Pakistan faces a major Pakistan job creation challenge over the next decade, with the country needing up to 30 million new jobs to absorb its growing youth population, World Bank President Ajay Banga said during a visit this week.
Speaking in Karachi, Banga said Pakistan must generate between 2.5 million and 3 million jobs each year to convert its demographic surge into long-term economic growth. Otherwise, he warned, weak employment prospects could fuel instability and rising outward migration.
Pakistan is currently entering the implementation stage of a 10-year Country Partnership Framework agreed with the World Bank last year. At the same time, the government is working with the International Monetary Fund to stabilise the economy. However, pressure remains high to deliver sustained growth and employment.
Banga described job creation as the central goal guiding World Bank engagement in Pakistan. He noted that employment will remain a binding constraint on growth for decades due to population trends. As a result, addressing the Pakistan job creation challenge is no longer optional but essential.
Under the framework, the World Bank Group plans to commit around $4 billion annually in combined public and private financing. Roughly half of this amount is expected to come from private-sector investments led by the International Finance Corporation. According to Banga, this approach reflects limited government spending capacity and the fact that about 90 percent of jobs in Pakistan are created by the private sector.
Pakistan’s employment strategy rests on three main pillars. These include investment in human and physical infrastructure, business-friendly regulatory reforms, and wider access to finance and insurance. Small firms and farmers remain key targets, as many lack formal credit.
Labour-intensive sectors such as infrastructure, primary healthcare, tourism, and small-scale agriculture offer the strongest job potential. Banga said agriculture alone could account for nearly one-third of required jobs by 2050. He also pointed to Pakistan’s growing freelance workforce, which shows strong entrepreneurial capacity but needs better support to scale.
Signs of strain are already visible. Nearly 4,000 doctors left Pakistan in 2025, the highest annual figure on record, according to Gallup Pakistan data. This trend highlights how limited opportunities and working conditions are pushing skilled workers abroad.
Banga identified power sector reform as the most urgent short-term priority. Despite improved generation capacity, losses and inefficiencies in electricity distribution continue to limit growth. He stressed that privatisation and private participation in distribution are vital to restoring financial stability and encouraging investment.
Climate resilience must also be integrated into development planning, Banga said. As one of the world’s most climate-vulnerable countries, Pakistan needs to embed resilience into infrastructure, housing, water, and agriculture to protect jobs and reduce long-term risks.
He said the World Bank views Pakistan as a long-term opportunity focused on employment, not crisis labels, adding that job creation remains the foundation for economic hope.