Aligned with the Chief Minister of Punjab, Maryam Nawaz Sharif’s mission, the Punjab Skills Development Fund (PSDF) has launched a program, CM’s Skilled Punjab Program – International Placement, a visionary initiative aimed at opening global doors for Pakistan’s youth. This groundbreaking program will prepare young Pakistanis with the tools they need to excel abroad, strengthening both their futures and Pakistan’s economy.

In 2021, remittances contributed a significant 21% to Pakistan’s GDP, highlighting their vital role in the nation’s economy (Source: Asian Development Bank). Recognizing this, PSDF has identified the Gulf Cooperation Council (GCC) region, particularly Saudi Arabia, as a key market for placing Punjab’s youth. To support this vision, PSDF will provide skill development aligned with the specific demands of the international job market.

The initial phase of this program will provide demand-driven skills training and secure international job placements for 10,000 youth individuals in GCC markets. Moreover, the program will address high global demand for skilled labor in sectors such as healthcare, construction, hospitality, and retail. This 2-year program will encourage remittance inflows and will support the overall economic growth of Pakistan.

During the meeting, Chairperson of the CM Task Force on Skills Development, Adnan Afzal Chattha, stated, “We have carefully identified specific trades in which Punjab’s youth will be trained to enhance their chances for international placement. This program is designed to provide comprehensive training across sectors, significantly improving the likelihood of successful international employment for the trainees. Moreover, this increased interaction will facilitate the exchange of technical expertise and best practices, creating a more efficient flow of information and fostering innovation between countries.”

This program aims not only to provide financial stability for the youth but also to alleviate the economic burden on the country by improving resource allocation. Additionally, by increasing the number of skilled workers employed abroad, Pakistan will benefit from the resulting remittances, which can contribute positively to the economy.

Ahmed Khan, CEO of PSDF, said, “This program can improve Pakistan’s global reputation as a source of highly skilled talent, consequently, attracting further international collaboration and investment.”

Lahore, October 2024 – The Punjab Skills Development Fund (PSDF) has entered a groundbreaking partnership with the UK-based Confederation of Tourism & Hospitality (CTH) to offer internationally recognized certifications to PSDF trainees. In line with Chief Minister of Punjab Maryam Nawaz Sharif’s vision, CM Skilled Punjab Program, PSDF will train 2,500 individuals this year for international placement, potentially leading to significant economic benefits for both the trainees and Pakistan.

This pivotal agreement, signed by PSDF’s Chief Programs Officer, Asim Pasha, and CTH’s Director of Development, Asad Warraich, aims to position PSDF graduates for high-demand employment opportunities in the Gulf Cooperation Council (GCC) region, particularly in the hospitality, tourism, and culinary industries.

Under this contract, PSDF trainees will receive globally accredited qualifications, enhancing their credibility and employability on a global scale. It could result in an annual economic impact of PKR 390 million in remittances (calculated at a conversion rate of 1 SR ≈ 78 PKR), thereby contributing to the country’s financial growth while improving the livelihoods of those placed.

Ahmed Khan, CEO of PSDF, highlighted the transformative nature of the collaboration, saying, “This partnership with CTH is a game-changer. It’s not just about equipping our trainees with skills; it’s about empowering them with globally recognized certifications that open doors to life-changing job opportunities abroad. We are confident that this will lead to a significant increase in international placements for our trainees, providing them with the potential to build sustainable, successful careers.”

With the introduction of global testing and certification standards, PSDF will implement qualifications in demand-driven trades to ensure that graduates are equipped with industry-relevant expertise. The first batch of internationally certified trainees is expected to secure placements by mid-2025, marking a milestone in PSDF’s commitment to bridging the skills gap in Pakistan.

CTH’s Director of Development, Asad Warraich, expressed his excitement for the partnership, stating, “We are delighted to work with PSDF to provide world-class certifications to its talented trainees. This collaboration will not only help these individuals gain international recognition but also elevate their prospects in the global job market. We see this as an opportunity to empower Pakistani youth and ensure they are ready to compete for high-value roles across the GCC.”

