Karachi, Pakistan — Pakistan must generate up to 30 million jobs over the next ten years to convert its growing youth population into an economic advantage, or face risks of social instability and outward migration, World Bank President Ajay Banga has warned.
Speaking during a visit to Pakistan, Banga said the country is entering the implementation phase of a 10-year Country Partnership Framework (CPF) agreed with the World Bank last year. Pakistan is simultaneously working with the International Monetary Fund (IMF) to stabilize its economy, but pressure is mounting on Islamabad to deliver sustained growth and employment opportunities.
“Job creation is the North Star,” Banga told Reuters in an interview, emphasizing that employment must be a central priority rather than a secondary policy goal.
A Generational Challenge
Banga highlighted that Pakistan needs to create 2.5 to 3 million jobs annually, totaling 25 to 30 million over the next decade, as millions of young people enter the workforce. Failure to meet this target, he said, could drive illegal migration or domestic unrest.
The CPF framework involves around $4 billion per year in combined public and private financing from the World Bank Group, with approximately half coming from private-sector operations led by the International Finance Corporation (IFC). The approach reflects Pakistan’s reliance on private capital, given government budget constraints and the fact that 90% of jobs are generated in the private sector.
Banga outlined a three-pronged strategy for job creation:
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Investment in human and physical infrastructure
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Business-friendly regulatory reforms
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Expanded access to financing and insurance, particularly for small businesses and farmers
He identified infrastructure, primary healthcare, tourism, and small-scale agriculture as labor-intensive sectors with the highest potential for employment, noting that agriculture alone could account for one-third of the jobs needed by 2050.
Brain Drain Highlights Urgency
Banga pointed to a rising exodus of skilled professionals, citing that nearly 4,000 doctors left Pakistan in 2025, the highest on record, highlighting concerns about limited job opportunities and poor working conditions pushing talent abroad.
Power Sector Reforms Critical
Fixing Pakistan’s power sector is a near-term priority, Banga said, noting that inefficiencies and distribution losses have hindered economic growth despite improvements in generation. Accelerating privatization and private-sector participation in electricity distribution, along with reforms to reduce losses, is essential for boosting economic activity and creating jobs.
He also warned that while rooftop solar adoption reduces household and business energy costs, it could destabilize the grid without proper distribution reforms.
“Electricity is fundamental to everything — health, education, business, and jobs,” he added.
Integrating Climate Resilience
Banga stressed that climate resilience should be embedded into mainstream development, including infrastructure, housing, water management, and agriculture, rather than treated as a separate agenda. Pakistan, one of the world’s most climate-vulnerable nations, faces repeated floods, heatwaves, and erratic monsoons.
“Thinking of climate separately creates a false debate. Resilience should be built into ongoing projects,” he said.
A Long-Term Opportunity
Asked about Pakistan’s role in the World Bank’s global portfolio, Banga emphasized that he sees the country as a long-term opportunity for job creation, not as a fragile or crisis-stricken state.
“We’re in the business of hope,” he concluded.