Business
Pakistan must create 30m jobs over next decade: World Bank president
Pakistan must create up to 30 million jobs over the next decade to turn its youth bulge into an economic dividend or risk instability and outward migration, World Bank President Ajay Banga has stressed.
Pakistan is entering the implementation phase of a 10-year Country Partnership Framework (CPF) deal agreed with the World Bank last year, while also working with the International Monetary Fund to stabilise its economy. But Islamabad is still facing mounting pressure to deliver sustained growth and jobs.
“We’re trying to move the bank group as a whole from the idea of projects to the idea of outcomes,” Banga said in an interview with Reuters in Karachi during a visit to Pakistan this week.
“Job creation is the North Star.”
‘Generational challenge’
Pakistan needs to generate 2.5m to 3m jobs a year — roughly 25m to 30m over the next decade — as millions of young people come of age, Banga said. Failure to do so could fuel “illegal migration or domestic instability”.
Banga said Pakistan’s population dynamics mean employment creation will remain a binding constraint on growth over the long term, rather than a secondary policy goal.
“This is a generational challenge,” he said.
The CPF commits around $4 billion a year in combined public and private financing from the World Bank Group, with roughly half expected to come from private-sector operations led by the International Finance Corporation.
Banga said the reliance on private capital reflects a country where the government has limited spending capacity and 90 per cent of jobs are created in the private sector.
Banga said Pakistan’s job strategy rests on three pillars: investment in human and physical infrastructure, business-friendly regulatory reforms, and expanded access to financing and insurance, particularly for small firms and farmers that typically lack bank credit.
Infrastructure, primary healthcare, tourism and small-scale agriculture were labour-intensive sectors with the greatest employment potential, he said, adding that farming alone could account for about one-third of the jobs Pakistan needs to create by 2050.
A growing pool of freelancers also highlighted Pakistan’s appetite for entrepreneurship, but they need better access to capital, infrastructure and support to scale into job-creating businesses, he said.
The strain is readily visible in the exodus of skilled workers.
Nearly 4,000 doctors emigrated from Pakistan in 2025, the highest annual outflow on record, according to Gallup Pakistan data based on Bureau of Emigration figures, underscoring concerns that weak job prospects and poor working conditions are pushing trained professionals abroad.
Power first
Fixing Pakistan’s power sector is the most urgent near-term priority, Banga said, noting that losses and inefficiencies in electricity distribution have limited growth despite improvements in generation capacity.
Pakistan’s power sector has long been plagued by growing debt from distribution losses, weak bill recovery and delayed government subsidies, which has strained public finances and discouraged private investment. The debt has been a recurring focus of IMF-backed reform programmes, with successive governments struggling to contain losses while keeping energy affordable.
Banga said progress on privatisation and private-sector participation in electricity distribution would be critical to improving efficiency, reducing losses and restoring the sector’s financial viability.
He said rapid rooftop solar adoption, while easing energy costs for households and businesses, risks creating grid instability if distribution reforms are not accelerated.
“Electricity is fundamental to everything — health, education, business and jobs.”
Climate by design
Banga said climate resilience should also be embedded into mainstream development spending rather than treated as a standalone agenda.
Pakistan is among the world’s most climate-vulnerable countries, hit repeatedly by floods, heatwaves and erratic monsoons.
Banga said climate-resilient investments should be integrated into infrastructure, housing, water management and agriculture to support jobs while reducing long-term risks.
“The moment you start thinking about climate as separate from housing, food or irrigation, you create a false debate. Just build resilience into what you’re already doing.”
Asked how Pakistan fits into the World Bank’s global portfolio, Banga said he does not view the country through labels such as fragility or crisis, but as a long-term job-creation opportunity.
“We’re in the business of hope,” he said.
Business
India says it will maintain multiple sources of energy supply
India plans to maintain multiple sources of energy supply and diversify them when needed as New Delhi looks to ensure consumers receive “adequate energy at the right price through reliable and secure supplies”, Indian Foreign Secretary Vikram Misri said on Monday.