The British Asian Trust together with leading British Asian business leaders and the Punjab Skills Development Fund (PSDF) has signed a landmark agreement at the British Deputy High Commission in Karachi.

The signing formalized their partnership to build Pakistan’s first Employment Impact Bond and was hosted by Martin Dawson, Deputy Head of Mission.

The human capital constraint is a critical factor for Pakistan’s slow economic growth and low global competitiveness. With over four million youth becoming working-age in Pakistan each year, equipping them with future-ready skills can serve as a powerful driver for economic advancement in the country.

he Employment Impact Bond is being designed to ensure 40,000 jobs for young people in key growth sectors and drive a focus on long-term employment outcomes while unlocking new capital to fund social impact in Pakistan.

Impact bonds are innovative financing instruments that leverage private sector capital and expertise for development, with a focus on achieving results. They shift the focus from inputs to outcomes, performance, and results through financial incentives.

Global interest in this initiative has already led to the British Asian Trust and PSDF being awarded design funding from the Outcomes Accelerator created by the UK’s Foreign, Commonwealth & Development Office (FCDO), Swiss State Secretariat for Economic Affairs (SECO) and UBS Optimus Foundation and managed by Levoca. The design of the impact bond will draw on successful examples from global contexts and will benefit from the British Asian Trust and PSDF’s shared expertise in innovative finance and skilling.

Kamyla Marvi, British Asian Trust Pakistan Director, said, “This partnership with PSDF marks a significant milestone in our efforts to drive employment for the youth of Pakistan. We are excited to bring international expertise to support the local design of the country’s first impact bond for employment. We genuinely believe that this is an opportunity to transform the approach to development finance in Pakistan leading to greater innovation, efficiency and scale.”

At the signing ceremony, Ali Akbar Bosan, COO PSDF, said, “This pioneering initiative represents a revolutionary approach to funding skills training, set to transform the landscape of skilled workforce development. The feasibility study will evaluate the potential impact, scalability, and financial viability of the Employment Impact Bond, laying the foundations for future programs. This first-of-its-kind venture in Pakistan is our commitment to innovative solutions that address the pressing need for skilled labor, promising a significant shift in how skills training programs are financed and implemented.”

The graduates of the skill development courses offered by the Punjab Skill Development Fund (PSDF) have the capacity to earn more as compared to the others.

According to an in-depth study conducted by the Centre for Research in Economics and Business (CREB) of the Lahore School of Economics revealed that a set of courses offered by the PSDF to youth of the Punjab has resulted in gaining of their monthly income more than Rs 14,000.

The study elaborated that the PSDF initiated a partnership with Coursera, a renowned online learning platform that offers more than 7,000 courses designed by international organizations and universities to the youth of the Punjab in order to bring them at the forefront of the digital revolution.

A certificate from Coursera platform not only opens doors to the youth in Pakistan alone but also around the world, making Pakistani them globally competitive.

According to the official data of Ministry of IT and Telecommunication (MoITT), the year 2022 saw a growth of 2.74 percent as foreign exchange from freelancing stood at $397.328 million as compared to 396.243 million in 2021 in Pakistan. There were around 3 million freelancers in Pakistan in 2022. Pakistan is emerging as a hub for freelancers, and the income potential is limitless.

The study revealed that more than 1200 students completed the internationally recognized Coursera courses from the PSDF platform. Furthermore, to substantiate the impact of this collaboration is witnessed in the income of these graduates.

The transition-to-work is 9 percent points higher amongst trainees who completed the course and were unemployed before the programme and experiencing income gains exceedingly more than Rs 14,000 per month.

This showcases the tremendous potential that these courses offer, with Python, financial accounting, and graphic design courses ranking among the top three contributors to higher income gains.

According to the SBP report, Pakistan sees an annual supply of 20,000 to 25,000 fresh engineering and IT graduates but only 10 percent IT graduates are employable. There is a huge skills gap in the global IT requirements. The courses offered by the PSDF in collaboration with Coursera is helping the youth to unleash these opportunities.