Pakistan loses an estimated $31.5 billion every year because workers lack the skills needed to improve productivity and increase exports, according to World Bank estimates cited in a new World Economic Forum (WEF) case study. The report highlights the growing gap between education and employment as the country struggles to provide suitable opportunities for its young population.
Only 7% of young people in Pakistan have access to formal technical and vocational training, compared with a regional average of 22%. Limited practical training makes it harder for graduates to meet employers’ needs, particularly as artificial intelligence changes workplace requirements.
Gallup Pakistan’s analysis of the Labour Force Survey 2024-25 found that unemployment among graduates aged 20 to 24 reached 32.8%. The overall graduate unemployment rate was reported at 18.3%, showing that younger graduates face greater difficulty entering the job market.
The WEF case study identifies weak links between educational institutions and employers, along with limited mentorship, career guidance and industry exposure, as key reasons behind the problem. It calls for better training programmes and stronger cooperation between businesses and educational institutions to help young people gain job-ready skills.
Key Statistics
| Indicator | Figure |
|---|---|
| Estimated annual economic loss | $31.5 billion |
| Pakistani youth accessing formal vocational training | 7% |
| Regional average for vocational training access | 22% |
| Unemployment among graduates aged 20 to 24 | 32.8% |
| Overall graduate unemployment rate | 18.3% |
