Widening skill gap

Pakistan must move beyond incremental fixes, undertake structural reform if it is to bridge the widening skills gap

Pakistan's demographic dividend is fast turning into a demographic dilemma. Every year, the country produces nearly 800,000 university graduates. On paper, this should be a reservoir of talent ready to power domestic growth and penetrate global labour markets. In reality, a widening skills gap is quietly undermining both ambitions — with consequences that extend far beyond the economy.

A recent meeting of the National Assembly's Standing Committee on Overseas Pakistanis and Human Resource Development flagged this troubling scenario. Pakistan is struggling to access key labour markets such as Japan and South Korea due to a mismatch between the skills it produces and those these economies demand. The global job market is evolving rapidly. Countries like Japan and South Korea require certified technical skills, language proficiency and internationally recognised qualifications. Yet, despite our swelling graduate output, many Pakistani degrees fail to translate into employability abroad. Recognition of qualifications remains patchy, and vocational training systems lag behind global standards.

The economic cost is obvious. Pakistan relies heavily on remittances. Limited access to high-value labour markets means fewer opportunities for skilled migration and lower foreign exchange inflows. But the deeper damage is social and political. When educated youth find themselves unemployable at home and uncompetitive abroad, frustration festers. Economic stagnation feeds social unrest and vice versa.

Pakistan must move beyond incremental fixes and undertake structural reform if it is to bridge the widening skills gap. Universities can no longer function in isolation from market realities. Curricula must be revised in consultation with industry, and academic output should be aligned with both domestic and international labour demand. At the same time, far greater emphasis must be placed on technical and vocational training, particularly in sectors sought by these countries.