pakistan Institute of Development Economics (PIDE) have provided granular data on this front. According to PIDE's 2024 findings, women in Pakistan dedicate an average of 6.5 hours per day to unpaid care and household activities. This contrasts sharply with men, who spend an average of 2.5 hours on similar tasks. This significant time deficit for women directly translates into reduced opportunities for engagement in paid employment, education, and leisure. To assign an economic value to this time, economists typically employ two main approaches: the 'specialist' or 'replacement cost' method and the 'generalist' or 'opportunity cost' method. The Replacement Cost Approach The replacement cost method estimates the value of unpaid care work by calculating what it would cost to hire individuals to perform these tasks in the market. This involves identifying the types of unpaid work (e.g., childcare, cooking, cleaning, eldercare) and then determining the market wage rates for professionals who perform these services. For instance, the cost of hiring nannies, cooks, cleaners, and home health aides would be aggregated. Using this approach, PIDE (2024) estimated the annual value of unpaid care work in Pakistan to be approximately PKR 3.5 trillion. This figure represents a substantial portion of the national economy, equating to roughly 45% of Pakistan's formal GDP in 2024. This valuation underscores that unpaid care work is not merely a social phenomenon but a significant economic activity that contributes substantially to household well-being and the functioning of the formal economy by enabling paid labour. The Opportunity Cost Approach The opportunity cost method values unpaid work based on what the individual performing the work could have earned in the formal labour market. This is particularly relevant for women who are not in paid employment. If a woman could potentially earn PKR 50,000 per month in a formal job, the time she spends on unpaid care is valued at that potential earning. This method highlights the economic sacrifice women make by undertaking care responsibilities. While the opportunity cost method can yield higher valuations, the replacement cost method is often preferred for national accounting purposes as it reflects the economic contribution to society more broadly, irrespective of the individual's potential earnings. Both methods, however, consistently demonstrate the immense economic significance of unpaid care work, revealing a substantial 'shadow economy' that is critical for societal sustenance.

The Gendered Impact: Female Labour Supply and Economic Participation

The most significant implication of the vast disparity in unpaid care work is its direct impact on female labour force participation (FLFP). In Pakistan, FLFP rates have remained stubbornly low, standing at 22.3% in 2023, according to World Bank data. This is considerably lower than regional peers like Bangladesh (36.3%) and significantly below global averages. The time-use data provides a clear causal link: the extensive hours women dedicate to unpaid care duties leave them with significantly less time and energy for paid employment, skill development, and career progression. This dual burden creates a structural impediment to women's economic empowerment. When women are primarily responsible for childcare, eldercare, and household management, their ability to commit to full-time, formal employment is severely constrained. This often leads them to seek only part-time or informal work, which typically offers lower wages, fewer benefits, and less job security. Furthermore, the societal expectation that women will manage these domestic responsibilities can lead employers to perceive them as less reliable or committed workers, further limiting their access to formal sector jobs. Structural Barriers to Female Employment The time spent on unpaid care work is not the only factor limiting FLFP, but it is a primary structural driver. Other contributing factors include social norms that discourage women from working outside the home, safety concerns in public spaces and workplaces, lack of affordable and accessible childcare facilities, and discriminatory hiring practices. However, the sheer volume of time dedicated to unpaid care work acts as a fundamental constraint that exacerbates these other barriers. For instance, the absence of widespread, affordable childcare services means that mothers must either reduce their working hours, forgo employment altogether, or rely on informal, often unpaid, care from family members (usually other women). This creates a dependency cycle where the burden of care is simply shifted within the female kinship network, rather than being alleviated. The lack of adequate eldercare facilities similarly places a heavy load on women, particularly as Pakistan's population ages. Economic Consequences of Low FLFP The low FLFP rate has substantial economic consequences for Pakistan. It represents a significant loss of potential human capital and productive capacity. If a substantial portion of the female population were to participate more fully in the formal economy, it could lead to higher GDP growth, increased household incomes, and greater economic diversification. Moreover, greater female economic participation is linked to improved health and education outcomes for children and greater overall societal well-being. The economic valuation of unpaid care work, therefore, serves as a critical indicator of this lost potential. By acknowledging and attempting to quantify this work, policymakers can begin to understand the true cost of gender inequality in the labour market and the economic benefits of investing in policies that support caregivers and promote shared domestic responsibilities.

