ISLAMABAD: World Bank President Ajay Banga has warned that Pakistan must generate up to 30 million jobs over the next decade to harness its growing youth population or face rising risks of economic instability and outward migration.
Speaking during a visit to Pakistan, Banga said the country needs to create between 2.5 million and 3 million jobs annually as millions of young people enter the workforce. Failure to meet this challenge, he cautioned, could lead to increased illegal migration and domestic unrest.
Pakistan is currently entering the implementation phase of a 10-year Country Partnership Framework agreed with the World Bank last year, while also working under an International Monetary Fund programme to stabilise its economy. Despite these efforts, sustained growth and employment creation remain pressing concerns.
Banga emphasized that the World Bank is shifting its focus from funding isolated projects to delivering measurable outcomes, with job creation at the core of its engagement. He described Pakistan’s employment challenge as a long-term, generational issue that will remain a central constraint on economic growth.
Under the CPF, the World Bank Group is expected to commit around $4 billion annually in combined public and private financing, with nearly half driven by private-sector investments through the International Finance Corporation. Banga noted that this approach reflects Pakistan’s limited fiscal space and the fact that the private sector generates about 90 percent of jobs.
He outlined three key pillars for Pakistan’s job strategy: investment in human capital and infrastructure, reforms to create a business-friendly regulatory environment, and improved access to finance and insurance, particularly for small businesses and farmers.
Sectors such as infrastructure development, primary healthcare, tourism, and small-scale agriculture were identified as having the highest employment potential. Banga said agriculture alone could generate nearly one-third of the jobs Pakistan will need by 2050.
He also pointed to the rapid growth of freelancing as a sign of entrepreneurial energy, while stressing the need for better access to capital, infrastructure, and institutional support to help freelancers scale into job-creating enterprises.
The pressure of weak job prospects is already evident, with nearly 4,000 doctors leaving Pakistan in 2025 — the highest annual figure on record — highlighting the growing brain drain driven by limited opportunities and poor working conditions.
Banga described reform of the power sector as the most urgent short-term priority, noting that inefficiencies and losses in electricity distribution continue to hamper growth despite improved generation capacity. He said privatisation and greater private-sector participation in power distribution are essential to restore financial viability and attract investment.
He also warned that the rapid spread of rooftop solar, while lowering energy costs, could strain the grid unless distribution reforms are accelerated.
On climate change, Banga urged Pakistan to integrate climate resilience into mainstream development planning, rather than treating it as a separate issue. He said climate-smart investments in infrastructure, housing, water management, and agriculture could both create jobs and reduce long-term risks.
Concluding his remarks, Banga said he views Pakistan not as a crisis economy but as a long-term opportunity for job creation, adding that the World Bank’s mission is rooted in optimism about the country’s future.
