This study aims to identify the factors that impact the empowerment of Pakistani youth and their entrepreneurial initiatives in Pakistan. A sample of 350 youngsters from renowned Pakistani universities across the country was selected for this purpose. The questionnaire was administered in person and electronically. Statistical Package of Social Sciences (SPSS) was used for analyzing the data. The findings indicated that all the hypothesized factors (government policies, lack of political participation, employment opportunities, and social engagement) had an impact on youth empowerment and their ability to initiate entrepreneurial activities. This study identified the set of factors that impact empowerment in youngsters, and this model can be extended to other contexts and additional factors can be included. The analytical findings from this study serve to help the government formulate appropriate policies for underserved youth and include them in the policy-making process so that the factors that hinder their empowerment and entrepreneurial initiatives could be addressed.