Ayesha Saba

Integrating Pakistan's growing youth population into the labor market is challenging but achievable with right policies and investments. By effectively managing this youth surge, Pakistan can turn it into a demographic advantage, driving sustained and rapid economic growth. Talking to WealthPK, Dr. Ahmed Faraz, an economist at the Pakistan Institute of Development Economics, (PIDE), said Pakistan’s demographic dividend could only be realized if its young population was equipped with relevant skills and employment opportunities. He emphasized the importance of investing in education and vocational training to align the skills of the workforce with the demands of the market. “We need to overhaul our education system and focus on skill development. Only then can we prepare our young people for the future jobs.” Dr Faraz also highlighted the potential of the information technology (IT) sector as a major employer for the youth. With the global demand for IT services growing, Pakistan’s young population, if trained properly, can cater to this demand and contribute significantly to the country’s GDP.

He cited the success of neighboring India, where the IT sector has become a backbone of the economy, as a model for Pakistan to emulate. The agriculture sector, which employs a significant portion of the population, also needs modernization. By adopting advanced agricultural practices and technologies, productivity can be increased, leading to higher incomes and more jobs, he said. He argued that the government should incentivize innovation in agriculture and support small and medium-sized enterprises (SMEs) in the sector to create a ripple effect in employment generation. “Currently, the female labor force participation in Pakistan is one of the lowest in the world. There’s need to frame policies that support women’s education, provide safe work environments, and promote work-life balance. Women are a vital part of the labor force, and their inclusion is key to economic growth,” he asserted.

Pleading anonymity, an official from the Planning Ministry told WealthPK that youth unemployment was a critical challenge associated with Pakistan's significant population growth. He noted that, according to the State Bank, approximately 1.8 million individuals join the labor market each year. The government has prioritized youth empowerment and productivity through the National Youth Development Framework (NYDF), which focuses on three key areas: education, employment, and engagement. The NYDF outlines strategic, practical, and timely investments across six main thematic areas: integrating marginalized youth, enhancing employment and economic empowerment, promoting civic engagement, ensuring social protection, improving health and wellbeing, and implementing youth-focused institutional reforms. Additionally, Technical and Vocational Education and Training (TVET) is an integral part of the long-term national development plan.

Credit: INP-WealthPk