Women ride Pakistan’s economic crisis into the workplace

In this photograph taken on August 19, 2024, Amina Sohail, a motorbike rider with a local ride-hailing service provider Bykea, leaves to deliver parcels in Karachi. (AFP)
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Updated 08 September 2024
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Women ride Pakistan’s economic crisis into the workplace

  • Pakistan was first Muslim nation to be led by a woman PM in 1980s, women CEOs grace power lists in Forbes magazine, make up ranks of police and military
  • But much of Pakistani society operates under a traditional code which requires women to have permission from their family to work outside of the home

KARACHI: Amina Sohail veers through heavy traffic to pick up her next passenger — the sight of a woman riding a motorcycle drawing stares in Pakistan’s megacity of Karachi.
The 28-year-old is the first woman in her family to enter the workforce, a pattern emerging in urban households coming under increasing financial pressure in Pakistan.
“I don’t focus on people, I don’t speak to anyone or respond to the hooting, I do my work,” said Sohail, who joined a local ride-hailing service at the start of the year, transporting women through the dusty back streets of the city.
“Before, we would be hungry, now we get to eat at least two to three meals a day,” she added.
The South Asian nation is locked in a cycle of political and economic crises, dependent on IMF bailouts and loans from friendly countries to service its debt.
Prolonged inflation has forced up the price of basic groceries such as tomatoes by 100 percent. Electricity and gas bills have risen by 300 percent compared to July last year, according to official data.
Sohail used to help her mother with cooking, cleaning and looking after her younger siblings, until her father, the family’s sole earner, fell sick.
“The atmosphere in the house was stressful,” she said, with the family dependent on other relatives for money. “That’s when I thought I must work.”
“My vision has changed. I will work openly like any man, no matter what anyone thinks.”




In this photograph taken on August 19, 2024, Amina Sohail, a motorbike rider with a local ride-hailing service provider Bykea, speaks during an interview with AFP in Karachi. (AFP)

Pakistan was the first Muslim nation to be led by a woman prime minister in the 1980s, women CEOs grace power lists in Forbes magazine, and they now make up the ranks of the police and military.
However, much of Pakistani society operates under a traditional code which requires women to have permission from their family to work outside of the home.
According to the United Nations, just 21 percent of women participate in Pakistan’s work force, most of them in the informal sector and almost half in rural areas working in the fields.




In this photograph taken on August 17, 2024, receptionist Hina Saleem talks on a telephone at a leather factory in Karachi. (AFP)

“I am the first girl in the family to work, from both my paternal and maternal side,” said Hina Saleem, a 24-year-old telephone operator at a leather factory in Qur’angi, Karachi’s largest industrial area.
The move, supported by her mother after her father died, was met with resistance from her extended family.
Her younger brother was warned that working could lead to socially unacceptable behavior, such as finding a husband of her choice.
“My uncles said ‘get her married’,” she told AFP. “There was lots of pressure on my mother.”
At the changeover of shifts outside the leather factory, workers arrive in painted buses decorated with chinking bells, with a handful of women stepping out amid the crowd of men.




In this photograph taken on August 17, 2024, employee Anum Shahzadi sorts jackets at a leather factory in Karachi. (AFP)

Nineteen-year-old Anum Shahzadi, who works in the same factory inputting data, was encouraged by her parents to enter the workforce after completing high school, unlike generations before her.
“What is the point of education if a girl can’t be independent,” said Shahzadi, who now contributes to the household alongside her brother.
Bushra Khaliq, executive director for Women In Struggle for Empowerment (WISE) which advocates for political and economic rights for women, said that Pakistan was “witnessing a shift” among urban middle class women.
“Up until this point, they had been told by society that taking care of their homes and marriage were the ultimate objective,” she told AFP.
“But an economic crunch and any social and economic crises bring with them a lot of opportunities.”




In this photograph taken on August 18, 2024, a homemaker Farzana Augustine prepares lunch for her son at their house in Karachi. (AFP)

Farzana Augustine, from Pakistan’s minority Christian community, earned her first salary last year at the age of 43, after her husband lost his job during the Covid-19 pandemic.
“My wife had to take over,” Augustine Saddique explained to AFP.
“But it is nothing to be sad about, we are companions and are running our house together.”
The sprawling port metropolis of Karachi, officially home to 20 million people but likely many millions more, is the business center of Pakistan.
It pulls in migrants and entrepreneurs from across the country with the promise of employment and often acts as a bellwether for social change.




In this photograph taken on August 16, 2024, childminder Zahra Afzal heads to work, in Karachi. (AFP)

Nineteen-year-old Zahra Afzal moved to Karachi to live with her uncle four years ago, after the death of her parents, leaving her small village in central-eastern Pakistan to work as a childminder.
“If Zahra was taken by other relatives, she would have been married off by now,” her uncle Kamran Aziz told AFP, from their typical one room home where bedding is folded away in the morning and cooking is done on the balcony.
“My wife and I decided we would go against the grain and raise our girls to survive in the world before settling them down.”
Afzal beams that she is now an example for her sister and cousin: “My mind has become fresh.”


