Pakistan’s economic performance is hindered by deficiencies in its education and skills systems, as highlighted in a recent report. The report emphasizes that inadequate conversion of human potential into productivity is a key factor contributing to Pakistan’s underperformance. Factors such as low public spending on education, outdated curricula, insufficient teacher training, limited vocational pathways, and inadequate research funding have led to persistent skill shortages and high youth unemployment in the country.
The report points out that Pakistan’s Human Capital Index stands at 0.41, indicating that a child born today will only achieve 41% of their potential productivity even with complete education and good health. Despite its strategic location, abundant natural resources, and youthful population, Pakistan has not been able to translate these advantages into sustained economic growth. The country continues to face challenges due to weak skills and low productivity, which impede national progress.
Pakistan allocates only about 1.9% of its GDP to education, significantly below the internationally recommended range of 4 to 6%. Additionally, approximately 26.2 million children in Pakistan are out of school. The report highlights that the existing curricula lack exposure to digital skills, critical thinking, and applied learning, leaving the workforce ill-prepared for technological advancements.
Surveys cited in the report reveal that 64% of graduates encounter difficulties in securing employment due to skill gaps, with an estimated 31% youth unemployment rate among graduates. Furthermore, the report notes that research funding is minimal, higher education is not aligned with industry requirements, and teacher quality suffers from inadequate training and limited professional development.
The report underscores the importance of enhancing the quality of educators, as it states that without improvements in teacher quality, curriculum enhancements, or increased funding, significant changes in educational outcomes are unlikely. It also highlights the limited scope of apprenticeship programs, which result in many graduates being ill-equipped for the job market. Employers in Pakistan face challenges in finding suitable workers, with 58% reporting difficulty in this regard.
Without prompt and effective interventions, Pakistan risks squandering its demographic dividend and facing a scenario where a large number of young individuals are unable to secure productive employment, the report warns.