Policy Implications and the Path Forward

The recognition of unpaid care work's economic value and its impact on female labour supply necessitates a fundamental shift in policy priorities. Current national strategies often fail to account for this critical dimension, leading to suboptimal outcomes in economic growth, poverty reduction, and gender equality. Reforming National Accounts and Economic Policy Firstly, national accounting systems need to be reformed to incorporate the value of unpaid care work. While full integration into GDP might be complex, regular reporting and estimation of this value, similar to how environmental accounts are developed, would provide policymakers with a more accurate picture of the economy's true productive capacity. This would also help in understanding the economic rationale for investing in care infrastructure and support systems. Secondly, economic policies must explicitly address the burden of unpaid care. This includes investing in public services that reduce the time burden on caregivers, such as: * Affordable and Accessible Childcare: Expanding public and subsidised childcare facilities can free up women's time for paid work and education. This has been a key driver of increased FLFP in countries like South Korea and Malaysia. * Elderly Care Support: Developing community-based eldercare services and support networks can alleviate the pressure on families, which disproportionately falls on women. * Improved Public Utilities: Investments in reliable water, sanitation, and energy infrastructure can significantly reduce the time spent on household chores. Promoting Shared Domestic Responsibilities Beyond infrastructure, policy must also focus on changing social norms and promoting the equitable sharing of domestic and care responsibilities between men and women. This can be achieved through: * Parental Leave Policies: Implementing and encouraging paid parental leave for both mothers and fathers can foster a culture of shared caregiving from the outset. * Awareness Campaigns: Public campaigns that highlight the value of care work and promote gender equality in domestic responsibilities can help shift societal attitudes. * Educational Reforms: Integrating gender equality and shared responsibilities into school curricula can lay the foundation for more equitable partnerships in the future. Empowering Female Labour Force Participation Finally, policies aimed at directly increasing FLFP must be strengthened. This includes measures such as: * Skills Development and Vocational Training: Providing women with access to relevant skills training can enhance their employability and earning potential. * Addressing Safety Concerns: Improving safety in public transport and workplaces can make it easier for women to commute and work outside the home. * Financial Inclusion: Expanding access to financial services for women can empower them economically and support entrepreneurship. By acknowledging and valuing unpaid care work, Pakistan can unlock a significant source of economic potential, foster greater gender equality, and build a more inclusive and prosperous society. The data is clear: the invisible economy is a visible opportunity waiting to be harnessed.

Strengths, Risks & Opportunities — Strategic Assessment

Pakistan's economy is at a critical juncture where understanding its full productive potential is paramount. The recognition of unpaid care work presents both significant opportunities and inherent risks if not adequately addressed.

What Happens Next — Three Scenarios

The trajectory of addressing unpaid care work in Pakistan will significantly shape its future economic and social landscape. The following scenarios outline potential pathways:

Conclusion & Way Forward

The quantification of unpaid care work in Pakistan, revealing its multi-trillion rupee economic value, is a critical step towards a more accurate understanding of the nation's economy. This 'invisible' labour, predominantly performed by women, acts as a fundamental constraint on female labour force participation, thereby limiting Pakistan's overall productive capacity and perpetuating gender inequality. The current policy framework, which largely ignores this economic engine, must be reformed to reflect its significance. Moving forward, Pakistan must adopt a multi-pronged strategy. This involves not only integrating the valuation of unpaid care into national accounts to inform policy but also making substantial investments in public care infrastructure, such as affordable childcare and eldercare services. Simultaneously, concerted efforts are needed to challenge entrenched social norms and promote the equitable sharing of domestic responsibilities between men and women. By addressing the structural barriers posed by unpaid care work, Pakistan can unlock the immense potential of its female population, driving economic growth, fostering social equity, and building a more resilient and prosperous future for all its citizens.