Pakistan to open today televised bidding for privatization of loss-making flag carrier PIA

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Pakistan to open today televised bidding for privatization of loss-making flag carrier PIA

  • Pakistan plans to privatize 75 percent of the carrier, while retaining its name and branding
  • Three contenders remain in race to buy the airline after Fauji Fertilizer Company’s withdrawal

ISLAMABAD: Pakistan is set to hold a live broadcast bidding process today, Tuesday, for the privatization of the Pakistan International Airlines (PIA), officials said, with three consortiums contending to buy the loss-making national flag carrier.

The government prequalified four investor groups in July, but Fauji Fertilizer Company, part of a military-backed conglomerate, withdrew from the process recently.

The remaining contenders include two consortiums led by Lucky Cement and Arif Habib Corporation, and a private airline Airblue.

Pakistan aims to privatize 75 percent of the carrier, while retaining its name and branding, according to PM Shehbaz Sharif’s office. The decision marks Islamabad’s most aggressive push in decades to reform the debt-ridden airline, which has accumulated more than $2.8 billion in losses.

Speaking to Arab News, Muhammad Ali, adviser to the prime minister on privatization, said the exit of Fauji Fertilizer Company from the bidding process does not preclude future collaboration.

“We don’t know if Fauji [Fertilizer Company] will partner or not with the winning bidder. However, they have withdrawn from the race,” he said.

The sealed bids will be submitted by the bidders at 10:30am on Tuesday.

“Reference price for PIACL’s (Pakistan International Airlines Corporation Limited) bidding will only be approved by the Privatization Commission Board and the Cabinet Committee on Privatization after bids have been received,” the government said in a statement on Monday.

“The bids will be opened in a ceremony starting at 3:30pm [on Tuesday] in the presence of the bidders. The bids and the reference prices will be announced and the bidding will be concluded as per agreed terms.”

PIA’s sale is a central to Islamabad’s economic reform agenda under a $7 billion bailout agreed last year with the International Monetary Fund (IMF). Officials say the airline’s privatization is essential to halt recurring losses, revive international routes and ease pressure on the budget.

This is Pakistan’s third attempt at PIA privatization, following a failed 2024 auction that received only one bid of $35 million that was far below the government’s nearly $300 million asking price, according to Privatization Commission records. Islamabad is targeting $302 million in privatization proceeds this year.

“Privatization of PIA will avoid burden on exchequer, expand airline’s fleet, improve service quality, create employment opportunities, and help Pakistan’s aviation, tourism and GDP (gross domestic product) to grow,” Ali said.

Once considered among Asia’s leading airlines, PIA has accumulated more than $2.8 billion in losses. The airline has struggled with chronic mismanagement, political interference, overstaffing, mounting debt and operational issues that led to a 2020 ban on flights to the European Union, United Kingdom and the United States (US) after a pilot licensing scandal, further shrinking PIA revenues.

Pakistan’s Finance Adviser Khurram Schehzad said PIA used to be the region’s “best airline” in the 70s and 80s, adding that Pakistani diaspora in various countries wants their own airline to flourish again.

“Airlines help turnaround the economy, promote growth, investment and economic activity through multiple ways,” he said, noting, “We are a country of 250 million people, with a huge diaspora.”

Former finance minister Miftah Ismail believed the airline’s privatization would benefit consumers and taxpayers even if it did not materially move the macroeconomic needle.

“PIA’s privatization will have a positive impact on the aviation industry,” he told Arab News. “There will be greater competition and hopefully better service for consumers. It will also save the money people of Pakistan have to pay every year for PIA to keep going.”

Ismail noted the government had already transferred around Rs800 billion ($2.85 billion) of PIA’s liabilities onto the public balance sheet ahead of the sale.

“So, PIA has lost 800 billion rupees of people’s money. That money is gone forever and the consumers will have to pay, but at least further losses will be cut,” he said.

To a question, he said the process of privatization was “transparent” this time around but cautioned that broader privatization momentum remains limited only to state assets like power companies, oil exploration groups and gas distribution companies.

Islamabad has launched a five-year privatization plan covering 24 state entities between 2024 and 2029, including the Roosevelt Hotel in New York, three banks, power distribution companies, and the Postal Life Insurance Company, according to the Privatization Commission.

Aviation industry veterans say structural constraints under state ownership doomed repeated turnaround plans for PIA.

Speaking to Arab News, former PIA chief executive officer Musharraf Rasool Cyan pointed to “pervasive interference” and “rigid” public-sector rules for the failure of PIA.

“Due to interference by institutions like the judiciary and even parliament, the management cannot take market-aligned decisions,” he said, citing non-performance-based contracts, slow procurement rules, union pressures and corruption.

Cyan said PIA failed to adapt as competition intensified from the 1990s, lagged in network optimization and technology, and suffered from weak accountability.

“The work culture became more political than professional,” he said, adding the airline now needs equity injections and a fleet renewal.