IN today’s rapidly changing world, the youth of a country represents a dynamic force that can either propel a nation towards progress or hinder its development. With a large segment of the population being young, the opportunities for innovation, creativity and development are vast. Pakistan is at a crucial juncture with a significant youth bulge, this young generation could either become an asset or a liability for the country. The outcome largely depends on the opportunities provided and the environment created for them to thrive. The United Nations Development Programme’s (UNDP) National Human Development survey shows that Pakistan has a large segment of young people with 64% of the total population under the age of 30 and 29% specifically falling within the 15 to 29 age range.
Before questioning the youth, it’s essential to evaluate what the government and institutions in Pakistan have done to nurture young talent. Education is vital for development however inadequate funding for this sector reveals a gap between government priorities and the real needs of education. The 2023/2024 Report ranks Pakistan under ‘low’ human development, with a Human Development Index (HDI) of 0.540, placing it at 164 out of 193 countries. The country suffers from low literacy rates and cultural barriers lead to more boys than girls being educated at all levels. This is troubling as education is key to both individual and national progress, as well as women’s empowerment. The disparity between urban and rural education further limits opportunities for children in neglected areas, where government school conditions are deteriorating. Investing in education can unlock potential, fuel economic growth, and drive social change. While prominent institutions are concentrated in cities, rural areas are left behind. Additionally, Pakistan lacks work placement opportunities, contributing to higher youth unemployment. Remittances are crucial to Pakistan’s economy providing significant financial support. However a major brain drain with skilled individuals leaving for better opportunities abroad could hinder economic development.
Pakistan has immense potential for start-ups, driven by its position as the world’s fifth- largest population. This demographic advantage offers a vast market and opportunities as we have witnessed the rise of successful start-ups. However lack of government support for entrepreneurship and industrialization remains a key challenge. Pakistan benefits from a youth bulge, unlike countries facing demographic decline, such as Italy, Japan and Germany. The shrinking working-age population in these countries leads to labour shortages, higher healthcare costs and a greater dependency ratio, posing serious economic challenges. The United Nations Development Programme’s National Human Development Report (NHDR) highlights Pakistan’s urgent need to create 1.3 million jobs annually. Entrepreneurship can bridge the gap between high demand for employment and a shrinking job market. The government should prioritize supporting entrepreneurship, particularly through intermediaries like IGNITE, which can foster a collaborative ecosystem to nurture start-ups and drive innovation. A report by AlphaBeta suggests that Pakistan’s digital transformation could unlock up to $60 billion in economic value by 2030, presenting a major growth opportunity. To realize this potential, it is crucial to create an environment where individuals can develop the skills needed to succeed in the digital economy and drive long-term economic development. The Federal and Provincial Ministries for youth and economic development share responsibility for youth affairs. Following the 18th Amendment, each province now has its own ministry focused on youth, enabling targeted policies. These ministries must prioritize investing in youth development through effective schemes and frameworks to drive meaningful progress.
To promote entrepreneurship in Pakistan, the government should digitize registration processes and engage with the startup community to develop supportive policies. NAVTTC and TEVTA can play a key role in offering technical and vocational training, especially in rural areas where awareness is low. By organizing workshops and training programs, they can help individuals gain skills and improve employment prospects. Additionally, SMEDA’s one-window operation for youth enterprises should be emphasized to simplify business registration and compliance, reducing bureaucratic barriers that often discourage young entrepreneurs from starting their own businesses. This will help foster a more entrepreneurial environment in the country. In Pakistan, where cultural barriers hinder women’s entrepreneurship, the government can support programmes offering training, funding and mentorship for women-led start-ups. Networking events and workshops should be organized to connect youth enterprises with potential collaborators. Specialized incubation centres for tech start-ups should be established, providing vital resources like mentorship, funding and infrastructure. These centres would foster a supportive ecosystem, helping tech entrepreneurs develop ideas and succeed in a competitive market. By addressing these gaps, the government can empower women and young entrepreneurs driving innovation and economic growth. Bureaucratic delays and inconsistent policies hinder youth entrepreneurship in Pakistan. A cohesive, long-term national policy is needed to foster economic growth, innovation, job creation and sustainable development, enabling a thriving entrepreneurial ecosystem for the country’s youth.
—The writer is contributing columnist.
(rajamuhammadkhan1@gmail.com)
