Either remain poor or change your path… World Bank warns Pakistan to improve its economic policies

The World Bank has said that poverty in Pakistan has increased to 39.4 percent in the last financial year. More than 12.5 million people are suffering due to poor economic conditions. The World Bank has urged the cash-strapped country to take immediate steps to achieve financial stability. Unveiling the draft policy notes, the Washington-based lender said poverty in Pakistan rose from 34.2 percent to 39.4 percent within a year, with more than 12.5 million people falling below the poverty line. It states that approximately 95 million Pakistanis now live in poverty. Pakistan’s economic model is no longer reducing poverty, and living standards have lagged behind peer countries.

Tobias Haq, the World Bank’s chief country economist for Pakistan, said the global lender also urged Pakistan to take immediate steps to reduce taxes on its agriculture and real estate and cut wasteful spending to achieve financial security. The World Bank identified low human development, unsustainable fiscal position, over-regulated private sector, agriculture and energy sectors as priority areas for reforms for the next government and proposed measures to immediately raise the tax-to-GDP ratio. Increase by 5 percent and expenditure was cut by about 2.7 percent of GDP.

Tobias Haq said that the World Bank is very concerned about today’s economic situation. He said that Pakistan is facing a serious economic and human development crisis. Neji Benhassin, country director for Pakistan at the World Bank, said this could be a moment of significant policy change for Pakistan.