Here’s a bold statement: Pakistan’s economic future hangs in the balance, and the government’s role in job creation is at the heart of the debate. But here’s where it gets controversial—Finance Minister Muhammad Aurangzeb recently declared that providing jobs is not the government’s responsibility, sparking a wave of discussion and concern. This statement comes at a critical time, as Pakistan grapples with capital flight, a deteriorating business environment, and an unemployment rate that has soared to 7.1%, the highest since 2004. And this is the part most people miss—while governments worldwide focus on creating a conducive environment for the private sector, Pakistan seems to be falling short, leaving its youth and economy in a precarious position.
During a seminar on population growth, Aurangzeb emphasized, ‘It is not the government’s job to give jobs. We need to shift our mindset and empower freelancers, IT professionals, and entrepreneurs who are driving the economy forward.’ This perspective, while aiming to foster self-reliance, has raised eyebrows among economists and policymakers. Institute of Business Administration (IBA) Karachi Executive Director Dr. S Akbar Zaidi painted a grim picture, stating, ‘Pakistan is in decline. Its economy is in a sharp downward spiral, and all indicators point to a worsening situation.’ He highlighted Pakistan’s abysmal Human Development Index (HDI) ranking of 168, questioning how the country can aspire to an IT-driven economy with such poor foundational metrics.
The challenges are compounded by Pakistan’s population growth, which adds 3.5 million job seekers to the market annually, turning what could be a demographic dividend into a ‘demographic nightmare,’ as Zaidi aptly termed it. State Bank of Pakistan (SBP) Governor Jameel Ahmad echoed this concern, noting that the current growth model is ill-equipped to support a population of 250 million. Meanwhile, the Special Investment Facilitation Council (SIFC) coordinator admitted to the lack of a coherent growth plan, the predatory behavior of tax authorities toward businesses, and the exodus of local investors to overseas markets.
Here’s the controversial part—while Aurangzeb avoided addressing unemployment directly, he stressed the need to upskill and reskill the youth. But is this enough? Zaidi argues that Pakistan is ‘half a century behind where South Korea was 50 years ago,’ and without immediate, comprehensive reforms, the country risks falling further behind. The finance minister did, however, acknowledge two existential threats: population growth and climate change, which he believes must be addressed to achieve Pakistan’s vision of a $3 trillion economy by 2047.
World Bank Country Director for Pakistan Dr. Bolormaa Amgaabazar pointed out that 60% of Pakistan’s population is under 30, presenting a potential demographic dividend. However, this potential remains untapped without job creation and skill development. Dr. Ali Cheema, Vice Chancellor of LUMS, bluntly stated, ‘If you do not bring population down, you are not gonna get growth up.’ Meanwhile, Dr. Hanid Mukhtar highlighted Pakistan’s lagging GDP per capita growth compared to India and Bangladesh, attributing it to low investment and a poor capital-labor ratio.
Now, here’s a thought-provoking question—Is the government’s hands-off approach to job creation a necessary push toward self-reliance, or is it abandoning its citizens in the face of overwhelming economic challenges? As Pakistan stands at a crossroads, the need for a balanced approach—one that fosters private sector growth while ensuring social safety nets—has never been more urgent. What do you think? Is the government’s stance justified, or does it need to take a more active role in job creation? Let’s discuss in the comments!
