Pakistan's Economic Model Failed, Only Benefits Elite People: World Bank

In the wake of the economic crisis in Pakistan, World Bank Country Director for Pakistan, Najy Benhassine said that Pakistan's economic development is limited to the elite, resulting in the country lagging behind its fellow countries, Pak Vernacular media reported.

He noted that Pakistan's economic model has become ineffective and said that poverty reduction is starting to increase again, the significant reduction in poverty in the past is resurfacing, the thought is growing that the policy must be changed, economic development in Pakistan is not sustainable.

Najy Benhassine stated that the economic development in Pakistan is limited and benefits people, Pakistan is under the influence of environmental changes, and the deficiencies in the agricultural and energy sectors should be removed.

The country director of the World Bank said that the focus of energy reform should be financial stability, better distribution, private sector and focus on generating alternative electricity instead of expensive ones. goes

He said that Pakistan has an opportunity to become one for a bright future. Still, the system, cost of debt and sources of income in Pakistan are not sustainable, and spending on people and infrastructure development is limited, Pakistan newspaper Dawn reported.

Pakistan is heavily exposed to climate change, with the potentially devastating impacts of climate shocks and natural disasters already apparent, he said in Development Advocate Pakistan, the UNDP's quarterly development magazine providing a platform for Pakistan's authorities, civil society and intelligentsia to exchange ideas on key development solution pathways in the country.

Benhassine emphasised that policy failures in the agri-food sector should be addressed. In agriculture, reforms are required to unwind the subsidies and price restrictions that lock smallholder farmers into a low-value farming system and encourage resource-intensive and environmentally damaging production practices.

The World Bank Country director said action was needed to change policies holding back development.

Reforms in the energy sector should consolidate progress towards financial sustainability, improve the efficiency of distribution companies, including through increased private participation, and address the very high costs of electricity generation through increased renewable generation, the World Bank official said.

"The question is whether those with power and influence will take the opportunity arising from the current crisis to do what is needed. It is time for Pakistan to come together in the interests of a brighter, more prosperous, and more sustainable future," the World Bank country director stressed.

The World Bank country director emphasised that fiscal management must be drastically improved, and debt servicing costs and domestic revenue mobilisation are at unsustainable levels, leaving inadequate resources to invest in human development and infrastructure, address economic challenges, and adapt to a changing climate.

Najy Benhassine also said that government spending also needs reforms, a free economy and growth will improve the quality of life, and the business environment especially small businesses needs a better environment. (ANI)