Khurram Ijaz says manufacturing-led industrial growth is essential to create jobs, reduce unemployment and support Pakistan’s long-term economic development.
KARACHI, August 4, 2026: Khurram Ijaz, General Secretary of the Businessmen Panel Progressive (BMPP) and former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called on the government to adopt comprehensive industrial policies aimed at accelerating manufacturing growth to absorb Pakistan’s rising unemployed workforce and ensure sustainable economic development.
Commenting on the latest findings of the Economic Survey of Pakistan 2025-26, Khurram Ijaz expressed concern over the increase in the country’s unemployment rate to 7.1 percent during 2024-25, despite significant growth in employment and labour force participation.
He said the latest data highlights a structural challenge facing Pakistan’s economy, where job creation is failing to keep pace with the rapid expansion of the working-age population.
“Pakistan cannot effectively tackle unemployment without expanding its manufacturing base,” Khurram Ijaz said. “The industrial sector has historically been the largest source of productive and sustainable employment. We need policies that encourage investment in manufacturing, facilitate industrial expansion and enable businesses to create millions of quality jobs.”
According to the Economic Survey, Pakistan’s working-age population increased from 159.8 million in 2020-21 to 179.6 million in 2024-25, while the labour force expanded from 71.8 million to 83.1 million during the same period. Although the number of employed persons rose from 67.25 million to 77.2 million, the unemployed labour force also increased from 4.51 million to 5.9 million, pushing the unemployment rate up from 6.3 percent to 7.1 percent.
Khurram Ijaz observed that the economy successfully generated nearly 10 million new jobs over the past four years, but the labour force expanded by more than 11 million, leaving a growing number of people unable to find employment.
“This clearly shows that economic growth alone is not enough. Pakistan requires employment-intensive industrialisation that can generate jobs on a much larger scale,” he added.
He expressed particular concern over the stagnant performance of the manufacturing sector, noting that its share of total employment declined marginally from 14.9 percent to 14.8 percent, despite the country’s increasing workforce.
“The manufacturing sector should have been creating a substantially larger share of new jobs. Instead, its contribution to employment has remained almost stagnant, indicating that industrial growth has not matched the country’s labour market requirements,” he said.
Khurram Ijaz stated that manufacturing offers higher productivity, better wages, technology transfer and stronger export potential than many other sectors. Expanding manufacturing capacity would not only create employment but also strengthen exports, increase tax revenues and reduce dependence on imports.
He urged the government to introduce a comprehensive industrial revival package that includes lower financing costs, competitive energy tariffs, simplified taxation, improved access to industrial land, incentives for technology adoption and stronger support for export-oriented industries.
He also called on the State Bank of Pakistan to maintain a pro-growth monetary policy by reducing borrowing costs, enabling industries to expand production and invest in new capacity.
“The cost of doing business remains one of the biggest obstacles to industrial expansion. Affordable financing, reliable energy supplies and a predictable tax regime are essential if manufacturers are to increase investment and create employment,” he said.
Khurram Ijaz further stressed the need to align vocational education and technical training with industry requirements to equip young people with market-relevant skills.
“Pakistan’s youth represent our greatest economic asset. By developing a skilled workforce and expanding manufacturing, we can transform the country’s demographic growth into an economic advantage rather than allowing unemployment to become a long-term challenge,” he remarked.
He welcomed the increase in the labour force participation rate from 44.9 percent to 46.3 percent, describing it as a positive sign of greater participation by young people and women in the economy. However, he warned that rising participation must be matched by stronger employment generation to prevent further increases in unemployment.
Khurram Ijaz concluded by urging policymakers to prioritise industrial development in future economic planning, stating that sustained manufacturing growth, increased private investment, export expansion and infrastructure development are essential for creating productive employment opportunities and achieving long-term economic prosperity.