Pakistan's Youth: Its greatest economic advantage or its biggest untapped opportunity?

Zaviaar Arshad

As the 5th most populous country in the world—gaining independence in 1947 under the leadership of Quaid-e-Azam (Muhammad Ali Jinnah), Pakistan holds one of the youngest populations, with over 64% of its citizens under the age of 30. With such a young population, we would expect a thriving economy, but that is far from reality.

Mathematically, Pakistan’s GDP growth was above the world's baseline in the 25/26 fiscal year. At 3.7%, this displays a strong recovery from high inflation rates, political instability, and the negative growth seen in the 22/23 fiscal year (-0.41%). However, Pakistan's huge population means that individual households rarely feel this small economic expansion. At 3.7%, the economy isn’t expanding enough to create millions of new jobs for the 1.5–2 million young people who enter the job market every year. In July 2026, Pakistan's planning minister, Ahsan Iqbal, stated that Pakistan requires a 7% economic growth rate to accommodate its 1.8 million job applicants, highlighting the urgent need for much higher GDP growth. GDP growth does not necessarily translate into a better standard of living, especially in rural areas. When economic growth is too slow, many young people experience unemployment and underemployment, causing the economy to produce far less than it could if labour resources were fully and productively employed. Ultimately, a large, energetic young population like Pakistan's enhances economic potential, but it does not guarantee economic prosperity. As a nuclear-armed country, Pakistan has the workforce to become an economic powerhouse. Its young population is its greatest strength, but only if it is given the necessary ingredients to thrive, such as access to quality, relevant education.

The youth can drive growth. Clear examples of this can be seen through Rwanda's 9.4% GDP growth in 2025, where the median age is just 20.2. How can Pakistan use its young workforce to its advantage, and what obstacles block their potential?

Firstly, Pakistan must improve its education facilities. An estimated 25.1 million children aged 5–16 are out of school. One key reason is that children are often required to work during the day to earn a living for their families. This creates a logical contradiction, as education is what provides a stable financial future long term. However, simply building schools and sending children to learn will have little effect alongside low-quality teaching and crumbling infrastructure. Millions of parents believe that primary and secondary schooling are useless, holding the belief that Sarkari Naukri (government and public sector jobs) are the only paths that bring true financial security. Under immediate financial pressure, many parents choose to pull their kids out of education entirely, leaving them to work in the informal sector. By restructuring teacher incentives and shifting behavioural expectations, the youth of Pakistan can build a much stronger future for their country, especially as the number of skilled workers would inevitably increase. As a result, economic growth is expected through increased productive capacity. But what happens if Pakistan educates its young population yet fails to create enough productive jobs?

Pakistan faces the risk of losing its most valuable human capital as skilled workers increasingly look for better opportunities abroad. According to the Reuters Foundation, over 800,000 young professionals left Pakistan to work elsewhere in 2022. Alongside nationwide flooding that year, a lack of purchasing power and a scarcity of opportunities to improve standards of living incentivized young people to move away, and the numbers show no signs of slowing down, with over 860,000 registering for overseas employment, raising serious concerns for Pakistan's ability to retain its workforce. The Express Tribune described Pakistan as a "brain drain economy." The term "brain drain" refers to when highly skilled human resources migrate from LICs (Low-Income Countries) to HICs (High-Income Countries) in search of higher salaries and a better standard of living. Pakistan currently ranks 6th in the world for the migration of its human capital. When a developing country heavily subsidizes education only for those workers to migrate, it loses vital resources and limits its return on investment—the rich countries get richer, while poor countries get poorer. This phenomenon is driven by several factors, including a lack of local opportunities, poor transport infrastructure, and inadequate facilities to support child development. Brain drain leads to slower economic growth as productivity declines, leaving fewer resources available for reinvestment and growth, which consequently triggers further emigration to more developed countries.

That said, emigration has generated $41.6 billion in remittances in the last fiscal year, with the UK alone accounting for $514.9 million. Personal remittances make up to 9.9% of Pakistan's GDP, boosting household disposable incomes and allowing families to spend more on education, healthcare, and other services—which can trigger a positive multiplier effect. Furthermore, successful migrants occasionally return home with substantial capital, creating new opportunities and investments in their native country.

Various factors shape Pakistan's ability to unlock the true potential of its youth, but access to quality education remains paramount. This involves not only reliable infrastructure and skilled teachers, but instilling the motivation to learn and building a strong foundation in basic skills that enable young people to work toward a brighter future. By improving access to quality education, Pakistan can develop its human capital and skills, equipping young people to contribute to long-term economic growth. A large population alone does not guarantee prosperity; Pakistan’s challenge is not simply a shortage of education, but a failure to convert education into employment. As Pakistan’s population continues to grow, effectively using its human resources and generating viable opportunities for young people is essential. Ultimately, Pakistan’s youth can become its greatest economic advantage—if the country provides them with the education and opportunities required to build a prosperous future.