Balochistans Skills Gap and CPEC Job Potential: A Human Capital Assessment

Usama Abdul Rauf and Batoora Achakzai
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Usama Abdul Rauf: Pakistan Institute of Development Economics
Batoora Achakzai: Pakistan Institute of Development Economics

No 2026:142, PIDE Knowledge Brief from Pakistan Institute of Development Economics

Abstract: China-Pakistan Economic Corridor (CPEC) has been credited as the biggest infrastructure project in Pakistan, and it has created significant jobs in the country and yet, despite the presence of Gwadar Port and other portions of the Western Route, Balochistan has received only a small share of the economic and employment gains. The current evidence that is available indicates that even though Pakistani workers constitute the majority of the workforce in CPEC projects, local involvement in Balochistan is limited to low-skilled and informal employment while skilled and technical roles are mostly occupied by non-local and foreign workers. The gradual nature of the operationalization of Special Economic Zones additionally constrains local consumption of labor. With the approved SEZs, few of them have gone past the planning stage and industrialization and employment are minimal, especially in Balochistan. The critical limitation is the harsh and multi-sectoral skills shortage in the province, and a lack of skilled workers in mining, construction, port operations, energy, and industrial trades, in addition to poor TVET institutions, low enrollment, low female participation, and industry connections. The skills gap is not limited to CPEC-related industries; it is all-encompassing, in the agricultural sector, the water sector, renewable energy, minerals, and even health, which means that the problem of Balochistan is not project-specific, but structural and indicative of a larger problem in the human capital ecosystem. In conclusion, the study finds that CPEC presents opportunities, but Balochistan is not adequately positioned to take advantage. Devoid of focused, industry-oriented human capital, enhanced TVET, and local-hiring, the province will continue to be a transit region, and not an active recipient of national development, enhancing regional inequalities and restricting the comprehensive influence of CPEC.

Pages: 10
Date: 2026
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