BRIEF DESCRIPTION OF THE COUNTRY'S RELATIONSHIP WITH SDG 8

As one of the most populous countries in the world, with an estimated population of 251 million people as of 2024, Pakistan plays an important role in the global achievement of SDG 8 and the UN’s 2030 Agenda (World Bank, n.d.). Pakistan was the first country to adopt the SDGs as its own national development agenda, demonstrating a remarkable commitment towards the UN’s 2030 Agenda, whereas its specific commitment to SDG 8 is reflected by the Decent Work Country Programme for Pakistan, developed jointly by the Government of Pakistan, the employers’ and workers’ organizations, and the International Labour Organization, which aims to promote decent work, social protection coverage, labour rights, and safe and inclusive workplaces (Government of Pakistan, 2022, p. 10; International Labour Organization [ILO] et al., 2024, p. 4). 

Nevertheless, Pakistan remains considerably behind in several areas of SDG 8. The country faces irregular growth patterns and macroeconomic imbalances, low employment, widespread informal employment, persistent unemployment, and significant discrimination towards women in the labour market (Pakistan Bureau of Statistics, 2025, p. 21; International Labour Organization et al., 2024, pp. 9-14).

CURRENT CHALLENGES AND RECENT DEVELOPMENTS

Pakistan’s most significant challenge in achieving SDG 8 is the enormous size of its informal economy. In 2024, Pakistan’s informal economy employed 72.5% of the workforce, with these workers often being employed within micro-enterprises with fewer than ten workers that remain outside the scope of labour, social security, and tax laws (ILO et al., 2024, p. 11). Workers within the informal economy face substantial risks to their financial security and health. Employment within the informal economy is typically accompanied by precarious working conditions, unregulated working arrangements, and a complete lack of social and legal protection that leave most workers in an extremely vulnerable position (ILO, 2015).

Recognising the importance of the labour market’s formalisation, Pakistan has recently intensified its efforts to facilitate the transition of enterprises and workers into the formal economy. In May 2026, the International Labour Organization and the Government of Pakistan  launched the country’s first national roadmap for small- and medium-sized enterprises’ and workers’ formalisation, which seeks to support their transition into the formal economy by combining improvements in the regulatory framework with measures to strengthen enterprise growth, decent work, and access to social protection (ILO, 2026).

Moreover, Pakistan’s economic growth has been somewhat unstable over the last few years. The COVID-19 pandemic, domestic political instability, weak governance and institutions, international crises in the region, and major floods in 2022 have hampered consumer demand and economic development. The disastrous floods in 2022 had a particularly significant effect on the weak economic performance of recent years, as 8 million people were displaced and 1,700 killed, while virtually every sector of the Pakistani economy suffered extensive damage, estimated to be equivalent to 4.8% of Pakistan’s GDP in 2022 (ILO et al., 2024, p. 6). Such natural disasters emphasise the need to transition towards a more environmentally sustainable economic development, as a significant part of Pakistan’s population remains extremely vulnerable to natural catastrophes. Changing weather patterns caused by climate change have already triggered extreme climate events, severely affecting the agricultural sector, which employs more than 40% of the country’s population (ILO et al., 2024, pp. 7-8).

Another major challenge is the limited participation of women in the labour market. Though labour force participation has improved throughout the years, a significant gender gap signalling the presence of systemic discrimination towards women remains. In 2024-2025, the labour force participation rate stood at 68.7% for men and only 22.7% for women (Pakistan Bureau of Statistics, 2025, p. 7). As reported by the ILO et al. (2024), most working women are employed in the agricultural sector, where approximately 75% of them do not receive any payment for their work, resulting in a large gender wage gap and socio-economic disparities (pp. 13-14). Consequently, increasing female participation will not be sufficient to achieve SDG 8, and Pakistan must also ensure that women gain access to productive, paid, and adequately protected employment.

LIST OF REFERENCES AND USEFUL LINKS

Government of Pakistan. (2022). Pakistan’s Voluntary National Review: Implementing Best Practices to Build Forward Better in the Decade of Action. United Nations High-Level Political Forum on Sustainable Development. https://hlpf.un.org/sites/default/files/vnrs/2022/VNR%202022%20Pakistan%20Report.pdf

International Labour Organization. (2015, March 23). Informal economy: a hazardous activity. Retrieved September 7, 2026, from https://www.ilo.org/resource/other/informal-economy-hazardous-activity

International Labour Organization, Government of Pakistan, Employers’ Organization, & Workers’ Organization. (2024). Decent Work Country Programme for Pakistan (2023-2027). https://www.ilo.org/sites/default/files/2024-03/ILO_Pakistan_DWCP%20WEB_v7_photos_FINAL_0.pdf

International Labour Organization. (2026). The national road map for SME and worker formalization. https://doi.org/10.54394/00034256

Pakistan Bureau of Statistics. (2025). Pakistan Labour Force Survey 2024-25. Ministry of Planning, Development & Special Initiatives. https://www.pbs.gov.pk/wp-content/uploads/2020/07/LFS-2024-25-Annual-Report.pdf

World Bank. (n.d.). Overview: Pakistan. Retrieved September 7, 2026, from https://www.worldbank.org/ext/en/country/pakistan