Ayesha Saba

Pakistan risks underutilizing the potential of its youth bulge — making over 60% of the population — due to the fragmented workforce planning, skill mismatches, and poor policy coordination. Without cohesive strategies, this demographic potential could exacerbate unemployment and social instability instead of driving economic growth, warned experts.

In a conversation with WealthPK, Dr. Amna Hafeez, labour economist at Karachi-based IBA Centre of Excellence, said, Pakistan’s educational and vocational training systems are not aligned with the evolving market needs, especially in sectors such as technology, renewable energy, and services.

“While thousands of graduates enter the workforce each year, many lack the technical or soft skills required by employers, leading to high unemployment rates among the educated youth,” she explained. “The agriculture sector, which employs nearly 40% of the workforce, remains underproductive due to outdated practices and limited access to modern technology.

Meanwhile, the manufacturing sector has not expanded enough to absorb the growing labour force. Resultantly, the informal economy dominates, offering low wages and no job security,” she said. “Without targeted industrialization and agricultural modernization, Pakistan cannot create enough quality jobs.

The youth bulge will only translate into a demographic dividend if we invest in human capital and align education with market needs,” she added. Aliya Imran, a gender policy expert, pointed to gender disparities as a critical barrier. “The female labour force participation in Pakistan is among the lowest in the world, hovering around 22%.

Cultural norms, safety concerns, and lack of childcare support prevent women from contributing fully to the economy. Excluding half of the population from the workforce is a massive loss for Pakistan’s growth potential. The policymakers must address structural barriers and promote inclusive employment policies to unlock this untapped potential,” she said.

Aliya said fragmented policymaking across ministries and provincial departments leads to duplication of efforts, wasteful spending, and inconsistent implementation. “There is no unified labour market data system or skills forecasting model. Without real-time insights into the demand and supply dynamics, we’re navigating blindly,” she stated.

She also recommended expanding the footprint of Technical and Vocational Education and Training (TVET) institutions beyond urban centers, with localized curricula and industry linkages.She saw public-private partnerships as a crucial tool to bridge the gap between training and employment, particularly through apprenticeships and enterprise-led training programs.

“Without a coordinated, data-driven, and inclusive approach, the youth bulge could become a destabilizing liability. Demography is not destiny unless we make it so. Strategic planning is the missing link between potential and prosperity,” she added.

Credit: INP-WealthPk