Pakistan must generate millions of new jobs over the next decade to turn its large youth population into an economic advantage, or face rising instability and outward migration, World Bank President Ajay Banga has said.
Speaking during a visit to Karachi this week, Banga said the country needs to create around 2.5 million to 3 million jobs every year, which could total 25 to 30 million over 10 years. Without sustained job growth, he warned, the pressure of a young population could lead to social strain and more people leaving the country in search of work.
Pakistan is entering the implementation phase of a 10-year Country Partnership Framework agreed with the World Bank last year, while also continuing efforts with the International Monetary Fund to stabilise the economy. Despite these programmes, the country still faces strong pressure to ensure long-term growth and employment.
Banga described job creation as a “generational challenge”, saying Pakistan’s population trends mean employment will remain central to economic progress for many years. The World Bank’s framework is expected to bring about $4 billion in annual financing from public and private sources, with a significant share coming from private-sector investment.
He said most jobs in Pakistan are created by the private sector, making business-friendly reforms, better access to finance, and investment in infrastructure and human development essential. Labour-intensive sectors such as infrastructure, tourism, primary healthcare and small-scale farming hold strong potential for employment, with agriculture alone expected to provide a large share of future jobs.
The rise of freelancers also shows growing interest in entrepreneurship, but better access to capital and infrastructure is needed to help small ventures grow into larger job creators.
The pressure of limited opportunities is already visible. Nearly 4,000 doctors left Pakistan in 2025, the highest annual number on record, according to Gallup Pakistan, highlighting concerns over weak job prospects and working conditions.
Power sector remains key
Banga said fixing the power sector is the most urgent short-term priority. Losses, weak bill recovery and rising debt in electricity distribution continue to hold back growth and discourage investment. He said stronger private-sector participation and reforms in distribution are necessary to improve efficiency and financial stability.
While the rapid spread of rooftop solar is helping reduce energy costs, he warned it could create pressure on the national grid if reforms are delayed. Reliable electricity, he said, is vital for health, education, businesses and job creation.
Climate resilience part of development
Banga also called for climate resilience to be built into core development planning rather than treated separately. Pakistan remains highly vulnerable to floods, heatwaves and changing weather patterns, making climate-ready investment in housing, water management, infrastructure and agriculture critical for long-term stability and employment.
He said Pakistan should be viewed as a long-term opportunity for job creation rather than through the lens of crisis, adding that development efforts must focus on delivering real outcomes for people.
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