Editorial
Pakistan’s demographic window will close by 2040. Entering 2026, the country faces a clear choice: implement disciplined, results-driven reforms to convert its youth population into economic growth, or delay once again and confront mounting social, economic, and political costs. With around 64 percent of the population under 30 — over 140 million young people — the stakes have never been higher.
Macroeconomic stability must underpin this effort. Inflation has declined from 38 percent in mid-2023 to single digits, yet predictability matters more than temporary gains. Stable interest rates, market-driven exchange rates, and fiscal discipline are essential to encourage investment, raise real wages, and create jobs for millions entering the labour market each year.
Tax reform is equally critical. Pakistan’s tax-to-GDP ratio remains low at 10.3 percent, with regressive indirect taxes disproportionately burdening young workers. Aggressive documentation, digital integration of FBR, NADRA, and land records, and elimination of exemptions could expand the fiscal space for education, skills development, and entrepreneurship.
Energy and education are also urgent priorities. Circular debt and high distribution losses keep electricity expensive, restricting industrial growth and employment. Governance reforms, cost-reflective tariffs, and renewable energy can restore competitiveness. Meanwhile, 22.8 million children remain out of school, and only 38 percent of enrolled students achieve grade-level reading by class five. Structured pedagogy, measurable learning outcomes, and expanded vocational training are imperative.
Finally, jobs will not emerge from slogans alone. SMEs require credit access, simplified regulations, and digital tax systems. Policies to increase female labour participation and co-financed entry-level employment can create millions of opportunities.
Accountability must drive reform. Transparent dashboards, merit-based appointments, and outcome-based performance metrics can ensure delivery. 2026 is a defining year: success will secure growth and opportunity for Pakistan’s youth; failure will compound economic fragility and social instability.
