From Cash Support to Economic Empowerment

Pakistan needs to move beyond traditional approaches to unemployment.

• Providing jobs is important, but creating opportunities for young people to become entrepreneurs, freelancers, and small business owners is equally necessary.

By Nuzair Ahmed Jamro

A Young Person Waiting for an Opportunity

In a small town of Pakistan, a young graduate sits at home with his degree, hoping for a job opportunity. He has completed his education, learned basic digital skills, and dreams of becoming financially independent. However, despite his efforts, he continues to face unemployment because suitable jobs are limited and he does not have enough resources to start something of his own.

Similarly, another young person has learned freelancing skills such as graphic designing, digital marketing, content writing, or software development. He knows that online work can provide income opportunities, but he cannot purchase a laptop, pay for internet services, or invest in professional tools.

These are not isolated stories. Across Pakistan, millions of young people are facing similar challenges. They have talent, energy, and the desire to work, but they often lack one important thing: an opportunity to begin.

Pakistan has a large youth population that can become a powerful force for economic growth. However, if young people remain unemployed for a long time, this demographic advantage can become a challenge instead of an opportunity.

Therefore, Pakistan needs to move beyond traditional approaches to unemployment. Providing jobs is important, but creating opportunities for young people to become entrepreneurs, freelancers, and small business owners is equally necessary.

This is where social protection programs can play a broader role.

The Benazir Income Support Program (BISP), is claimed to be Pakistan’s largest social protection initiative. However, the future of social protection should not only focus on supporting people during difficult times; it should also help them build a better future.

The next question is not only: “How can we support poor families today?”

The more important question is:  “How can we empower young members of these families to become financially independent tomorrow?”

Moving from Assistance towards Empowerment

The Benazir Income Support Program is claimed having played a significant role in reducing poverty by providing financial assistance to vulnerable households, particularly women. However, poverty is a complex challenge. Financial assistance provides immediate relief, but long-term poverty reduction requires sustainable sources of income. A family may receive financial support today, but if its young members remain unemployed, economic difficulties may continue for future generations.

Therefore, a modern social protection system should combine two approaches:

1. Protection during hardship.
2. Opportunities for economic independence.

Many countries around the world have adopted this approach by connecting welfare programs with skills development, entrepreneurship support, and access to small financing. Pakistan can also explore a similar model by creating a youth empowerment window under BISP.

Why Youth Employment Needs Immediate Attention

Youth unemployment is not only an economic issue; it is also a social challenge.

When educated and skilled young people remain without work, they face financial pressure, disappointment, and uncertainty about their future. Families also experience additional burdens because young people who could contribute to household income remain dependent.

On the other hand, when young people receive the right support, they can become job creators instead of job seekers. A young person starting a small business can support not only himself but also his family. A freelancer earning from international clients can bring foreign exchange into Pakistan. A skilled worker establishing a small enterprise can create employment opportunities for others. Therefore, investment in youth is not an expense; it is an investment in the country’s future.

A Proposed BISP Youth Economic Empowerment Initiative

BISP can introduce a dedicated program called: “BISP Youth Economic Empowerment Initiative (BYEEI)”

The purpose of this initiative would be to provide short-term, small-scale financial support to unemployed youth from deserving families so they can start income-generating activities.

The program can support:

• Small businesses.
• Home-based enterprises.
• Freelancing careers.
• Digital services.
• Skilled trades.
• Agriculture-related activities.
• Online entrepreneurship.

The objective should not be simply distributing loans. Instead, the focus should be on creating successful livelihoods. Because a loan without guidance can become a burden, while a loan combined with skills, mentoring, and monitoring can become an opportunity.

Small Loans, Big Opportunities

Many young people do not need millions of rupees to start earning. Sometimes a small amount of financial support can help them take the first step.

For example:

• A young person may need a laptop to begin freelancing.
• A skilled woman may need equipment to start a home-based business.
• A technician may need tools to establish a repair service.
• A farmer may need initial support for modern agricultural activities.

Small loans can help convert skills into income.

The government can provide interest-free or low-cost loans with simple repayment mechanisms. The focus should be on supporting genuine applicants who have skills, ideas, and commitment. However, financial support alone is not enough. The next important step is ensuring that young people receive proper training and guidance.

Combining Skills, Finance, and Mentorship

One of the biggest reasons small businesses fail is not only a lack of money but also a lack of knowledge. Many new entrepreneurs struggle with:

• Business planning.
• Market understanding.
• Financial management.
• Customer dealing.
• Digital marketing.

Therefore, before providing loans, BISP can collaborate with institutions such as technical training authorities, universities, private companies, and experienced entrepreneurs.

