Pakistan Must Create 30 Million Jobs in a Decade to Avoid Instability: World Bank

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Karachi: Pakistan must create up to 30 million jobs over the next decade to turn its growing youth population into an economic advantage and prevent instability and outward migration, World Bank President Ajay Banga said.

Banga said Pakistan needs to generate 2.5 to 3 million jobs annually as millions of young people enter the workforce. “This is a generational challenge,” he said, warning that failure to deliver jobs could fuel “illegal migration or domestic instability”.

Pakistan is entering the implementation phase of a 10-year Country Partnership Framework (CPF) with the World Bank, committing about $4 billion a year in combined public and private financing. Roughly half of the funding is expected to come from private-sector operations led by the International Finance Corporation.

Banga said job creation must remain the central policy objective, noting that 90 percent of employment in Pakistan is generated by the private sector, while the government has limited fiscal space.

He outlined three pillars for Pakistan’s job strategy: investment in infrastructure and human capital, business-friendly regulatory reforms, and expanded access to financing and insurance for small businesses and farmers.

Labour-intensive sectors such as infrastructure, primary healthcare, tourism and agriculture hold the greatest employment potential, he said, adding that farming alone could account for nearly one-third of the jobs needed by 2050.

Banga also flagged Pakistan’s power sector as the most urgent near-term challenge, citing losses and inefficiencies in electricity distribution that have constrained growth. Progress on privatisation and private-sector participation, he said, is critical to restoring financial viability.

Climate resilience, he added, must be integrated into mainstream development spending, particularly in infrastructure, water management and agriculture, as Pakistan remains highly vulnerable to floods and heatwaves.

“We’re in the business of hope,” Banga said, describing Pakistan as a long-term opportunity for job creation rather than a crisis economy.