New Delhi, Jan 3 Pakistan is underperforming economically because its education and skills systems fail to convert human potential into productivity, a report said on Saturday.
The report from Pakistan Observer said that low public spending on education, outdated curricula, inadequate teacher training, limited vocational pathways and poor research funding have produced persistent skill shortages and high youth unemployment.
Pakistan’s Human Capital Index of 0.41 indicates a child born today will realise only 41 per cent of their potential productivity even with complete education and good health, the report said.
Pakistan's strategically important location, abundant natural resources and youngest populations in the region have not been translated into sustained economic growth. Instead, weak skills and low productivity continue to constrain national progress, it noted.
Pakistan only spends around 1.9 per cent of GDP on education, well below the internationally recommended 4 to 6 per cent, and about 26.2 million children remain out of school. The report said curricula offer limited exposure to digital skills, critical thinking and applied learning, leaving the workforce ill‑prepared for technological change.
The report cited surveys saying 64 per cent of graduates face employment difficulties due to skill gaps, while graduate unemployment among youth is estimated at around 31 per cent.
Further, research funding is minimal, higher education is disconnected from industry needs, and teacher quality suffers from inadequate training and limited professional development.
“Studies indicate low engagement with continuous learning among teachers, undermining classroom outcomes. Without strengthening the quality of educators, improvements in curricula or funding are unlikely to yield results,” it noted.
Apprenticeship programmes remain limited, leaving many graduates inadequately prepared for employment, and 58 per cent of employers reported difficulty finding appropriate workers, the report added.
“Without decisive action, Pakistan risks turning its demographic advantage into a demographic burden, with millions of young people locked out of productive employment,” the report noted.
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