Artificial intelligence (AI) could significantly change Pakistan’s job market, with 61% of service sector workers employed in occupations with above-median AI exposure, according to a new World Bank report.
The report, titled Job Opportunities and AI in Pakistan, highlights opportunities to improve productivity alongside concerns about potential job losses.
It found that Pakistan’s average occupational AI exposure score in 2024 was 0.48 standard deviations below the median. However, AI exposure differs considerably across industries, with the service sector facing the greatest impact.
Most Exposed Sectors
According to the report, more than 80% of workers in wholesale and retail trade, finance, insurance, real estate, and education hold jobs with high AI exposure.
In comparison, only 7% of manufacturing workers and 5% of workers in other industrial sectors face similar exposure. Agriculture has the lowest share, at less than 1%.
AI and Job Replacement
The World Bank noted that high AI exposure does not necessarily mean workers will lose their jobs, as the technology can also help employees perform their tasks more efficiently.
Around 18% of employed workers in Pakistan hold jobs with both high AI exposure and strong potential for human-AI collaboration.
Meanwhile, only 8% work in highly exposed occupations with limited opportunities for AI assistance, suggesting that a smaller proportion of jobs face a greater risk of replacement.
Impact on Key Industries
Real estate and education have greater potential to benefit from AI-assisted work, as the technology can complement existing job responsibilities.
However, wholesale and retail trade has both a large workforce and high AI exposure, making it particularly important to Pakistan’s transition toward AI-driven workplaces.
Agriculture, despite employing a significant share of the country’s workforce, remains largely unaffected by direct occupational AI exposure. Nevertheless, AI could help improve agricultural productivity over time.
Future of Jobs in Pakistan
The World Bank warned that AI’s impact will depend on how businesses and workers adopt the technology.
Access to relevant skills and supporting investments will also determine whether AI creates productivity gains or leads to job displacement.
The report highlights the importance of preparing Pakistan’s workforce for changing job requirements while encouraging businesses to adopt AI to improve productivity.
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