The World Bank has declared Pakistan's economic model ineffective, citing concerns that the country is trailing behind its counterparts due to a dysfunctional economic system that primarily benefits the elite class. Naji bin Hussain, the Country Director for Pakistan at the World Bank, emphasized that the current economic development in Pakistan is unsustainable, with the benefits of growth disproportionately favoring a select few, says in media reports. In the World Bank's report, Hussain highlighted the need for addressing deficiencies in the agricultural and energy sectors, emphasizing that the economic growth should be broadened to have a more inclusive impact. The report also expressed concerns about the environmental challenges faced by Pakistan. According to Hussain, policy changes are imperative to ensure sustainable economic development, especially in light of the growing realization that substantial past poverty reductions are stalling and poverty rates are on the rise again. The World Bank Country Director pointed out that the current system, cost of debt, and income sources in Pakistan are not sustainable. He urged a shift towards focusing on financial stability, improving distribution, involving the private sector, and exploring alternative, cost-effective methods of electricity generation in energy reforms.

Hussain emphasized the need for unity in Pakistan for a brighter future, calling for reforms in government spending, a move towards a free economy, and improved growth that enhances the overall quality of life. He highlighted the importance of creating a conducive business environment, particularly for small businesses. This is not the first time the World Bank has raised concerns about Pakistan's economic policies. The report also touched upon issues related to the privatization process in the country. The World Bank expressed apprehensions that political interference and legal complications could hinder the privatization process. Notably, the privatization program has faced setbacks since the Supreme Court's 2007 verdict in the Pakistan Steel Mills and Recodec judgments, tarnishing Pakistan's international image. The World Bank recommended that the government address delays in the privatization of various institutions, particularly in the power sector, where labor union resistance and political disagreements have impeded progress. The report suggested that bringing government companies to the stock market and ensuring a transparent privatization process could be a viable solution to overcome challenges associated with privatization in Pakistan.

Credit: Independent News Pakistan (INP)