World Bank warns AI adoption could disrupt Pakistan’s job market

The World Bank has warned that rapid adoption of artificial intelligence (AI) could place additional strain on Pakistan's labour market, particularly for educated youth, as automation increasingly replaces knowledge-intensive tasks in an economy already struggling to generate high-quality formal jobs.

 

In its World Development Report 2026, the Bank identified Pakistan as one of the more vulnerable economies in the MENAAP region due to high youth unemployment and weak private-sector job creation. It said AI-driven disruption could further limit employment opportunities unless accompanied by policies that promote job creation, reskilling, and digital competitiveness.

 

The report noted that while only 4.5% of jobs in low- and middle-income countries face automation risks, 16.2% of jobs could see meaningful productivity gains from AI. It urged developing economies to invest in electricity, connectivity, digital skills, computing infrastructure, and local data to maximise AI's benefits while avoiding wider inequality and labour market disruptions.