Pakistan loses an estimated $31.5 billion annually in lost productivity and unrealised export potential because of a skills gap among its youth, according to World Bank estimates. Only 7 per cent of young Pakistanis have access to formal technical and vocational training, compared with a regional average of 22pc.
The figures were highlighted as the World Economic Forum’s annual meeting of Global Future Leaders opened in Dubai on Tuesday. One session topic is how to boost youth employment in Pakistan for the age of AI, with the country presented as a case study in bridging the gap between education and employment.
The meeting provides a platform for a new generation of leaders to shape the future and build capacity to respond to setbacks. Nearly a third of Pakistanis aged 15 to 29 are not in education, employment or training (NEET). Among young women, the share exceeds half.
Graduate unemployment stands at 18.3pc nationally, higher than the overall unemployment rate of 14.7pc across all education levels. Gallup Pakistan’s analysis of the Pakistan Labour Force Survey 2024-25 shows that unemployment among graduates aged 20-24 is 32.8pc, meaning nearly one in three is out of work.
The case study attributes the problem to missing infrastructure rather than a lack of talent or effort. Structured mentorship, career guidance, industry networks and reliable labour market signals were never built in most of the country. As a result, a university degree marks the start of a job search rather than the end of one.