Experts for integrating micro-credentials into higher education system

ISLAMABAD: Scholar, experts and researchers highlighted the urgent need to integrate micro-credentials into Pakistan’s higher education system to address youth unemployment-related issues.

Professor Pier Paolo of Utrecht University delivering Allama Iqbal Lecture presented a powerful case for structural change in economic development.

Using the TEVECON model, he argued that while improving efficiency within existing sectors provides temporary gains, long-term growth depends on qualitative change through the creation of new sectors and diversified output.

He described this phenomenon as “creative destruction,” where the economy continuously regenerates itself through the emergence of new industries.

Saviotti emphasised the need for a strong institutional framework to enable these transformations and stressed that economic development is a bi-causal process—both driven by and driving structural change.

Discussants Dr Adnan Rafiq and Dr Idrees Khawaja reinforced this perspective, highlighting the importance of innovation, ecosystem development, and public service delivery to sustain growth.

Chairing the session, Dr Safdar Sohail urged policymakers to go beyond efficiency and pursue sectoral reinvention as a strategic imperative.

Nobel Laureate Professor Michael Spence delivering Quaid-e-Azam Lecture, presented “Digital Transformations, AI, Productivity, and the Future of Work: A Conversation for Pakistan.”

He explored the global AI landscape, stating that AI is a transformative force fundamentally altering productivity and labour markets. He differentiated between general AI and Generative AI (GenAI), emphasising the latter’s human-like cognitive capabilities. While routine, middle-income jobs may decline, he stressed that the future lies in human-machine collaboration, not complete automation.

According to Spence, GenAI offers the potential to expand human capacity and deliver digital services to underserved communities, thereby enabling inclusive growth. He underscored the importance of equitable AI access and highlighted its potential in fields such as education, healthcare, and public information.

Dr Khalid Hafeez and Dr Huma Baqai, as discussants, noted the unequal global distribution of AI benefits and stressed the importance of national readiness.

Chairing the session, Dr Eatzaz Ahmed concluded that technological literacy and social learning are now as important as reading and writing in building a modern economy. A critical theme was the broken trust between taxpayers and the state, driven by a lack of transparency, unpredictable policies, and a disproportionate tax burden on the salaried class. Participants also pointed to fiscal fragmentation across provinces and the need for clarity in revenue-sharing mechanisms.

They called for simplified tax codes, a fully integrated digital tax system, modernised labour regulations, and performance-based incentives to rebuild public confidence and support URAAN Pakistan’s trillion-dollar economic vision.

Another technical sessions, several critical themes emerged.

Presentations on Pakistan’s gig economy noted that while the country ranks as the fourth-largest freelancing hub globally, it faces persistent challenges including unreliable internet, limited access to payment systems, job insecurity, and lack of legal protections.

Experts called for updated labour laws, improved digital infrastructure, freelancer-focused training, and inclusive policies to harness the gig economy’s potential.

Another set of papers focused on women’s empowerment through digitalization, emphasizing how platforms provide flexibility and income opportunities, but also face hurdles such as income instability, limited benefits, and digital literacy gaps. Recommendations included targeted training, better infrastructure, and stronger support for female entrepreneurs.

Copyright Business Recorder, 2025