In Pakistan, young people holding degrees in their hands are wandering in search of employment. This situation has turned into a crisis for the youth. The initiatives taken at the government level are so limited that there are hardly any opportunities to utilize their educational capabilities. On the other hand, it is also tragic that the education imparted in academic institutions often does not align with the needs of the market. Young graduates may earn degrees, but due to a lack of practical skills, securing a job becomes difficult.
In Pakistan, a large segment of the population aged between 15 and 29 years is unemployed. According to official statistics, hundreds of thousands of young people graduate every year, yet the problem of unemployment remains unresolved. Due to the uncertain economic situation, industries refrain from new hiring, and the growth or establishment of new industries has slowed down. In such conditions, inflation, electricity issues, and lack of investment have pushed educated and skilled individuals into despair.
Skilled individuals are the true asset of any nation, but in Pakistan, the lack of meritocracy and the prevalence of nepotism deprive capable youth of fair opportunities. Consequently, many young people become disheartened and seek to move abroad. In the Government of Pakistan, job opportunities are both limited and increasingly offered on a contract basis for a short duration, creating a sense of insecurity among employees. Many government recruitments are delayed or frozen altogether, while private industries are too small to employ hundreds of thousands of people each year.
Government facilities for small and medium enterprises (SMEs) are insufficient. In the informal sector, youth engage in freelancing, small businesses, or daily-wage jobs, which lack stability and security. Conversely, promoting technical education among Pakistani youth could provide a more sustainable solution. The Government of Pakistan has launched schemes to provide interest-free loans and support startups and entrepreneurship, enabling unemployed youth to start their own businesses according to their skills and stand on their own feet.If every province allocates part of its budget to establish networks of small industries and ensures merit-based recruitment of skilled and executive personnel, not only will employment opportunities increase, but the economy will also strengthen. Additionally, a stronger link between industry and education will be developed, ensuring safe and equal employment opportunities for women.
A comprehensive and integrated policy should be implemented, targeting various sectors of the economy simultaneously. Public works and reconstruction programs, such as building roads, water and sewerage systems, small dams, and other infrastructure, should be initiated to provide 6-to-12-month contracts for youth employment. Non-labor force participants should be offered cash assistance along with skill and job training.
The process of registration and trade licensing should be simplified to make it easier to start micro and small businesses. Interest-free and government-guaranteed loan schemes should be introduced for small enterprises. Training programs and courses should be aligned with market needs and linked with certified institutions and the private sector. Employment facilitation through quick recruitment systems should be promoted, and industries connected to exports should be expanded.
If the government improves access to credit, business incubators, export clusters, and logistics, the SME sector will grow substantially, creating large-scale employment. Special attention should also be given to agriculture and the development of major projects in the energy sector. Labor reforms should ensure workers’ protection. However, without implementing anti-corruption policies, transparent contracting, and efficient use of digital payments and civil society engagement, these measures will not yield lasting results.
