global talent crunch is looming. By 2030, more than 85 million vacancies worldwide could be unfilled due to a lack of skilled workers, a Korn Ferry report warns. For a young population like Pakistan’s, where 64 percent of the population is under 30, this is both a warning and a wake-up call. The country’s demographic dividend is a potential game-changer, but only if our youth are equipped with the right skills for the evolving job market.
Pakistan faces a widening gap between the skills our workforce possesses and those demanded by the 21st-Century economy. Traditional education systems and training programmes have not kept pace with rapid technological change, leaving millions unemployed or under-employed. This is especially evident in high-growth sectors like information technology, healthcare and renewable energy, where employers report difficulty finding qualified workers.
The emergence of artificial intelligence (AI) offers a unique opportunity—not as a threat, but as a transformative force that can upskill the workforce and create new employment avenues. For Pakistan, the real potential of AI lies in strengthening skill education, introducing AI-related skills into vocational training and preparing the youth for a digital-first future.
From skills gap to opportunity
Pakistan’s skills gap is particularly stark in the technology sector. Despite the IT industry contributing over $2.6 billion in exports annually, there is a chronic shortage of skilled developers, AI specialists and data scientists. Meanwhile, youth unemployment stands at 11.1 percent. Many university graduates lack the technical or job-ready skills required by employers.
This is where skill-focused education—particularly in AI and emerging technologies—can make a difference. Unlike traditional academic degrees, skill education can rapidly adapt to market demands. By incorporating AI-related skills such as machine learning, data analytics, cloud computing and automation into technical and vocational education and training (TVET), Pakistan can empower its youth to seize new economic opportunities.
AI-driven skill Education
AI can enhance the delivery of skill education. Platforms like Sabaq.pk and Taleemabad are already integrating AI to personalise learning for students, adjusting content to match individual learning needs and progress. This adaptive learning approach increases engagement and ensures learners master foundational skills before progressing.
DigiSkills.pk, a government-backed platform, has trained over 3 million individuals in digital freelancing and AI-related courses. With global freelancing markets booming, valued at $1.5 trillion globally in 2023—this equips Pakistanis to earn online, especially in areas like AI training data labelling, social media automation and chatbot development.
Indian model
India’s digital economy offers a model for Pakistan. India invested early in IT education and skills development through initiatives like NASSCOM’s FutureSkills Prime, which aims to skill over 4 million individuals in AI, cloud and cybersecurity. As a result, India now exports over $200 billion in IT services annually and is home to more than 80,000 start-ups, including many in AI.
AI is not just a tool; it is a catalyst for transformation. With the right investments in AI-driven skill education and employment pathways, Pakistan can turn its demographic challenge into a demographic dividend.
Pakistan can emulate this trajectory by aligning its TVET sector with AI and digital economy needs. Integrating micro-credentials, certification programmes and partnerships with global tech companies—like Google, Microsoft and Coursera—can create a steady pipeline of AI-ready professionals.
AI as an employment enabler
Much of the global narrative around AI focuses on job losses. While some roles will be automated, new job categories are emerging. These include AI trainers, prompt engineers, ethical AI auditors and automation supervisors, to name a few. The World Economic Forum estimates that AI will displace 85 million jobs by 2025 and create 97 million new ones, most requiring reskilling or upskilling.
In Pakistan, organisations like Telenor and Jazz are already upskilling employees in AI-related tools like data analytics, digital marketing automation and chatbot operations. The Punjab Skills Development Fund is also exploring AI-based assessments to better match learners with relevant training, enabling quicker transitions into high-demand roles such as solar technicians and e-commerce managers.
By integrating AI-related modules such as data analytics, robotic process automation (RPA), cloud computing and prompt engineering into vocational training, the PSDF is ensuring that its programmes remain relevant to the future job market. The PSDF deploys AI-powered learning management systems (LMS) that personalise content, tracks learner progress and recommend adaptive learning paths, especially for remote and underserved communities.
Youth and economic mobility
For Pakistan’s youth, AI represents a ticket to upward mobility, especially in underserved and rural areas. With internet penetration now at over 39 percent, and growing mobile broadband access, more young people can tap into digital learning and remote work. AI-powered platforms reduce barriers to entry by offering personalised paths to learning, low-cost certifications and gig economy access.
AI is enabling fairer hiring practices. Platforms like Rozee.pk and Mustakbil are using AI to match candidates with jobs based on skills, not just degrees, reducing bias and leveling the playing field. Pakistani startups like TalentHue use AI to assess soft skills and cultural fit, helping youth land jobs that suit their strengths.
Building an AI-skilled workforce
To fully harness AI’s potential, Pakistan must:
Integrate AI and emerging technologies into TVET curricula nationwide.
Partner with global platforms to offer scalable, industry-aligned certifications.
Invest in digital infrastructure to bridge the connectivity gap, especially in rural areas.
Ensure ethical and inclusive AI deployment to avoid bias and protect privacy.
Empower institutions like the PSDF to scale AI-driven training and employment services.
AI is not just a tool; it is a catalyst for transformation. With the right investments in AI-driven skill education and employment pathways, Pakistan can turn its demographic challenge into a demographic dividend. The future of work is digital. With strategic planning, the Pakistani youth can not only compete globally but lead the way.
The writer is the CEO of the Punjab Skills Development Fund.