By Azam Tariq

South Asia needs to accelerate investment in skills, productive employment, access to finance and market linkages to turn its large working-age population into a source of sustainable economic growth and poverty reduction, experts say.

The urgency is underscored by a World Bank report released on November 3, which shows that South Asia has approximately 1.17 billion working-age people, but its demographic window is gradually narrowing.

Only 60% of the region's working-age population is employed, while 88% of those employed work in the informal sector, often facing lower earnings and weaker job security.

The report, Demographic Change in South Asia: From Tailwinds to Headwinds for Development, calls for more productive jobs, greater access to finance for micro, small and medium enterprises, stronger education and skills development, and fewer barriers to women's employment.

These regional challenges are particularly relevant for Pakistan, where the World Bank's October 2026 Poverty and Equity Brief estimates that the national poverty rate increased from 22% in 2018–19 to 29% in 2024–25.

Against this backdrop, Minister of State for Planning, Development and Special Initiatives Chaudhry Armaghan Subhani told Wealth Pakistan that development ultimately needs to improve ordinary people's lives by creating jobs, reducing poverty and providing families with opportunities to build better futures.

He said financial assistance alone could not provide a lasting solution to poverty.

“We must also give people skills, jobs, and opportunities to earn a living,” he said, adding that these are essential for reducing poverty sustainably over time.

Subhani said Pakistan's development priorities include exports, digital services, clean energy and wider economic opportunities, while future cooperation with China should increasingly support job training, small businesses and opportunities for women, young people and less-developed areas.

Broadening the argument to the wider region, he stressed the importance of South Asian countries exchanging successful development practices, improving agricultural productivity, strengthening small businesses and expanding training and employment opportunities.

Echoing the need for a broader development framework, Dr Zafar Uddin Mahmood, Special Representative of the Prime Minister of Pakistan on China Affairs and President of the Understanding China Forum, told Wealth Pakistan that China's poverty alleviation experience offers valuable lessons for Pakistan and the wider South Asian region.

He said sustained economic growth, investment in human capital and infrastructure, together with effective governance, had played an important role in China's development trajectory.

“For Pakistan and South Asia, the priority is to translate our region’s immense human and economic potential into inclusive and sustainable development,” Mahmood said.

He added that closer cooperation with China in trade, investment, agriculture, technology, connectivity and skills development could create jobs, improve livelihoods and contribute to poverty reduction.

Mahmood stressed, however, that poverty alleviation could not be treated as a stand-alone initiative.

It required an integrated approach combining economic growth, education, healthcare, employment generation, social protection and rural development, supported by strong institutions, effective implementation and accountability.

While Mahmood focused on the wider policy framework, Dr Abid Qaiyum Suleri, Executive Director of the Sustainable Development Policy Institute, highlighted the practical relationship between skills, finance and market access.

Speaking to Wealth Pakistan, Suleri said South Asia needs to focus more strongly on converting skills into sustainable livelihoods and incomes.

He proposed what he described as a “golden triangle” of skills, microfinance and integration with markets as a practical model for tackling poverty.

Suleri said Pakistan could benefit from China's experience by establishing poverty-reduction demonstration sites in selected districts and adapting successful approaches to local economic and social conditions.

He also called for renewed attention to vocational training to ensure that skills development is more closely linked with employment, entrepreneurship and actual market demand.

The experts' recommendations broadly align with the World Bank's assessment that South Asia's remaining demographic dividend will depend on whether countries can create better-paying jobs, improve human capital and provide small businesses with greater access to finance.

For Pakistan, the challenge extends beyond expanding social protection to creating sustainable pathways out of poverty through productive employment, marketable skills, entrepreneurship and stronger market connections.

Combining these measures with investment in human development, institutional capacity and regional economic cooperation could help vulnerable households build more secure livelihoods while supporting long-term poverty reduction across South Asia.

Credit: INP-WealthPk