World Bank President Ajay Banga has highlighted Pakistan’s pressing need to create millions of jobs to harness its youthful population effectively. Speaking to Reuters in Karachi during his recent visit, Banga underscored that turning the youth bulge into an economic dividend requires immediate and sustained action on employment.
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Scale of the Employment Crisis
According to Banga, Pakistan must produce 2.5 to 3 million jobs every year for the next ten years, totaling up to 30 million positions. This target addresses the influx of young workers and prevents risks like outward migration and domestic unrest. He called it a “binding constraint” on long-term growth, not just a side issue.
Strategic Shift to Outcomes
Banga explained that the World Bank is reorienting its work toward outcomes, with job creation at the center. Pakistan’s private sector drives most employment, so policies must encourage private investment. The 10-year Country Partnership Framework provides about $4 billion yearly in financing, blending public support with private-sector initiatives.
Pathways to Job Growth
A three-pronged approach was proposed: investing in infrastructure and human capital, easing regulations for businesses, and improving financial access for underserved groups like small enterprises and farmers.
Key sectors include agriculture, tourism, healthcare, and infrastructure. Banga noted the rise of freelancers as a sign of entrepreneurial spirit, but they need better support to scale and create more jobs.
He also touched on related challenges, such as power sector reforms to boost productivity and integrating climate resilience into everyday development. Banga expressed optimism, viewing Pakistan as a long-term opportunity for hope and progress through focused reforms.