KARACHI: Pakistan must create up to 30 million jobs over the next decade to benefit from its young population. Otherwise, it may face serious economic and social challenges. This warning came from World Bank President Ajay Banga during his visit to Karachi.
Banga said Pakistan is now entering a key phase under a 10-year Country Partnership Framework. This agreement was signed with the World Bank last year. At the same time, Pakistan is also working with the International Monetary Fund to stabilise its economy.
Speaking to Reuters, Banga explained that the Bank is shifting its focus. Instead of only funding projects, it now aims to achieve real outcomes. According to him, job creation is the top priority.
He said Pakistan needs to generate around 2.5 to 3 million jobs every year. Over ten years, this means nearly 25 to 30 million new jobs. If this target is missed, the country could face rising illegal migration and internal instability.
Banga described this as a long-term challenge. He added that employment will remain a major factor in Pakistan’s growth. It cannot be treated as a secondary issue.
Under the current framework, the World Bank Group plans to provide about $4 billion each year. Around half of this funding is expected from private investors. This reflects the fact that most jobs in Pakistan come from the private sector.
The job strategy focuses on three areas. These include better infrastructure, business-friendly reforms, and easier access to finance. Small businesses and farmers often struggle to get Bank credit, which limits growth.
Sectors like healthcare, tourism, and agriculture offer strong job potential. Farming alone could provide a large share of future employment. Pakistan also has a growing number of freelancers. However, they need better support to expand.
Banga also highlighted the power sector as a major concern. He said electricity losses and poor distribution hurt growth. Despite improved generation, inefficiencies remain a burden.
He stressed that climate resilience must be part of development planning. Pakistan is highly vulnerable to floods and heatwaves. Climate-smart investments can protect jobs and reduce long-term risks.
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Banga concluded by saying the Bank sees Pakistan as a country of opportunity. He said the goal is to support growth through hope and practical solutions.
