To frame the issue, two characteristics of Pakistan should be noted. First, Pakistan has a very large market of 160 million people. For decades, this fact has been ignored in policy because of the focus on production and exports.1 Second, a large and growing population has now produced a huge youth bulge in the population which will work itself out for much of this century: 50 percent of the population is “under 20”.2 Progress of the spread of education has been slow, leaving this bulge largely unskilled, and hence with limited employment possibilities.