Pakistan’s potential            Author – Khawaja Aftab Ahmed

Pakistan finds itself at a decisive turning point, staring down the barrel of an imminent employment crisis. With millions of young people poised to enter the job market every year, the clock is ticking fast. Unless the country pulls its socks up and lays out a clear strategy, unemployment will tighten its grip, dragging along poverty and instability in its wake. The World Bank Group, with IFC at its helm on the private sector front, is putting its shoulder to the wheel, aiming to create more meaningful jobs that don’t just fill pockets but shape futures. Given Pakistan’s precarious Human Development Index ranking and staggering poverty figures, the nation’s economic vitality hinges on smart policy, sound investment, and a mobilised private sector.

The writing’s on the wall: public-sector planning alone won’t cut the mustard. A major chunk of Pakistan’s economy runs informally, making it harder to channel growth. The solution lies in rallying private capital, fostering innovation, and building enabling environments through smarter regulations and inclusive financial systems. IFC’s recent investment surge proves that with the right push, opportunities can bloom even in challenging soil. Their three-pronged approach — laying foundations, shaping policy, and unlocking private capital — serves as a lodestar for Pakistan’s future. It’s high time we turned our demographic bulge into a dividend rather than a disaster waiting to happen.

Overview:

This article, penned by Khawaja Aftab Ahmed of the International Finance Corporation, highlights the massive employment and economic challenge Pakistan faces, compounded by a growing young population, low female participation, and limited access to formal financial services. It outlines how job creation is not only an economic need but also a social and political necessity. The article showcases the efforts of the World Bank Group and IFC to counter these challenges through a holistic three-part strategy, including infrastructure development, policy reform, and private sector mobilisation.

NOTES:

This article provides a clear thought into the socioeconomic landscape of Pakistan with specific emphasis on employment, financial inclusion, and private sector development. It is particularly useful for understanding developmental policy frameworks and international collaboration. The mention of job gaps, poverty statistics, and female labor participation also connects with gender studies and economic policy topics. This article is a  strong example of institutional intervention and the role of global financial bodies like the WBG and IFC in shaping national economies.

Relevant CSS Syllabus Topics:

• Pakistan Affairs
  • Economic challenges and prospects
  • Youth bulge and demographic trends
  • Employment issues and workforce planning
  • Role of international institutions in Pakistan’s development
• Current Affairs
  • Public-private partnerships in development
  • Pakistan’s ranking in international indices (HDI, poverty, etc.)
  • Socioeconomic implications of unemployment and informal economy
• Governance and Public Policies
  • Policy formulation and implementation in job creation
  • Financial inclusion and regulatory reforms
  • Infrastructure development and human capital investment
• International Relations
  • Role of World Bank Group and IFC in developing economies
  • Global development agendas and Pakistan’s participation

Notes for beginners:

Pakistan is facing a massive challenge because its population is growing fast, especially among the youth. Around 3 million people will enter the job market every year, and if they don’t find jobs, problems like poverty and instability will increase. More than 42 percent of the population lives below the poverty line of $3.65 per day. The female participation rate is only 25 percent, which is among the lowest in South Asia. The informal sector, which means unregistered and untaxed businesses, makes up 40 percent of the economy and provides 70 percent of jobs. This makes it difficult to plan and improve the economy. To solve this, the International Finance Corporation, a part of the World Bank, is investing in Pakistan by supporting small businesses and creating jobs. In 2024, IFC invested $2.1 billion, helping to create 40,000 jobs. They also focus on improving education, health, and policies to make it easier for businesses to grow.

Facts and figures:

• Pakistan has over 240 million people; two-thirds are under 30
• 3 million new job seekers will enter the workforce annually over the next decade
• 42 percent live below the $3.65/day poverty line
• Female labor force participation: 25 percent
• Informal economy accounts for 40 percent of GDP and 70 percent of jobs
• IFC invested $2.1 billion in FY24, supporting 40,000 jobs including 8,600 for women
• Human Development Index ranking: 164th out of 193 countries
• Financial inclusion: 64 percent overall, 42 percent for women

To sum up, This article is a timely reminder that Pakistan’s demographic energy can either fuel progress or ignite crisis depending on how we channel it. The emphasis on private sector mobilisation, female inclusion, and formal economic participation outlines a realistic yet hopeful roadmap. The IFC’s expanding investment footprint and data-driven strategies show that meaningful change is possible if public and private hands work in tandem. In a world of increasing uncertainty, job creation isn’t just a statistic — it’s the seedbed for national stability and prosperity.