Pakistan’s Economic Model: A World Bank Perspective

Pakistan's Economic Model: A World Bank Perspective

Nadia Nawaz | December 31, 2023 | 10:39 AM IST | Pakistan News, World | Follow on Google News

Pakistan’s Economic Model: A World Bank Perspective/Reuters

Pakistan’s Economic Model: A World Bank Perspective

In a recent Policy Vision article published by the World Bank Country Director Najy Benhassine, concerns have been raised about Pakistan’s current economic model. The country, according to Benhassine, has fallen behind its peers, witnessing a reversal in significant progress in poverty reduction. Furthermore, the benefits of economic growth seem to be disproportionately favoring a narrow elite.

Challenges in Agri-Food and Energy Sectors

Benhassine emphasizes the need for policy reforms in critical sectors, particularly in agri-food and energy. In agriculture, he suggests unwinding subsidies and price restrictions to break the cycle that keeps smallholder farmers in a low-value farming system. In the energy sector, reforms should aim at achieving financial sustainability, improving the efficiency of distribution companies, and addressing the high costs of electricity generation through increased renewable sources.

Facing Opposition: A Call for Unity and Reform

While the necessity for policy shifts is recognized, Benhassine acknowledges the challenges that reform efforts might face, especially from those with power and influence. The article highlights the urgency for Pakistan to come together during this crisis to build a brighter, more prosperous, and sustainable future.

Benhassine stresses the need for drastic improvements in fiscal management, addressing unsustainable debt servicing costs, and mobilizing domestic revenue for investment in human development and infrastructure. He calls for cutting regressive subsidies, reducing losses from inefficient state-owned enterprises, and increasing progressive taxation to ensure a fair distribution of the burden.

In conclusion, the World Bank Country Director emphasizes that sustainable economic growth and improved living standards require a more dynamic and open economy. Structural macroeconomic imbalances, especially on the fiscal side, need to be durably addressed to attract investors and ensure a stable economic environment. The article echoes the sentiments of Yong Ye, the Country Director of the Asian Development Bank in Pakistan, who underscores the importance of consistent country policies and an uninterrupted reform momentum for addressing complex economic challenges and achieving effective outcomes from development assistance.

Nadia Nawaz

Nadia Nawaz – a new journo in digital journalism covers stories, reports/articles from Pakistan. Nadia writes on various topics, include Politics, Economy,Sports and finance. she further holds a high head in field of graphic designing. Nadia can be reached on nawaznadia20@gmail.com