More women in boardrooms critical for progress

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Pakistan's corporate sector has traditionally been male-dominated, with women facing various impediments to senior roles. Female labour force participation (FLFP) rates in Pakistan are among the lowest in the region, with only 21% of the eligible female workforce formally working, and only 24% of the female population actively engaged in economic activities.

The representation of women in business leadership is more worrisome. Less than 5% of women are in top management positions in private enterprises, according to a survey conducted by the Pakistan Business Council and the International Finance Corporation. This underrepresentation also exists on corporate boards, where the gender disparity is sustained due to organisational biases, cultural norms and societal expectations.

Pakistan enacted the Companies Act of 2017 to encourage gender diversity in corporate governance to rectify this discrepancy. According to this law, enforced by the SECP, companies are required to have at least one female director on their boards. A step in the right direction though, only real implementation can make it effective.

Critics contend that significant change might not result from just meeting quotas without promoting an inclusive culture. This raises the question of whether companies with more gender-diverse leadership implement more robust sustainability and environmental strategies. A 2011-2018 study on the banking industry in Pakistan looked at how gender diversity on boards affected environmental sustainability (ES). The results show that boards with more women on them are more likely to enforce strict oversight and moral behaviour, which improves ES results.

This pattern is consistent with findings made worldwide. Comprehensive decision-making procedures, greater stakeholder engagement and a stronger focus on corporate social responsibility are frequently linked to gender-diverse boards. These qualities aid in the creation and implementation of strong environmental regulations. Board diversity, for example, has a favourable impact on corporate sustainability-related operations, particularly in developing nations with distinct cultural settings, according to a study published in Journal of Cleaner Production.

The advancement of women into leadership positions in Pakistan is hampered by several issues, notwithstanding legislative initiatives. Women's household duties are frequently given priority under traditional gender roles, which restricts their ability to succeed in their careers. A male-dominated business culture and prevailing preconceptions can prevent women from rising to high positions. Professional networks and mentorship programmes are frequently inaccessible to women.

The drive for gender diversity in corporate leadership has produced a range of outcomes on a global scale. For example, 42% of the FTSE's 350 board members in the UK are now female. Nonetheless, the majority hold non-executive positions, and there are still few female executive directorships. This situation necessitates meaningful participation in decision-making processes in addition to representation.

In Germany, female representation in senior management rose from 13.3% in 2020 to 25.4% in 2025 after a required quota law was introduced in 2020, mandating that management boards with more than three members include at least one woman. This implies that gender diversity can be significantly increased through the implementation of well-enforced regulations and cultural changes.

Pakistani businesses might think about implementing the following tactics to maximise the advantages of gender-diverse leadership for environmental sustainability: Promote an inclusive culture that appreciates a range of viewpoints in decision-making processes rather than just adhering to quotas; create mentorship programmes to help women advance their careers and get ready for leadership positions; put in place rules that support work-life balance, such as parental leave and flexible work schedules; hold training sessions to combat implicit prejudices and encourage gender awareness in businesses; and, to ensure openness, make companies responsible for their actions, publish diversity and sustainability reports on a regular basis.