World Bank warns growth insufficient to create jobs, boost incomes

Pakistan’s economy is forecast to expand by 3.8 percent in fiscal year 2027, but the World Bank says that pace will not be enough to deliver jobs and higher household earnings. Business Recorder reported that the Bank’s latest Pakistan Development Update puts growth at 4.5 percent by fiscal year 2031 on current policies, compared with 6.2-6.9 percent if major reforms close policy and institutional gaps.

The report says poverty climbed from 22 percent in 2018-19 to 29 percent in 2024-25, while labour productivity grew by an average of only 0.4 percent a year during 2014-24. Pakistan added 17.7 million net jobs between 2018 and 2024, but most were in low-wage, low-productivity work; meanwhile, 3.6 million people reach working age annually. The Bank urged changes spanning taxation, energy, trade and investment, alongside fiscal discipline, to turn economic stability into broader gains in employment and incomes.