Pakistan is looking to bridge the skills gap between Pakistan’s youth workforce and the upcoming demands of its rising technology and automation markets. Structural change is necessary for Pakistan as the growing youth population faces challenges such as a rising unemployment rate and socioeconomic and gender disparities that keep students out of the classroom. In 2020, youth in Pakistan faced an unemployment rate as high as 8.5%; today, approximately 44% of children and teenagers are out of school. With 64% of the population younger than 30, Pakistan has more young people than ever who have the power to revolutionize its workforce by becoming re-skilled in relevant and desirable industries.
Pakistan’s Fourth Industrial Revolution
Pakistan is ushering in its fourth industrial revolution with a big challenge to overcome: enrolling more youth in schools where they can begin working with technology at an early age. This is especially critical as countries are growing increasingly dependent on online learning and employment during the worldwide COVID-19 crisis.
Pakistan’s rising investments in automation, e-commerce, digital payment systems and more requires the youth workforce to keep pace with new technologies. Such growth poses many new opportunities for the nation, including modernizing technology and making tasks such as digital banking and online learning easier.
According to Parwaaz, a reskilling initiative that the World Economic Forum supports, the top 10 skills of 2025 include:
- Technology Use & Monitoring
- Technology Design
- Critical Thinking & Analysis
- Active Learning & Learning Strategies
- Reasoning, Problem Solving & Ideation
- Analytical Thinking & Innovation
- Resilience & Stress Tolerance
- Complex Problem Solving
- Leadership & Social Influence
- Creativity & Originality
These skills can take the Pakistani youth beyond their current capabilities by smoothing their transition into the workforce while giving existing employees opportunities for career advancement.
A Multistakeholder Approach to Success
Pakistan’s largest skills development fund, the Punjab Skills and Development Fund (PSDF), is partnering with the World Economic Forum to join the “Reskilling Revolution.” According to Managing Director Saadia Zahidi, the goal of the revolution is to bring better work, skills and education to over 1 billion people by 2030. Challenges to reskilling include high costs, disconnects between training and relevant skills and few private training opportunities. However, with the launch of Parwaaz, a more structured form of reskilling is underway.
A multi-stakeholder public and private skills training initiative, Parwaaz has pinpointed six sectors that require trained workers in order to accommodate future market demands. These sectors include:
- Financial Services
- Retail and Services
- Manufacturing & Light Engineering
- Agriculture & Livestock
Parwaaz is expecting to change the core skills of 40% of workers in the country, raise the rate of automation from 33% in 2020 to 47% by 2025 and give two out of three employers returns on human capital investment. It plans to achieve this by creating incubators that will train 1,000 young people by June 2021 in market-relevant skills. Parwaaz will continue to function with financial and policy support from the Pakistani government and support from other stakeholders such as educational institutions and industry experts.
Integrating Pakistan’s youth workforce into new, more advanced markets is a nationwide effort that will result in high-performing companies, skilled employees, increased innovation and a stable structure for the future. Ultimately, investments in technology, automation and the growing youth workforce will lead to a brighter future for everyone while helping lift vulnerable populations of poverty.
– Julia Ditmar