Pakistan is experiencing a demographic moment that is both an opportunity and a risk. With nearly 68 per cent of the population under the age of 30, the country has a powerful human resource base.
But while our youth population continues to grow, so does their disillusionment. Despite expanding access to higher education, we are failing to equip young people with the skills they need to enter and thrive in the workforce. The result is an education–employment mismatch that is quietly undermining Pakistan’s growth prospects.
Over the past two decades, the higher education sector has expanded rapidly. Today, more than 240 public and private sector universities are producing over 500,000 graduates annually. Yet this growth in numbers has not translated into better economic outcomes. In fact, unemployment among educated youth reached 31 per cent in 2017–18 and remains worryingly high.
Pakistan’s job market is evolving. Employers in sectors such as IT, logistics, health and renewable energy are actively seeking candidates with digital skills, problem-solving ability, and adaptability. Yet these are precisely the skills our current education system fails to provide. According to firms in the tech industry, which reported over $2.8 billion in exports in FY 2024-25, the shortage of skilled professionals is now a major constraint to growth. This is a costly indicator of how underutilised human capital is dragging down our economic potential. Several core gaps continue to drive this mismatch
One major issue is the growing disconnect between curriculum and competence. Our education system still relies heavily on rote learning.
Alongside this, the quantity–quality divide persists. While we have expanded enrolment in higher education, quality assurance has not kept pace. Many institutions continue to produce degrees in disciplines with limited market demand.
The lack of coordination between academia and industry further compounds the problem. Universities rarely consult employers when designing curricula. As a result, graduates often lack the skills, exposure and mindset needed for employment.
Equity remains another persistent equity gap. Girls, rural youth and students from low-income households continue to face barriers to accessing quality education and the digital tools required to succeed.
This is not a challenge we can afford to ignore. The economic consequences are significant. Many graduates remain unemployed, while others are forced into low-paid or informal jobs that do not match their qualifications. This contributes to underemployment, weak productivity and growing frustration among the youth – who had expected education to be a pathway to opportunity.
To address this, we need a strategic reset. Education in Pakistan must be repositioned not just as a social good, but as the foundation of economic resilience. First, schools and universities must embed 21st-century skills across all levels of education. Digital literacy, communication, collaboration and entrepreneurial thinking are no longer optional.
Second, technical and vocational education and training (TVET) must be mainstreamed and destigmatised. Skills development centres, mobile training units and apprenticeship programmes can help reach youth in underserved areas and prepare them for high-demand sectors.
Third, universities should build structured partnerships with industry. This includes co-developing curricula, offering real internships and establishing career placement services. Our graduates need more than degrees; they need market-ready experience.
Fourth, teacher development must be at the centre of any reform. Quality learning depends on quality teaching. We need to invest in modern pedagogical training and ensure teachers have the tools and support to deliver relevant instruction.
Fifth, we must address digital inequality. Expanding access to internet connectivity, affordable devices, and localised e-learning platforms—especially for girls and in rural districts—must be treated as a development priority.
The potential gains are significant. According to the World Bank, if Pakistan invests effectively in human capital – education, skills and non-farm employment – GDP per capita could increase by over 140 per cent. But the cost of continued neglect is equally high: more inequality, more economic strain and a generation of frustrated, unemployed youth. Countries like South Korea demonstrate what’s possible: through sustained investment in education, skills training and strong alignment between academia and industry, it transformed from an agrarian economy in the 1960s into a global innovation and manufacturing powerhouse.
Pakistan has no shortage of policy documents. What we need is effective execution through clear accountability, cross-sector coordination and implementation mechanisms at both the federal and provincial levels. Provinces must be empowered to localise and lead reforms. The private sector must be incentivised to engage in skills development. Civil society can help create demand for quality education and greater accountability.
Most importantly, we must challenge the outdated belief that a degree alone guarantees success. The world has moved on and we must move with it. The true test of our education system is not how many diplomas it awards, but how many young people it enables to earn a dignified livelihood.
Our youth are ambitious, capable and ready. But they need a system that prepares them for the world as it is – not as it once was.
The writer is a senior research demographer at the Pakistan Institute of Development Economics (PIDE). She can be reached at: saimapide.org.pk