Pakistan-UK Collaboration for First Ever Employment Bond to Give Jobs to 40,000 Individuals - PSDF

May 24, 2024

Pakistan-UK Collaboration for First Ever Employment Bond to Give Jobs to 40,000 Individuals.

The British Asian Trust together with leading British Asian business leaders and the Punjab Skills Development Fund (PSDF) has signed a landmark agreement at the British Deputy High Commission in Karachi.

The signing formalized their partnership to build Pakistan’s first Employment Impact Bond and was hosted by Martin Dawson, Deputy Head of Mission.

The human capital constraint is a critical factor for Pakistan’s slow economic growth and low global competitiveness. With over four million youth becoming working-age in Pakistan each year, equipping them with future-ready skills can serve as a powerful driver for economic advancement in the country.

he Employment Impact Bond is being designed to ensure 40,000 jobs for young people in key growth sectors and drive a focus on long-term employment outcomes while unlocking new capital to fund social impact in Pakistan.

Impact bonds are innovative financing instruments that leverage private sector capital and expertise for development, with a focus on achieving results. They shift the focus from inputs to outcomes, performance, and results through financial incentives.

Global interest in this initiative has already led to the British Asian Trust and PSDF being awarded design funding from the Outcomes Accelerator created by the UK’s Foreign, Commonwealth & Development Office (FCDO), Swiss State Secretariat for Economic Affairs (SECO) and UBS Optimus Foundation and managed by Levoca. The design of the impact bond will draw on successful examples from global contexts and will benefit from the British Asian Trust and PSDF’s shared expertise in innovative finance and skilling.

Kamyla Marvi, British Asian Trust Pakistan Director, said, “This partnership with PSDF marks a significant milestone in our efforts to drive employment for the youth of Pakistan. We are excited to bring international expertise to support the local design of the country’s first impact bond for employment. We genuinely believe that this is an opportunity to transform the approach to development finance in Pakistan leading to greater innovation, efficiency and scale.”

At the signing ceremony, Ali Akbar Bosan, COO PSDF, said, “This pioneering initiative represents a revolutionary approach to funding skills training, set to transform the landscape of skilled workforce development. The feasibility study will evaluate the potential impact, scalability, and financial viability of the Employment Impact Bond, laying the foundations for future programs. This first-of-its-kind venture in Pakistan is our commitment to innovative solutions that address the pressing need for skilled labor, promising a significant shift in how skills training programs are financed and implemented.”

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