The British Asian Trust, along with prominent British Asian business leaders and the Punjab Skills Development Fund (PSDF), has signed a landmark agreement at the British Deputy High Commission in Karachi.
This partnership aims to create Pakistan's first Employment Impact Bond, hosted by Martin Dawson, Deputy Head of Mission. Pakistan's economic growth and competitiveness are hindered by a lack of skilled human capital. Annually, over four million Pakistani youths reach working age. Thus, equipping them with modern skills is essential for economic progress.
The Employment Impact Bond aims to secure 40,000 jobs for young people in key sectors, focusing on long-term employment outcomes and unlocking new capital for social impact in Pakistan. Additionally, these bonds are innovative financial tools that use private sector capital and expertise to achieve development goals, prioritizing outcomes and performance through financial incentives.
Simultaneously, international interest in this initiative has earned the British Asian Trust and PSDF design funding from the UK's Foreign, Commonwealth & Development Office (FCDO), Swiss State Secretariat for Economic Affairs (SECO), and UBS Optimus Foundation. Managed by Levoca, the bond's design will incorporate successful global examples and benefit from the British Asian Trust and PSDF’s expertise in finance and skill development.
Kamyla Marvi, British Asian Trust Pakistan Director, expressed excitement over the partnership with PSDF, emphasizing the potential to transform development finance in Pakistan through innovation and efficiency.
Ali Akbar Bosan, COO of PSDF, highlighted that this initiative represents a revolutionary approach to funding skills training. Furthermore, the feasibility study will assess the bond's impact, scalability, and financial viability, setting the stage for future programs. This venture signifies PSDF's commitment to innovative solutions addressing the need for skilled labor.
PSDF has actively provided vocational training for over 13 years, equipping more than 650,000 young people with skills, including 42% women. It collaborates with over 600 training providers to offer diverse programs across Pakistan.
The British Asian Trust is a leader in social finance instruments like impact bonds in South Asia. In addition, it has extensive experience in securing employment outcomes and leveraging innovative financing to support impact investment in Pakistan.