World Bank Chief: Pakistan Faces Shortfall of 30 Million Jobs Over Next 10 Years
Karachi, Feb 5: Pakistan faces a pressing need to create between 25 to 30 million jobs over the next ten years to convert its growing youth population into an economic advantage, warned World Bank President Ajay Banga. Speaking in Karachi, Banga stressed that failure to meet this employment demand could trigger domestic instability and a surge in outward migration.
Youth Employment a “Generational Challenge”
Banga highlighted that Pakistan must produce 2.5 to 3 million jobs annually as millions of young people enter the workforce. “Job creation is the North Star,” he said, adding that employment generation will remain a critical constraint on economic growth rather than a secondary policy goal.
CPF Framework and Private Sector Focus
Under the 10 year Country Partnership Framework (CPF) agreed with the World Bank last year, around $4 billion per year is committed in public and private financing, with about half expected from private sector led initiatives. Banga noted that with limited government spending capacity and 90% of jobs coming from the private sector, leveraging private capital is essential.
Three Pronged Job Strategy
The World Bank chief outlined a strategy focused on:
Investment in human and physical infrastructure
Business friendly regulatory reforms
Expanded access to financing and insurance for small firms and farmers
He emphasized that labour intensive sectors such as infrastructure, primary healthcare, tourism, and small-scale agriculture offer significant employment potential, with agriculture alone capable of generating roughly one-third of the required jobs by 2050.
Entrepreneurship and Skilled Workforce Exodus
Banga observed a growing freelance and entrepreneurial culture but noted the need for better capital, infrastructure, and support to scale small businesses into major employers. He also highlighted the high emigration of skilled professionals, citing nearly 4,000 doctors leaving Pakistan in 2025 the highest recorded outflow underscoring weak job prospects and poor working conditions.
Urgent Power Sector Reforms
Addressing Pakistan’s energy sector, Banga said fixing distribution inefficiencies and financial losses is critical. He stressed that private-sector participation and grid reforms are essential to support growth and ensure stability, warning that rooftop solar expansion, without distribution improvements, could destabilize the grid.
Climate-Resilient Development
Banga emphasized embedding climate resilience into mainstream development projects rather than treating it separately, citing Pakistan’s vulnerability to floods, heatwaves, and erratic monsoons. “Build resilience into what you’re already doing,” he said.
Long-Term Vision
Rejecting narratives of fragility or crisis, Banga described Pakistan as a long-term opportunity for job creation. “We’re in the business of hope,” he added.
