Pakistan Needs 30m Jobs by 2035, Says World Bank Chief

KARACHI / ISLAMABAD — In a direct address to Pakistan’s economic future, World Bank President Ajay Banga warned that the country must generate 2.5 to 3 million jobs annually—totaling roughly 30 million over the next decade—to prevent a burgeoning youth population from becoming a source of domestic instability or driving mass illegal migration.

Speaking in Karachi during his first official visit to Pakistan (Jan 31 – Feb 4, 2026), Banga identified job creation as the “North Star” of the World Bank’s new 10-year strategy for the country.

The $40 Billion “North Star” Strategy

Pakistan has officially entered the implementation phase of the Country Partnership Framework (FY2026–2035), a massive 10-year commitment designed to move the Bank from “funding projects” to “delivering outcomes.”

• The Funding: The CPF commits approximately $4 billion per year ($40 billion over the decade).
• The Split: Roughly half of this funding ($20 billion) will be driven by the International Finance Corporation (IFC) to spark private-sector growth, acknowledging that the cash-strapped government can no longer be the primary employer.
• Three Pillars of Employment:
  1. Infrastructure: Investment in both human (health/education) and physical (transport/energy) capital.
  2. Regulatory Reform: Creating a “business-friendly” environment to stop capital flight.
  3. Financial Access: Expanding credit and insurance to small-scale farmers and entrepreneurs who currently lack bank support.

The “Power First” Priority

Banga emphasized that no job strategy can succeed without fixing Pakistan’s crippled power sector.

• The Bottleneck: While generation has improved, inefficiencies in distribution and massive debt (circular debt) act as a “binding constraint” on growth.
• The Solution: Banga pushed for greater private-sector participation in electricity distribution to reduce losses and improve bill recovery.
• Solar Warning: He noted that while rapid rooftop solar adoption helps individuals, it could destabilize the national grid if distribution reforms are not accelerated.

A Record “Brain Drain” in 2025

The urgency of Banga’s message is underscored by new data from Gallup Pakistan, revealing a historic exodus of skilled professionals.

• Doctor Exodus: In 2025, nearly 4,000 doctors emigrated from Pakistan—the highest annual outflow ever recorded.
• Economic Loss: This represents a massive loss of public investment, as medical education in Pakistan is heavily subsidized by the state only for the talent to be “exported” due to poor local working conditions.

“The Business of Hope”

Despite the challenges, Banga rejected labels of “crisis” or “fragility,” stating he views Pakistan as a long-term opportunity for job-rich growth. He urged the government to integrate climate resilience into all infrastructure projects, rather than treating it as a separate agenda, to protect jobs from the recurring threats of floods and heatwaves.

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