A complete support model should include:

Skills + Finance + Mentorship + Market Access

For example, a young person interested in freelancing should not only receive a laptop. He should also receive training on freelancing platforms, communication skills, digital payments, and client management. Similarly, a person starting a small business should receive basic training on budgeting, purchasing, and customer management. This approach will increase the chances of success and reduce the risk of loan failure.

Creating Opportunities through Freelancing and Digital Economy

The digital economy provides new opportunities for Pakistan’s youth.

Today, young people can earn through:

• Software development.
• Graphic designing.
• Content creation.
• Virtual assistance.
• Digital marketing.
• Online teaching.
• E-commerce.

However, many talented youth cannot enter this market because they lack basic resources.

A BISP youth digital support package can include:

• Laptop financing.
• Internet support.
• Digital skills training.
• Freelancing guidance.
• Online payment assistance.

Pakistan has already shown potential in the global freelancing market. With proper support, thousands of young people from rural areas can also become part of this digital economy. The next challenge is ensuring that such opportunities reach youth beyond major cities.

Reaching Rural Youth: The Importance of Inclusion

Most government programs face one common challenge: reaching people in remote areas.

Young people in villages often have fewer opportunities compared to those living in cities. They may have talent, but they lack access to information, training centers, and financial services. Therefore, BISP should use its existing nationwide network to identify and support deserving youth.

Possible measures include:

• District-level youth facilitation centers.
• Mobile training units.
• Online application facilities.
• Local awareness campaigns.
• Partnerships with universities and NGOs.

Technology can help, but local support is equally important. A young person in a village should not lose an opportunity simply because he does not know where to apply.

International Lessons: Learning from Successful Models

Several countries have successfully combined social protection with economic empowerment.

India: Supporting Small Entrepreneurs

India’s small business financing programs have focused on providing credit access to people who previously had limited opportunities to start businesses. The major lesson is that small loans, when combined with proper support, can encourage entrepreneurship among ordinary citizens.

Bangladesh: Microfinance and Self-Employment

Bangladesh demonstrated that access to small financial support can help poor communities establish income-generating activities. The experience shows that people from disadvantaged backgrounds can become economically independent when they receive opportunities.

Philippines: Youth and Skills Development

The Philippines has connected social support programs with skills development and employment opportunities. The lesson is clear: financial assistance becomes more effective when combined with training.

Kenya: Digital Entrepreneurship

Kenya’s digital economy growth shows how technology can create new income opportunities through mobile payments and online services. Pakistan can also benefit by connecting youth financing with digital platforms. These examples show that successful programs do not only provide money; they build confidence, skills, and independence.

Digital Platform for BISP Youth Support

Since BISP already has experience managing digital beneficiary systems, a dedicated youth platform can be developed.

This platform can provide:

• Online registration.
• Skills assessment.
• Loan applications.
• Training information.
• Business monitoring.
• Repayment tracking.

Digital dashboards can help policymakers monitor:

• Number of loans provided.
• Success rate of businesses.
• Employment created.
• Regional performance.

However, digital systems should remain simple because many applicants may have limited digital experience.

Ensuring Transparency and Preventing Misuse

Any youth loan program must have strong transparency mechanisms.

Important safeguards include:

• Clear eligibility criteria.
• Digital application process.
• Business assessment.
• Regular monitoring.
• Transparent selection procedures.
• Feedback mechanisms.

The purpose should be to support deserving youth, not create another system vulnerable to misuse.

Measuring Real Success

The success of a youth empowerment program should not be measured only by the number of loans distributed. The real questions should be:

• How many young people started successful businesses?
• How many jobs were created?
• How many families improved their income?
• How many freelancers entered international markets?
• How many youth became financially independent?

The true success of social protection is not dependency; it is dignity.

Conclusion: Building a Future of Opportunity

Pakistan’s youth are not a problem to be managed; they are an opportunity to be developed.

BISP has already played an important role in supporting vulnerable families. The next stage should focus on transforming beneficiaries from recipients of assistance into participants in economic growth. A small loan, given at the right time, can change the direction of a young person’s life. A laptop provided to a talented freelancer can become a source of lifelong income. A small business supported today can create employment opportunities tomorrow.

As the famous saying goes: “Give a person a fish and you feed them for a day; teach them how to fish and you feed them for a lifetime.”

The future of social protection should not only be about reducing poverty; it should be about creating pathways out of poverty. By introducing a youth entrepreneurship and freelancing support initiative, BISP can move from cash assistance to economic empowerment, from dependency to dignity, and from survival to sustainable opportunity.

The next chapter of BISP should not only protect vulnerable families but it should help build a generation of confident, skilled, and economically independent young Pakistanis.

Read: Green Pakistan through Citizen Incentives

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Hailing from Shikarpur, Sindh, Nuzair Ahmed Jamro is a civil servant and MS research fellow in Public Administration. He writes on governance, public policy, and digital transformation. Email: najamro@gmail.com.