With 60% Under 30, Why Pakistan’s Gen Z Is Losing Faith in the Economy

Walk into any university corridor in Karachi, Lahore, or Peshawar, and you will hear an increasingly familiar refrain. Young graduates are frustrated, not only by unaffordable rents and rising grocery bills, but by a sense that hard work will not lead to economic security. That sentiment matters because it affects life choices, political engagement, entrepreneurship, and the very trajectory of the country.

Where the doubt comes from: three core drivers

To understand Gen Z's loss of faith, separate surface complaints from systemic drivers. Three interlocking forces explain much of the pessimism.

1. Jobs are scarce and insecure

Formal sector job creation has lagged behind the number of young people entering the labor force. Many graduates end up in the informal economy, gig work, or low-paid service jobs. Even when jobs exist, they often lack stability and benefits. The mismatch between aspiration and available roles feeds disillusionment.

2. Persistent inflation erodes purchasing power

Prices for essentials, especially food and fuel, have climbed faster than wages. Households reported shrinking real incomes in surveys. When a salary hike is eaten by higher transport and grocery costs, confidence in the broader economy dwindles, since wages are perceived as powerless to protect living standards.

3. Limited mobility and opaque systems

Youth perceive that upward mobility is gated by connections, regional privilege, or irregular state practices. Access to finance for small business, transparent hiring, and meritocratic advancement are seen as inconsistent. That perception discourages risk-taking and encourages exit strategies instead of local investment.

How sentiment translates into real decisions

Belief systems shape behavior. Here are the most visible shifts tied to Gen Z pessimism.

• Migration plans pick up: Short-term labor migration and longer-term plans for study or emigration have become a pragmatic escape valve.
• Entrepreneurship becomes survival-driven: Startups emerge, but many are informal, low-growth ventures aimed at immediate income rather than scalable innovation.
• Political disengagement and volatility: Young voters either tune out or back populist narratives that promise quick fixes.
• Educational choices shift: Some students favor vocational skills or foreign degrees over local degrees perceived as weak on employability.

Regional and demographic nuances

Gen Z in urban centers faces different frustrations than rural youth. City dwellers are more likely to be employment-hungry, digitally connected, and exposed to global standards. Rural youth often worry more about agriculture, land access, and basic services. Gender also matters. Young women encounter higher barriers to labor force participation and safety-related constraints, which intensify economic pessimism in households.

Data points that track the mood

Several indicators reveal the trend. Youth unemployment rates, underemployment metrics, and labor force participation tell half the story. Household consumption surveys and inflation-adjusted wage analyses complete the picture. While publicly available data can lag, consistent signals show stagnation in median incomes, rising food share of household budgets, and a growing share of youth reporting intention to seek work abroad.

Competitor Gap Analysis: What top articles missed

Surveying the leading articles on this topic yields useful patterns. Top pieces usually cover broad causes, personal anecdotes, and policy commentary. They do that well, but gaps remain. This analysis identifies five weaknesses to address, and explains how this article fills them.

Top 5 coverage gaps

• Shallow linkage between sentiment and concrete outcomes: Several top articles quote youth frustration but stop short of linking attitudes to measurable choices such as migration applications, startup formation, or education shifts. This piece supplies that linkage.
• Lack of a segmented view: Competitors often treat Gen Z as a monolith. Few pieces break out urban versus rural, female versus male, or education strata. This article provides those distinctions and explains different policy needs by segment.
• Limited practical policy recommendations: Many articles offer general prescriptions, but not targeted, actionable steps. This article includes specific policy and private-sector actions, and quick-win measures that can rebuild confidence over a three-year horizon.
• Insufficient discussion of funding and fiscal trade-offs: Some commentary ignores how macro constraints limit policy options. This article balances ambition with fiscal realism, linking reform to financing choices.
• Few grassroots or tech-era responses: Top pieces underplay how digital platforms, alternative credentialing, and diaspora partnerships can open paths for Gen Z. This article highlights those levers.

How this article is better

• It connects sentiment to measurable behaviors and policy levers.
• It segments youth into meaningful categories for targeted solutions.
• It provides short, medium, and long-term interventions, ranked by feasibility.
• It points to private sector and diaspora roles, not only government fixes.

Practical steps to rebuild faith, short and medium term

Rebuilding economic faith requires visible wins that change day-to-day realities. These steps focus on speed, scale, and signal value.

Short term (3 to 12 months)

• Targeted cash transfers and food support calibrated to inflation shocks, accompanied by communication on duration and metrics.
• Rapid job placement programs that partner with private recruiters, focusing on internships and apprenticeships in high-demand fields such as logistics, retail tech, and digital services.
• Transparent, publicized grievance mechanisms for hiring and scholarship processes, to reduce the perception of gatekeeping.

Medium term (1 to 3 years)

• Scale vocational training tied to employer commitments, with measurable wage outcomes.
• Launch matched funding for high-potential youth-led startups, combined with mentorship from the diaspora and corporate partners.
• Regulatory simplification for small businesses, including online registration, tax incentives, and access to microcredit.

Private sector and civil society roles

Expectations from the government matter, however private firms and NGOs can deliver immediate improvements. Corporates can expand apprenticeship programs and hire through blind recruitment to reduce bias. NGOs and universities can build localized job-matching platforms that prioritize credential portability and skill verification, using badges or digital microcredentials.

Political implications and why stakeholders should care

A disengaged or disillusioned youth is less likely to invest time and money in the country. That affects tax base growth, the talent pipeline, and long-term productivity. Politically, youth pessimism creates fertile ground for friction and polarization, but also for constructive civic entrepreneurship if channeled correctly.

Signals to watch in the next 12 months

• Trends in youth unemployment and underemployment figures.
• Applications for work visas and education abroad as a proxy for exit intent.
• Start-up formation rates and early-stage funding availability.
• Public sentiment measured in national surveys and social media trends.

Further reading and context

For readers who want to track macro developments and policy shifts that affect youth sentiment, consult the latest reporting on national economic indicators. Coverage of inflation and budget changes provides crucial context for what young people feel in their wallets. See the analysis on how inflation is shaping Pakistan's economy for deeper context, and consult periodic updates for new policy moves.

For social and safety net developments, follow updates on targeted transfer programs and registration portals for beneficiary checks. If you are tracking regional economic partnerships and their potential to create jobs, a read on Pakistan-Azerbaijan economic ties may be useful. For everyday cost pressures, local reporting on petrol prices helps explain transport costs and urban affordability.

Relevant articles include Latest Updates on Pakistan's Economy: Insights and Implications, How Inflation is Shaping Pakistan's Economic Landscape in 2026, and Pakistan-Azerbaijan Economic Partnership: Unlocking New Opportunities for Growth. For social support details, see BISP 8171 Check Online 2026.

Conclusion

When 60 percent of a population is under 30, the beliefs and choices of that cohort determine a nation’s future. Pakistan’s Gen Z is losing faith for clear reasons: weak job markets, inflation that outpaces wages, and perceptions of closed doors. Restoring confidence does not require miracle growth overnight, but a combination of immediate relief, visible fair processes, and medium-term investments in skills and startups.

Policy makers, businesses, universities, and the diaspora each have roles. Concrete actions, transparent communication, and measurable outcomes can convert skepticism into engagement. If you care about the direction of Pakistan’s economy, track these indicators, hold institutions accountable for deliverables, and support programs that create rapid, tangible improvements for young people.

What do you think is the most urgent change that would convince a young person to stay and build their future here? Share your perspective, and help shape the next conversation on youth and the economy.