Karachi: Pakistan will need to generate nearly 30 million new jobs over the next decade to harness its rapidly growing youth population and prevent economic instability or mass migration, World Bank President Ajay Banga said during an interview with Reuters.
Speaking during his visit to Karachi, Banga warned that without sustained job creation, Pakistan risks turning its demographic advantage into a serious economic and social challenge. The country is currently entering the implementation phase of a 10-year Country Partnership Framework (CPF) with the World Bank, while also working under an International Monetary Fund (IMF) programme to stabilise its fragile economy.
Despite policy support from global lenders, Pakistan continues to face intense pressure to deliver long-term growth and employment opportunities for millions of young people entering the workforce each year.
“We are shifting the World Bank Group’s focus from simply financing projects to achieving measurable outcomes,” Banga said. “And job creation is the North Star.”
A Generational Employment Challenge
According to Banga, Pakistan must create between 2.5 million and 3 million jobs annually, amounting to 25–30 million jobs over the next decade, as its youth population reaches working age. Failure to meet this demand could lead to rising domestic unrest or increased illegal migration.
“This is not a short-term issue. Employment will remain the key constraint on Pakistan’s growth for decades,” he said, calling it a “generational challenge.”
The World Bank’s CPF commits approximately $4 billion annually in combined public and private financing, with nearly half expected to come from private-sector investments led by the International Finance Corporation (IFC). Banga said the emphasis on private capital reflects Pakistan’s fiscal limitations and the reality that around 90% of jobs in the country are created by the private sector.
Three Pillars of Job Creation
Banga outlined a three-pronged strategy to address Pakistan’s employment crisis:
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Investment in human capital and physical infrastructure
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Business-friendly regulatory reforms
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Expanded access to finance and insurance, particularly for small businesses and farmers who often lack formal credit
Labour-intensive sectors such as infrastructure development, primary healthcare, tourism, and small-scale agriculture offer the greatest potential for job creation. Banga noted that agriculture alone could generate around one-third of the jobs Pakistan needs by 2050.
He also highlighted the growing number of freelancers as evidence of Pakistan’s entrepreneurial spirit, while stressing that access to capital, reliable infrastructure, and institutional support are essential to help small ventures scale into job-creating enterprises.
Talent Drain Signals Deeper Problems
The pressure on Pakistan’s labour market is already visible through rising emigration. Nearly 4,000 doctors left the country in 2025, the highest annual outflow on record, according to data from Gallup Pakistan based on Bureau of Emigration figures. The trend underscores concerns that limited job opportunities and poor working conditions are pushing skilled professionals to seek opportunities abroad.
Fixing Power Sector Is Urgent
Banga identified Pakistan’s power sector as the most critical near-term reform area. Despite improvements in electricity generation, inefficiencies in distribution, mounting debt, and poor bill recovery continue to restrict economic growth.
The sector’s chronic financial losses have strained public finances and deterred private investment, making it a recurring focus of IMF-backed reform efforts. Banga said progress on privatisation and private-sector participation in electricity distribution is essential to restore efficiency and financial sustainability.
He also cautioned that while rooftop solar adoption has reduced energy costs for households and businesses, it could destabilise the power grid if distribution reforms do not keep pace.
“Electricity underpins everything — health, education, business and jobs,” he said.
Climate Resilience Must Be Built In
Addressing climate risks, Banga said Pakistan should integrate climate resilience into mainstream development spending rather than treating it as a separate agenda. One of the world’s most climate-vulnerable countries, Pakistan faces repeated floods, heatwaves and erratic monsoons.
Climate-resilient investments in infrastructure, housing, water management and agriculture, he said, can both support employment and reduce long-term economic risks.
“When you separate climate from housing, food or irrigation, you create a false debate,” Banga said. “Resilience should be built into everything.”
Asked about Pakistan’s place in the World Bank’s global strategy, Banga said he views the country not through the lens of crisis, but as a long-term opportunity for job creation.
“We’re in the business of hope,” he said.
