World Bank President Ajay Banga has issued a stark warning that Pakistan must create 25-30 million jobs within the next decade to harness its demographic potential and prevent widespread instability. During his visit to Karachi, Banga emphasized that the country’s growing youth population presents both an economic opportunity and a critical challenge requiring immediate action.
The announcement comes as Pakistan implements its 10-year Country Partnership Framework with the World Bank, which commits approximately $4 billion annually in combined public and private financing. Banga revealed that half of this funding is expected to originate from private-sector operations managed by the International Finance Corporation, reflecting Pakistan’s economic reality where 90% of employment is generated outside government channels.
Banga outlined a three-pillar strategy for job creation: substantial investment in human and physical infrastructure, business-friendly regulatory reforms, and expanded access to financing—particularly for small enterprises and farmers who traditionally lack banking support. He identified infrastructure development, primary healthcare, tourism, and small-scale agriculture as the most promising labor-intensive sectors, with farming alone potentially accounting for one-third of required employment by 2050.
The World Bank president highlighted Pakistan’s urgent need to address its power sector deficiencies, noting that distribution inefficiencies and growing debt have constrained economic growth despite improved generation capacity. He stressed that privatization and private-sector participation in electricity distribution would be crucial for restoring financial viability and ensuring reliable power for businesses and households.
Banga also called for integrating climate resilience into mainstream development projects, noting Pakistan’s particular vulnerability to floods, heatwaves, and erratic monsoons. He advocated building climate adaptation measures directly into infrastructure, housing, water management, and agricultural projects rather than treating environmental sustainability as a separate initiative.
The warning comes amid concerning trends of skilled worker emigration, with nearly 4,000 doctors leaving Pakistan in 2025 alone—the highest recorded annual outflow—highlighting the pressing need for improved job prospects and working conditions.