Misri was responding to a question at a media briefing seeking clarity on India’s position on the purchase of Russian oil after US President Donald Trump said last week that New Delhi had “committed to stop directly or indirectly” importing it.
“India’s priority is to safeguard the interests of its consumers through an energy policy driven by adequate availability, fair pricing, and reliability of supply,” Misri said.
He added that India was neither dependent on any single source for crude oil nor did it “intend to be”, importing from a “mix of sources” depending on “objective market conditions”, adding that “national interests” guide both the government and Indian energy companies.
Last week, Trump signed an executive order lifting the punitive 25% tariff on all imports from India over its purchase of Russian oil.
The Kremlin earlier said it saw nothing new in India’s announcement that it would diversify its energy sourcing.
India’s Russian oil imports slipped in January as refiners sought more alternative barrels under Western sanctions pressure and US-India trade talks, Reuters reported.
Business
Pakistan to invest $1bn in artificial intelligence by 2030, announces PM
Prime Minister Shehbaz Sharif on Monday announced the government’s plan to invest $1 billion in artificial intelligence (AI) by 2030.
The Indus AI Week 2026 is being held from February 9 to 15 (Sunday). The event’s website describes it as “Pakistan’s official national platform for artificial intelligence — where policy, innovation, talent and investment converge”.
“The Government of Pakistan is committed to investing $1 billion in AI by 2030, which will go a long way in building an AI ecosystem in our country,” the premier said while addressing the event’s inauguration ceremony in Islamabad.
Announcing further steps the country aims to take to keep up with modern technologies, PM Shehbaz said an AI curriculum would be introduced “not only in all federally-controlled or -run schools but all schools” of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB).
He emphasised that the plan would be implemented in remote parts of Balochistan as well to “pair our youth for leadership and digital economy”.
The prime minister further said the government would provide 1,000 fully-funded PHD scholarships in AI to students across the country by 2030, which is aimed at building Pakistan’s “world-class research centre fully capacitated”.
“Last but not least, we will launch a nationwide programme to train 1 million non-IT professionals in AI skills, enabling them to enhance productivity and improving livelihoods,” he added.
“Pakistan is absolutely ready to accept the challenge and walk with our global partners, absolutely with great commitment and dedication,” PM Shehbaz affirmed.
He elaborated that agriculture and mines and minerals would be among the areas of focus, adding that the government aimed to empower the youth, which he said comprises 60 per cent of the country’s total population.
“We have to empower them with modern knowledge and modern techniques, and IT startups and IT technicians are already very concerned and feeling the heat and the challenge,” he noted, assuring them the government would bring programmes to “transform them from IT technicians to AI experts”.
He added this would unlock unprecedented gains in agricultural yield, quality and efficiency, as well as in industrial growth and women’s empowerment.
The government approved the National AI Policy in July 2025 to democratise access to artificial intelligence, enhance public services and open up new employment and innovation avenues.
However, the policy’s implementation has stalled more than six months after its approval due to a government decision to amend the composition of the AI Council and a lack of response from provincial governments.
The only pillar of the National AI Policy currently being implemented is creating “Awareness and Readiness”. Officials claim the Indus AI week is the first step in this regard.
‘Nothing short of a game-changer’
At the outset of his address, the premier noted that the Indus AI Week is “going to not only change the technological landscape of Pakistan, but this will be nothing short of a game-changer”.
“In collaboration with our most friendly and brotherly countries, we will start running on this shared pathway with great commitment and enthusiasm,” he added.
PM Shehbaz stressed that the government of his brother and ex-premier Nawaz Sharif was “striving our best to be in line with modern requirements and meet modern challenges”.
He recalled that as the chief minister of Punjab back then, the government undertook various initiatives which were “very, very relevant and important to the promotion of education, health, revenues and encouraging our youth”.
The premier highlighted that the Punjab government initiated a laptop distribution scheme in 2010 in the province’s schools and colleges. He further mentioned that the government rolled out e-libraries and e-stamp papers, with the latter aimed at generating “additional revenue which was being siphoned off through collusion”.
