Pakistan’s Budget 2025 Fails to Deliver for Youth: No Direct Measures for Jobs, Startups, or Skills Training
The federal government’s Finance Bill 2025 has sparked criticism from policy analysts, education experts, and youth advocates for excluding targeted fiscal measures for Pakistan’s youth — despite the fact that individuals under 30 make up over 60% of the national population.
The bill, which outlines the federal fiscal plan for FY2025-26, includes no direct allocation for youth employment schemes, entrepreneurship support, skills development initiatives, or even tax relief for students and freelancers.
“No Tailored Response to Youth Employment Crisis”
“With over two million young people entering the workforce annually, the absence of a youth-centered policy in the Finance Bill is a missed opportunity,”
— Senior Economist Ahmed, commenting on the bill.
At a post-budget press conference, Finance Minister Muhammad Aurangzeb emphasized the importance of the private sector in job creation and noted that freelancers contributed $400 million to the economy in 2024. However, critics argue that acknowledging the youth’s role without providing fiscal support or structural backing falls short.
Higher Education Budget Slashed
Although the bill offers tax exemptions for certain private universities and nonprofits, education analysts note these are legacy measures with limited impact on expanding affordable access or vocational training.
More concerning is the drastic cut in funding for the Higher Education Commission (HEC) under the Public Sector Development Programme (PSDP):
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FY2024-25 allocation: Rs61.1 billion
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FY2025-26 allocation: Rs39.5 billion
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Cut: ~35%
This rollback severely limits public investment in higher education infrastructure, research, and technical skill-building — all of which are essential for developing a future-ready workforce.
Digital Reforms Without Startup Support
While the Finance Bill includes new digital compliance measures such as e-commerce taxation, invoice tracking, and payment monitoring, it does not introduce any supportive measures for:
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Freelancers
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Youth-led startups
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Small digital sellers
“There is increased enforcement but no support. This will only discourage youth-led enterprises instead of promoting formalization,”
— Startup policy consultant.
What Was Missing?
Policy experts highlight several fiscal tools that were notably absent from the Finance Bill 2025:
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Tax holidays or reduced rates for youth-led businesses
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Subsidies for companies hiring young workers
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Startup grants or government-backed incubators
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Simplified registration for freelancers and micro-entrepreneurs
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Direct investment in technical and vocational training institutes
Instead, the government focused on tax enforcement, empowering the FBR to freeze bank accounts and restrict property transfers of non-filers — a move seen as hostile by many young digital entrepreneurs.
Broader Implications for Economic Growth
Observers say this oversight reflects a disconnect between Pakistan’s demographic reality and its fiscal priorities.
“A budget that doesn’t invest in its youth is short-sighted and misaligned with long-term national growth goals,”
— Public policy analyst.
As the Finance Bill 2025 heads into parliamentary debate, calls are growing louder for the inclusion of youth-centered amendments before its passage at the end of June.
