By Luqman Ahmad Khan
Pakistan, a country with a rapidly growing population, is facing a multitude of economic challenges. With over 64% of its population under the age of 25, the youth of Pakistan are playing a crucial role in shaping the country’s economic future. The economic situation in Pakistan is precarious, with high inflation rates, stagnant economic growth, and a significant trade deficit. In this context, the role of youth in Pakistan’s economy is multifaceted and critical.
Demographic Dividend: A Blessing or a Curse?
Pakistan’s demographic dividend is often touted as a blessing, but it can also be a curse if not harnessed properly. The country’s youth bulge presents an opportunity to tap into the energy and creativity of this demographic segment, which can drive economic growth and development. However, if the youth are not equipped with the necessary skills, education, and opportunities, they may become a burden on the economy.
The Role of Youth in Economic Growth
Youth in Pakistan can play a significant role in driving economic growth by contributing to the workforce, starting their own businesses, and innovating. According to the World Bank, young people are more likely to start their own businesses than older individuals, and they are more adaptable to new technologies and innovations. In Pakistan, entrepreneurship is on the rise, with many young people starting their own businesses in sectors such as technology, e-commerce, and healthcare. Moreover, the youth of Pakistan are also contributing to the workforce by taking up jobs in various sectors. According to the Pakistan Bureau of Statistics (PBS), the labor force participation rate for young people (15-24 years) is around 43%, which is significantly higher than the overall labor force participation rate of 52%. This indicates that young people are actively participating in the labor market and making significant contributions to the economy.
Skills Gap: A Major Challenge
Despite their potential to contribute to economic growth, many young people in Pakistan lack the necessary skills to succeed in the job market. The skills gap is a major challenge facing Pakistan’s youth, with many graduates lacking practical skills and experience. According to a survey by the National Vocational Training Commission (NVTC), only 22% of Pakistani graduates are considered employable. The lack of skills training programs and vocational education is a major reason for this skills gap. Many educational institutions in Pakistan focus on theoretical knowledge rather than practical skills training, which leaves graduates unprepared for the job market. Moreover, there is a shortage of skilled trainers and mentors who can provide guidance and support to young people.
Unemployment: A Major Concern
Unemployment is a major concern for young people in Pakistan. According to the PBS, the unemployment rate for young people (15-24 years) is around 11%, which is significantly higher than the overall unemployment rate of 5%. This high level of unemployment is due to a lack of job opportunities, limited access to education and training programs, and a shortage of skilled workers. The impact of unemployment on young people is far-reaching. It can lead to social unrest, poverty, and decreased economic growth. Moreover, it can also lead to frustration and disillusionment among young people, which can result in brain drain and migration.
Innovation and Entrepreneurship: A Pathway to Economic Growth
Innovation and entrepreneurship are critical pathways to economic growth in Pakistan. The country has seen a surge in startup activity in recent years, with many young people starting their own businesses in sectors such as technology, e-commerce, and healthcare. According to a report by Invest2Innovate (i2i), there were over 10,000 startups in Pakistan as of 2020. However, innovation and entrepreneurship are not without challenges. Many young entrepreneurs face difficulties in accessing funding, mentorship, and markets. The government has introduced various initiatives to support startups, including tax incentives and subsidies for small businesses.
Recommendations for Policy Makers
Policy makers have a crucial role to play in harnessing the potential of Pakistan’s youth for economic growth. Here are some recommendations: 1. Skills Training Programs: Introduce skills training programs that focus on practical skills training rather than theoretical knowledge. 2. Vocational Education: Promote vocational education and training programs that provide students with hands-on experience. 3. Mentorship Programs: Establish mentorship programs that provide guidance and support to young entrepreneurs. 4. Access to Funding: Provide access to funding for startups and small businesses. 5. Job Creation: Create job opportunities through public-private partnerships and infrastructure development projects. 6. Education Reforms: Reform the education system to focus on practical skills training rather than theoretical knowledge.
Conclusion
Pakistan’s youth are playing a critical role in shaping the country’s economic future. However, they face significant challenges such as unemployment, skills gap, and limited access to education and training programs. To harness their potential for economic growth, policy makers must introduce policies that promote innovation and entrepreneurship, provide access to funding and mentorship programs, and create job opportunities through public-private partnerships.
In conclusion, Pakistan’s youth are not just a demographic dividend but also a critical component of the country’s economic growth strategy. By providing them with the necessary skills training programs, vocational education, mentorship programs, access to funding, job creation opportunities, and education reforms, policy makers can unlock their potential for economic growth and development.
