Pakistan, Dec. 30 -- Pakistan launched its first-ever private-capital-funded Pakistan Skills Impact Bond (PSIB) on Tuesday, backed by a Rs1 billion Ministry of Finance guarantee.

The bond will fund a three-year Technical Skills Development Programme and link repayment to measurable outcomes like job placement and six-month trainee retention. Officials described it as a landmark shift from public spending to private-sector-enabled, outcome-driven social investment.

The PSIB pilot represents a fundamental restructuring of skill financing in Pakistan. Future tranches will link returns to trainee salaries, monetizing Pakistan's demographic dividend and enabling sustainable, long-term skill development. The model also aims to export certifie...