Empowering Rural Youth for Economic Growth in Pakistan

Policy interventions for rural youth and employment in Pakistan are vital for addressing the socio-economic challenges faced by one of the country’s most vulnerable and underutilized demographics. With 64% of Pakistan’s population under the age of 30 (UNFPA, 2023) and rural residents comprising about 63% of the total population (Pakistan Bureau of Statistics, 2023), harnessing the potential of rural youth is crucial for national development. However, limited access to quality education, inadequate infrastructure, and a lack of job opportunities in rural areas result in high youth unemployment and underemployment. These challenges push many young people to migrate to urban centers, further straining city resources and contributing to social dislocation.

In response, policy interventions by the government, NGOs, and international development agencies are increasingly focused on improving employability and creating sustainable livelihoods in rural areas. Programs such as the Prime Minister’s Kamyab Jawan Program, vocational training through NAVTTC, and digital skills training under the Digital Pakistan initiative aim to equip rural youth with market-relevant skills. Microfinance schemes and youth entrepreneurship grants further support for self-employment and small business development.

Additionally, integrating youth into the digital and green economies through targeted training and startup support in areas like agri-tech, renewable energy, and rural e-commerce can create new pathways for employment. Strengthening local institutions, building rural internet infrastructure, and ensuring gender-inclusive participation are also critical for long-term impact.

The Urgency of Empowering Rural Youth in Pakistan

Rural youth in Pakistan face a multitude of socio-economic barriers that hinder their full participation in the labor market and limit their role in national development. A key issue is the lack of formal employment opportunities only 18% of rural youth hold stable jobs, according to the Labor Force Survey 2022. This challenge is particularly acute for young women, as female labor force participation in rural areas stands at just 22% (World Bank, 2023), reflecting deep-rooted gender disparities. Compounding the problem is a severe mismatch between available skills and market demands. A striking 60% of employers report difficulty in finding skilled workers in rural regions (Pakistan Economic Survey, 2023), indicating a significant gap in vocational and technical education.

This employment crisis drives over 1.5 million rural youth to migrate annually to urban centers in search of work (UNDP, 2023), straining city infrastructure and contributing to social and economic instability. These trends underscore the critical need for targeted policy interventions.

Investing in rural youth is not only a social necessity but an economic opportunity. Reducing youth unemployment in rural areas could significantly lower poverty, which affects 38% of households in agrarian regions (World Bank, 2023). Moreover, fully employing rural youth could inject up to $4 billion into Pakistan’s GDP annually (IMF, 2022). Beyond economics, engaging youth in meaningful employment helps prevent radicalization and social unrest; the UNDP (2023) notes that access to vocational training greatly reduces vulnerability to extremist ideologies.

Given these realities, policy efforts must prioritize education reform, vocational training, gender equity, and digital inclusion tailored to rural contexts. Strengthening rural youth employment is not just about job creation, it’s a strategic imperative for fostering inclusive growth, national stability, and long-term resilience.

Strategic Policy Interventions for Enhancing Rural Youth Employment in Pakistan

Creating sustainable employment for rural youth in Pakistan requires a multidimensional approach that aligns with national priorities, market needs, and youth aspirations. Recognizing that nearly two-thirds of the population is under the age of 30 and a majority live in rural areas, government bodies, NGOs, and international development partners have launched a variety of initiatives aimed at empowering young people economically. One of the foremost strategies has been the promotion of skill development and vocational training to bridge the gap between education and employment. Programs like the Prime Minister’s Youth Skill Development Program (PMYSDP) have trained over 200,000 youth since 2018 in trades ranging from agriculture to IT. Similarly, the Technical and Vocational Education and Training (TVET) reform project, supported by the EU and GIZ, has realigned training with labor market needs, while platforms like DigiSkills.pk are bringing digital freelancing and e-commerce training to rural communities.

Entrepreneurship support is another pillar of youth employment strategy. Initiatives such as the Kamyab Jawan Program have disbursed interest-free loans to over 50,000 young entrepreneurs, enabling rural youth to launch startups in agriculture, retail, and services. Programs like the National Rural Youth Development Program (NRYDP) and the Agri-Tech Startup Challenge promote innovation and self-reliance, particularly for women-led enterprises and agri-based businesses.

Modernizing agriculture is critical to making it attractive to youth. The Prime Minister’s Agriculture Emergency Program provides subsidies and training in efficient irrigation and smart farming techniques, while e-agriculture platforms like Tara.ir and Crop2Cash digitally link farmers to markets. Youth-centric livestock programs further enable rural employment through dairy, poultry, and fisheries training.

Infrastructure and digital connectivity are key enablers of employment. Under CPEC, infrastructure investments including roads and Special Economic Zones (SEZs) have created over 50,000 jobs. The Universal Service Fund (USF) has expanded 4G internet to 80% of rural areas, and off-grid solar energy projects are powering tech hubs that support digital work and learning.

Public-private partnerships (PPPs) have further amplified impact. Companies like Engro and Nestlé Pakistan run training centers and dairy development programs that equip rural youth with job-ready skills while enhancing local productivity. These initiatives not only create employment but also build resilience and inclusive growth in underserved communities.

Finally, ensuring youth participation in policymaking is vital. The National Youth Council (NYC) advises the government on youth-focused strategies, while provinces like Punjab and KP have embedded rural youth employment targets into their development plans. These efforts reflect a growing recognition that meaningful engagement of rural youth is essential for shaping responsive policies.

Conclusion

Empowering rural youth is not just a policy goal, it is a national imperative for achieving inclusive development, economic growth, and long-term stability in Pakistan. With more than half of the population living in rural areas and a majority under the age of 30, youth-centered interventions have the potential to transform Pakistan’s socio-economic landscape. The government, supported by international partners and civil society, has taken important steps by promoting vocational training, supporting rural entrepreneurship, modernizing agriculture, and expanding digital infrastructure.

Yet, persistent challenges such as limited formal employment, gender disparities, and infrastructure gaps underscore the need for more targeted, sustained efforts. Bridging the skills gap, promoting gender inclusion, improving rural-urban connectivity, and ensuring youth voices in policymaking must remain central to the national agenda. If implemented effectively, these policy interventions can reduce poverty, curb youth migration, enhance productivity, and foster innovation in rural areas.

Moreover, they can help prevent social marginalization and build a more cohesive, resilient society. Investing in rural youth today is an investment in Pakistan’s future, one that not only uplifts communities but also strengthens national progress, stability, and global competitiveness in the years to come. The time to act now, with commitment, coordination, and vision.

References: UNFPA; Pakistan Bureau of Statistics; UNDP; World Bank; Ministry of Planning; GIZ; Pakistan Economic Survey; IMF

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

The writer is affiliated with the Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan.

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