According to Martin Raiser, the World Bank’s Regional Vice-President for South Asia, Pakistan’s economy is stuck in a low-growth trap, with poor human development outcomes and rising poverty.
According to an official statement issued on Tuesday, Raiser, who is in Pakistan to reaffirm the World Bank’s commitment to supporting the people of Pakistan, has launched a series of policy notes that identify important policy adjustments required for a productive, sustainable, resilient, and healthy Pakistan.
The World Bank has issued policy notes, titled “Reforms for a Brighter Future — Time to Decide,” focusing on key areas such as child stunting, fiscal sustainability, private sector growth, energy, learning poverty, agriculture, and climate change. The notes, the result of extensive outreach and engagements across Pakistan, highlight the need for reforms ahead of upcoming elections.
Expressing concern, a World Bank official emphasized that Pakistan’s economy is trapped in low growth, leading to poor human development outcomes and increasing poverty. The country is also vulnerable to climate shocks, lacking sufficient resources for development and climate adaptation.
The policy notes call on Pakistan to address its human capital crisis, tackling issues like stunting and learning poverty through coordinated efforts between provincial and federal governments. The recommendations include improving the quality of public spending, expanding the revenue base, and implementing business regulatory and trade reforms.
Additionally, the notes advocate reducing the state’s presence in the economy to boost productivity, competitiveness, and exports. They emphasize the need to eliminate distortions affecting the agricultural and energy sectors, including subsidy reform and privatization of electricity distribution companies.
Highlighting alarming statistics, the World Bank statement mentioned that almost 40% of children in Pakistan suffer from stunted growth, while over 78% cannot read and understand a simple text by the age of 10.
The World Bank official, during his visit to Pakistan, will engage with federal and provincial officials, private sector representatives, and academia. He will also visit key projects, including hydropower projects in Dasu and Tarbela, as well as project sites in Sindh and Punjab.
