Ayesha Saba

The concurrent challenges of business downturns and rising unemployment pose a significant threat to Pakistan's economic stability and social fabric. In an interview with WealthPK, Advisor Islamabad Chamber of Commerce and Industry (ICCI) Majid Shabbir said Pakistan had witnessed a decline in recent years in the presence of multinational companies and other business activities, leading to a scarcity of lucrative job opportunities. Moreover, even when the jobs are available, the salaries remain dismally low, exacerbating economic strain on individuals and families. He said one major factor contributing to unemployment in Pakistan was the mushroom growth of universities, leading to a surplus of graduates entering the job market each year. This imbalance between the supply of graduates and the demand for jobs in the market exacerbates the unemployment crisis. "In the absence of market need analysis conducted by the universities, the question is what educational strategies are being pursued to address the demand-supply gap in the job market and alleviate the pervasive issue of unemployment.

This fundamental inquiry underscores the need for a more formalized approach to curriculum development and educational planning. Consequently, graduates lack the requisite skills and competencies employers demand, exacerbating the unemployment rate," he maintained. In light of these challenges, he stressed the urgent need for a comprehensive government action to address the unemployment crisis and support the struggling businesses. The government should implement the youth programs tailored towards entrepreneurship and innovation, facilitating platforms for individuals to effectively apply their knowledge and skill sets. Concluding, he said it was imperative to provide strategic guidance for the establishment and development of IT cities to promote technological progress and economic advancement. Furthermore, prioritizing the expansion and enhancement of business skills institutes is essential to broaden the opportunities for skill development among the population.

Talking to WealthPK, a planning ministry official said according to the Public Sector Development Programme (PSDP) for 2023-24, the planning ministry had allocated Rs3,200 million for funding youth development programs and projects, out of which Rs2,842.44 million had been utilized. "These programs and projects are aimed at producing a competent, skilled workforce on a par with the international standards of the job market in various sectors of the economy, including construction, hospitality, services and energy sector, and other emerging sectors like IT, blockchains, Amazon and high-tech/high-end trades, etc.," he said. "We have launched the Pakistan Innovation Fund, which aims to support and promote innovation-driven entrepreneurship in the country. Under the PSDP 2022-23, Rs10 billion has been allocated for Pakistan Innovation Funds." According to the ILO estimates, Pakistan's employment-to-population ratio has fallen well below its pre-crisis trendline at 47.6 percent, while the number of unemployed persons is expected to reach 5.6 million — a surge of 1.5 million since 2021.

INP: Credit: INP-WealthPk