First Rs1b Skills Impact Bond launched

Pakistan on Tuesday launched its first private-capital-funded Pakistan Skills Impact Bond (PSIB), backed by a guarantee from the Ministry of Finance, to operationalise a Rs1 billion pilot tranche under a three-year instrument aimed at financing a scalable technical skills development programme. According to an official statement, the PSIB has been designed to deliver measurable outcomes, including certification, job placement and at least six-month job retention for each trainee. The initiative represents a shift from traditional input-based public spending towards outcome-driven, private-sector-enabled social investment. Under the proposed structure, subsequent tranches of the bond are expected to gradually link repayments to a nominal portion of trainee salaries. The objective is to embed long-term sustainability while monetising Pakistan's demographic dividend both domestically and through the export of certified skills. The launch ceremony also featured the signing of financing documents, including investor and issuer agreements. It was attended by senior government officials, development partners, private sector representatives and international organisations.