Skilling young entrepreneurs in a fast-evolving green economy

Pakistan's transition to a green economy is no longer a distant policy conversation. It is becoming an urgent economic necessity.

According to the World Bank, Pakistan ranks among the most vulnerable countries to climate-related disasters. Without timely adaptation, the country could face annual GDP losses of 6–9% by 2050. For a country already struggling with scarce resources, fragile livelihoods and repeated climate shocks, adaptation is the need of the time.

Pakistan's economy remains deeply connected to climate-sensitive sectors. Agriculture accounts for about 25% of GDP and employs nearly 37% of the total workforce, with a large share of women engaged in rural and informal agricultural work. The impacts of climate change are already placing severe pressure on this sector. The 2022 floods caused economic losses equivalent to around 8% of GDP.

Yet within this crisis lies one of Pakistan's largest untapped employment opportunities: climate-smart agriculture. If supported properly, it can create new livelihoods, improve productivity and build resilience for those most exposed to climate shocks. The opportunity is not limited to agriculture. Pakistan's renewable energy transition can also generate employment for young people. According to the World Bank, Pakistan's renewable energy expansion could create 327,000 jobs by 2030. The sector will need technicians, machine operators, drivers and labourers, creating a major opportunity for Pakistan's young workforce.

This is where Pakistan's youth challenge becomes central. Around 37% of Pakistan's population is not employed, educated or in training. Women, along with provinces such as Balochistan and Khyber-Pakhtunkhwa, are disproportionately represented in this category. This shows that the groups most excluded from economic development are also at risk of being excluded from the green economy.

Pakistan needs green skills programmes that are deliberately inclusive, locally accessible and connected to real employment opportunities. There are initiatives like Green Skills Training Program in Sindh's Khairpur and Ghotki districts and Roshni Baji Program that are involved in training young people, mostly women – proving that women can be active participants in technical and green sectors when barriers are intentionally addressed. However, Pakistan cannot build a green economy through scattered pilots alone. It needs a coordinated national approach that links green skills training, women's employment, rural enterprise, clean energy access and climate adaptation.

On the brighter side, Pakistan already has budding green entrepreneurs who are responding to local environmental challenges. Businesses in the northern regions manufacture eco-friendly, reusable and biodegradable bags to combat plastic pollution. Other pioneers are providing on-grid, hybrid and off-grid solar systems to transition to clean energy. In urban areas, startups are introducing electric two-wheelers to lower emissions and improve mobility. Additionally, local agritech innovators offer AI-driven precision farming solutions to optimise farm yields and resource management.

However, green entrepreneurs continue to face serious constraints. Compared to countries that actively subsidise green businesses, Pakistan's support remains limited. India, for example, has expanded subsidies for electric vehicles and renewable energy projects, while also offering concessional loans under green business schemes for projects such as solar energy devices, e-rickshaws and polyhouses. Pakistan will need to create a more enabling environment if it wants its green entrepreneurs to compete regionally.

No one should be left behind in Pakistan's green transition. Rural women, smallholder farmers, young people outside formal education, workers displaced from older industries, and early-stage entrepreneurs must all be part of the country's climate and economic strategy.

Rather than another space of exclusion, the green economy needs to become a pathway to resilience, employment and inclusive growth.