Are degrees losing value in Pakistan’s job economy?

Pakistan continues to add a rising number of university graduates to its labour market each year, but official indicators suggest the economy is struggling to absorb and upgrade this workforce at a comparable pace. Pakistan graduates nearly 800,000 university students annually, though the supply of skilled professionals remains comparatively limited, according to Nadeem Aslam Chaudhary of the Ministry of Overseas Pakistanis and Human Development. According to the Pakistan Bureau of Statistics’ Labour Force Survey 2024–25, youth participation in the labour market is expanding, yet structural unemployment amongst degree holders. The result is a labour market that is absorbing workers, but not consistently converting academic attainment into skilled, productive employment.

The survey also points to continued underemployment among degree holders, indicating that academic qualification is simply not enough for employment. This structural imbalance suggests that while the economy is expanding its workforce base, it is not upgrading it in line with educational gains, leaving a significant portion of graduates either underutilised or misaligned with their field of study. The disconnect between education and employment begins within the academic pipeline itself. Universities across Pakistan continue to produce large cohorts in generalised disciplines such as business studies, social sciences, and theory-heavy IT programs. While enrolment has expanded significantly under higher education reforms, questions persist over the practical relevance of curricula to modern labour market needs.

The Higher Education Commission (HEC) has repeatedly reported the employability gaps, particularly in relation to industry exposure and applied skill development. Employers, meanwhile, continue to report difficulty in sourcing graduates who are immediately job-ready. This mismatch has led to a growing perception amongst companies that degrees increasingly function as screening tools for entry into the labour market, rather than reliable indicators of capability or employment. A more fragmented reality is emerging within the young graduates itself. Those who can afford migration, through study abroad routes, skilled visa pathways, or remote employment opportunities, are increasingly exiting the domestic labour market. For many, mobility is shaped less by ambition and more by economic capacity and perceived opportunity differentials.

At the same time, a large segment of graduates remains within Pakistan and enters a highly competitive, often saturated job market. Who are more likely to experience delayed entry into stable employment, underemployment, or find employment in completely unrelated fields respective to their degrees. This dual-track outcome has reframed migration less as a uniform brain drain and more as a form of economic stratification, where access to mobility itself is unevenly distributed across income groups.

Within Pakistan’s growing entrepreneurial system, similar problems are also being pointed out. Entrepreneur and Angel investor Muhammad Burhan Mirza has pointed out a growing disconnect between policy direction and employability outcomes, arguing that the graduates entering the workforce require stronger alignment between skill development and market expectations. His view reflects a broader sentiment shared by digital training platforms, private academies, and freelancers, all attempting to bridge gaps left by education platforms. His co-founded company Skills360, focuses on skill development and career through which Mirza argues, is needed to fill the employment gap. In a recent Tedx talk, Mirza mentioned a former student of the institute by the name of Zeeshan Rao, who had studied graphic designing and is now employed at one of the top IT companies in the city.  At the same level, the Skills Development Council Karachi has also been active in formalising vocational and technical training pathways through certified programs aimed at improving workforce readiness across multiple sectors. Alongside this, Iqra University has expanded its offerings in skill-based diplomas and short certification programs, particularly in areas such as IT, business studies, and creative disciplines, reflecting a growing shift within higher education toward market-oriented learning.

In response to these gaps, a parallel skills economy is expanding across Pakistan. Bootcamps, online academies, mentorship networks, and freelancing platforms are increasingly supplementing traditional education pathways. Hiring trends in digital sectors also reflect a shift toward portfolio-based evaluation, particularly in software development, design, and remote services. Despite repeated recognition of employability challenges, reform remains constrained by fiscal and institutional limitations. Public spending on education continues to compete with broader macroeconomic pressures, limiting the scope for large-scale curriculum restructuring or industry integration programs.

Degrees in Pakistan are not becoming irrelevant, but they are losing their exclusivity as the primary signal of employability. While academic qualifications remain an important baseline, they are no longer sufficient on their own to guarantee mobility or economic security. Increasingly, skills, adaptability, and demonstrable experience are emerging as the dominant factors shaping labour market outcomes. The result is a gradual split between credential holders and capability holders, with the latter gaining a growing advantage in an evolving job economy.