PM Shehbaz also pointed out the computerisation of land records in Punjab carried out with “great partnership with World Bank, which eased out corrupt revenue officers”.
“They were carrying bags in their offices. They were tinkering with the record, and money was exchanged in hands. All of this was brought to a grinding halt through complete digitisation,” he asserted.
The prime minister highlighted that the country’s first Safe City project — which uses surveillance cameras to reduce crime — and the first IT university were established in Lahore.
“Here we are today, learning our lessons from the past and today Pakistan is absolutely ready on its toes to join the world in the field of AI interventions,” he affirmed.
PM Shehbaz also mentioned the digitalisation process of the Federal Board of Revenue (FBR), saying it was “almost transformed” at this point.
He said: “It’s doing a great job. We have controlled smuggling in Pakistan through various, most modern initiatives, bringing in scanners and other digital instruments which have been installed at various ports of Pakistan.
“We are recovering lost sums of money [and] tax evaded through collusion through these platforms.”
“Our commitment is solid, unwavering. We will never look back, we will keep on moving forward, marching forward till a point will soon come one day when Pakistan will find its destiny among the comity of nations.”
Addressing the event, IT Minister Shaza Fatima Khawaja said Indus AI Week aimed to strengthen coordination between universities, governments and international companies, state-run APP reported.
She noted that the Pakistan Digital Authority was preparing a nationwide digital master plan to guide future transformation.
In his remarks, Planning Minister Ahsan Iqbal highlighted that the world had entered a moment where intelligence itself had become a factor of production, with nations competing on ideas, talent, data and technology rather than commodities.
He described AI as a bigger “disruptor” than electricity or the internet.
The minister stated that Pakistan’s engagement with technology began over two decades ago with early IT policies, the creation of the National Database and Registration Authority (Nadra), and large-scale investment in advanced human capital.
Business
Pakistan to invest $1bn in AI by 2030, announces PM Shehbaz
Prime Minister Shehbaz Sharif on Monday announced the government’s plan to invest $1 billion in artificial intelligence (AI) by 2030.
The Indus AI Week 2026 is being held from February 9 to 15 (Sunday). The event’s website describes it as “Pakistan’s official national platform for artificial intelligence — where policy, innovation, talent and investment converge”.
“The Government of Pakistan is committed to investing $1 billion in AI by 2030, which will go a long way in building an AI ecosystem in our country,” the premier said while addressing the event’s inauguration ceremony in Islamabad.
Announcing further steps the country aims to take to keep up with modern technologies, PM Shehbaz said an AI curriculum would be introduced “not only in all federally-controlled or -run schools but all schools” of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB).
He emphasised that the plan would be implemented in remote parts of Balochistan as well to “pair our youth for leadership and digital economy”.
The prime minister further said the government would provide 1,000 fully-funded PHD scholarships in AI to students across the country by 2030, which is aimed at building Pakistan’s “world-class research centre fully capacitated”.
“Last but not least, we will launch a nationwide programme to train 1 million non-IT professionals in AI skills, enabling them to enhance productivity and improving livelihoods,” he added.
“Pakistan is absolutely ready to accept the challenge and walk with our global partners, absolutely with great commitment and dedication,” PM Shehbaz affirmed.
He detailed that agriculture and mines and minerals would be among the areas of focus, adding that the government aims to empower the youth, which he said comprises 60 per cent of the country’s total population.
At the outset of his address, the premier noted that the Indus AI Week is “going to not only change the technological landscape of Pakistan, but this will be nothing short of a game-changer”.
“In collaboration with our most friendly and brotherly countries, we will start running on this shared pathway with great commitment and enthusiasm,” he added.
PM Shehbaz stressed that the government of his brother and ex-premier Nawaz Sharif was “striving our best to be in line with modern requirements and meet modern challenges”.
He recalled that as the chief minister of Punjab back then, the government undertook various initiatives which were “very, very relevant and important to the promotion of education, health, revenues and encouraging our youth”.
The premier highlighted that the Punjab government initiated a laptop distribution scheme in 2010 in the province’s schools and colleges.
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