The China-Pakistan Economic Corridor (CPEC), a landmark infrastructure and economic initiative with an investment of USD 62 billion, offers significant growth potential for Pakistan’s economy. However, the full realization of CPEC’s potential depends on the development of a skilled workforce capable of operating, maintaining, and sustaining the corridor’s infrastructure, industries, and services. This systematic review examines the relationship between CPEC-led industrialization and skill-based education in Pakistan, focusing on the current state of technical and vocational education and training (TVET) in the country. It identifies key gaps in the TVET system and proposes strategies to bridge the education-industry skills gap. The review is based on evidence from studies related to CPEC’s educational components, TVET in Pakistan, the skill needs of the 21st century, and workforce alignment. Key findings include: (1) While CPEC presents a unique opportunity for skills development, the existing TVET system is inadequate to meet the projected demands; (2) There are significant gaps between the skills taught in TVET institutions and those required by industries driven by CPEC, particularly in technical trades, digital literacy, and soft skills; (3) The institutional capacity of TVET institutions is insufficient to meet the future needs, with resources concentrated in developed provinces, leaving peripheral areas underserved; and (4) A successful model requires an integrated approach that aligns policy, industry needs, and education. Based on these findings, the review recommends the development of a national skills strategy that links TVET to CPEC’s economic zones, fosters industry-education partnerships and apprenticeships, revises TVET curricula to include 21st-century competencies, invests in infrastructure and teacher training, promotes regional and social equity, and establishes rigorous monitoring and evaluation systems. The review concludes that aligning skill-based education with CPEC-driven industrial development offers a transformative opportunity to drive industrial growth and provide employment opportunities for youth in Pakistan.