The main purpose of this paper is to critically assess the context and policy environment for the recent development of women’s entrepreneurship in Pakistan. The paper highlights the fact that Pakistani women have been the passive recipients of various opportunities and programmes related to welfare and development, e.g. related to skill training, but the political commitment needed for achieving a fundamental change of the role of women in society is only slowly emerging. The Pakistani system has traditionally favoured large companies rather than SMEs and entrepreneurs, which has resulted in an economic contribution which is only slowly accelerating. Though there are some positive trends for empowering women entrepreneurs, the gender gap actually appears to be increasing in Pakistan.