The World Bank says Pakistan's present economic paradigm is ineffective

 The World Bank says Pakistan's present economic paradigm is ineffective

The World Bank says Pakistan's present economic paradigm is ineffective

According to Benhassin, Pakistan's existing economic model is failing since the country has lagged behind its peers, some progress has been made in reducing poverty, but it is now starting to reverse, and a small elite has benefited disproportionately from prosperity.

According to a senior World Bank official, Pakistan's existing economic model is failing, highlighting the need for the cash-strapped nation to alter policies that have stunted development and favored a select few. As.

World Bank Country Director Najy Benhassin made these remarks in an essay titled "Policy Vision" that was just released in a UNDP magazine. According to Benhassin, Pakistan's existing economic model is failing since the country has lagged behind its peers, some progress has been made in reducing poverty, but it is now starting to reverse, and a small elite has benefited disproportionately from prosperity.

According to Benhassin, who was mentioned in the Dawn daily, there is a general agreement that policies that have stunted development, favored a small number of people, and produced very unstable and poor growth must be changed. As.

According to him, Pakistan is heavily impacted by climate change. The potentially disastrous effects of climate shocks and natural disasters are already apparent, and this is forcing Pakistan's government, intellectuals, and civil society to address important issues. He made this claim in UNDP's quarterly development magazine Development Advocate Pakistan. offers a forum for the exchange of ideas. routes to the nation's development solutions.

Benhassin emphasized that it is imperative to tackle policy shortcomings and imbalances in the vital agri-food and energy domains. Reforms in the agricultural sector are required to do rid of price caps and subsidies that force small farmers into low-value farming systems and promote resource-intensive, ecologically harmful production methods.

According to a World Bank official, changes in the energy sector should accelerate the shift toward financial sustainability. Some strategies to do this include boosting private investment, enhancing distribution firms' operational effectiveness, and raising the proportion of power generated from renewable sources. Cost has to be taken into consideration.

Such policy reforms are clearly needed, but history demonstrates that every reform initiative will encounter opposition.

It remains to be seen whether those in positions of authority will seize the chance provided by the current situation to take the required action. The Country Director of the World Bank emphasized that cooperation is now needed to ensure that Pakistan has a more promising, successful, and sustainable future. According to him, fiscal management has to be significantly improved. He also said that debt servicing expenses and domestic revenue mobilization are at unsustainable levels, leaving little money for investments in infrastructure and human development, dealing with economic difficulties, and making adjustments to the changing environment. are still present.

In order to reinforce and enhance the quality of government expenditure, reforms are required. These reforms must reduce losses from inefficient state-owned businesses, such as those in the energy sector, and eliminate regressive and distorting subsidies.

He advocated raising progressive wealth taxes and lowering tax breaks for activities that harm the environment in order to extract more money from the rich.

The World Bank official went on to say that increased growth and an open, dynamic economy are necessary for raising living standards. Reducing tax distortions that benefit non-tradable items or protecting inward-facing industries is necessary to promote exports.

The general business climate has to be improved, particularly for smaller enterprises. It is critical to cut down on bureaucracy and potential for expensive discretion in government commercial operations.

According to Benhassin, maintaining a more stable economic climate that draws in investors would require permanently correcting underlying macroeconomic imbalances, especially on the fiscal side. According to Yong Ye, the Asian Development Bank's Country Director for Pakistan, the organization needs a consistent pace of change and well-coordinated national policies to provide the favorable circumstances needed to solve the intricate economic issues that impede long-term progress. I concur. obtaining successful outcomes from aid for development.

According to Yong Ye, ADB has played a significant role in Pakistan's transition. The organization is dedicated to supporting Pakistan through its next stage of development in order to advance prosperity, inclusion, resilience, and stability in line with ADB Strategy 2030. As stated in the Dawn newspaper.