Youth and Entrepreneurship in Pakistan
The fifth-most populous country in the world is also one of the most youthful, as Pakistanis below the age of 29 make up over two-thirds of the country’s 220 million+ population. This enormous youth populous that makes up/will make up Pakistan, however, is struggling to find livelihoods.
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According to the same report, almost 4 million youth reach working age every year, compared to the 1 million jobs added per annum. This statistic pre-dates the pandemic, when the world’s economy was brought to a screeching halt and unemployment rates soared globally. Sustainable employment (and lots of it!) is the need of the hour, and has been for a while.
But how do we produce jobs to accommodate this growing workforce?
The answer: Entrepreneurship.
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Entrepreneurship has been of growing interest, especially within the development sector, as a means of investment, job creation, and economic growth. In Pakistan, the startup ecosystem is currently white hot, as news of Pakistani entrepreneurs securing millions in funding has regularly been making headlines for the past couple of years. In 2020, when the wheels of the economy were slowing down, Pakistani startups received investments of $77 million, whereas eight months into 2021 the investments in Pakistani startups have crossed $228 million. The same figure just five years ago was a meager $8 million.
INGOs in Pakistan have been producing entrepreneurship-related initiatives including UNDP (SheLovesTech, SDG Bootcamps, YouthCo:Lab) UNICEF (GenU, Youth Innovation Challenge), British Council (DICE), USAID (Challenge Fund), GIZ (E4W, FSD), to name a few just over the past couple of years alone.
The current government too, since coming into power in 2018, has shown its support to the entrepreneurial ecosystem in the country. Firstly, the Kamyab Jawan (Successful Youth) and Kamyab Pakistan (Successful Pakistan) initiatives provide low-interest loans to budding entrepreneurs. Secondly, there has been increased support and funding to university incubators and national incubation centers in the country. Finally, the State Bank of Pakistan has relaxed certain regulations to facilitate startups in accessing finance.
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In the face of Pakistan’s consistent inability to attract foreign investment due to security concerns, political instability, FATF grey-listing, or low ease-of-doing-business ranking, homegrown enterprises are the way forward. Create the enabling environment they need, and then the youth of Pakistan can pave their own way!
Author(s) - Jehangir Ashraf
