ISLAMABAD: A leading international financial institution has urged politicians and policymakers in Pakistan to jointly develop an economic reform program and work toward climate-resilient and sustainable development at a time when the upcoming general elections are fast approaching in January.
Over the past few years, Pakistan has undergone one of the most challenging economic phases in its history, marked by record-high inflation, severe balance of payment crisis, critically low foreign exchange reserves, and historic depletion in its currency against the US dollar.
While the country averted default on its international obligations with a $3 billion bailout from the International Monetary Fund (IMF) this year, it still needs to stabilize the economic situation to ensure long-term sustainability.
The World Bank, which has traditionally played a strong role in influencing policy discussions and provided development guidance to countries, decided to make its draft discussion notes available to the Pakistani public prior to the upcoming elections.
It said the move aimed at fostering more productive outcomes and facilitating discussions among an array of stakeholders to identify essential policy changes required to guide the economy toward sustainable growth.
“Pakistan is at a critical moment, possibly at a turning point moment and the economic situation is dire, so a difficult adjustment is needed to restore growth sustainably,” World Bank Country Director Najy Benhassine said during the launch of a new program called “Reforms for a Brighter Future: Time to Decide” in Islamabad this week.
He said that to streamline its economy, Pakistan needed a “broad-based policy shift” that went beyond mere labeling as a “Charter of Economy” and focuses on achieving consensus on a minimum reform agenda.
“There was a lot of stop-and-go as well as policy reversals in the past, so there is a need for a broader economic reforms agenda with full implementation mechanism,” he continued.
As part of the newly launched program, the World Bank and Pakistan Institute of Development Economics conducted extensive consultations across the country to seek inputs and feedback on the recommendations included in the draft discussion notes, the international financial institution said in a statement.
These included discussions with students across 21 universities and provincial roundtables with thinkers from academia, and the public and private sectors.
“Participants in all four provinces have shared insights and perspectives that have helped shape the understanding of what it would take to put Pakistan back on a path toward sustainable, climate-resilient, and inclusive growth.”
It added that the program would continue in the coming months in both online and at in-person formats in the country.
The notes, according to the statement, propose a set of fundamental policy changes for Pakistan, which include improving service delivery and social protection systems, particularly for vulnerable communities.
They recommend prioritizing investments in public services, infrastructure, and climate adaptation. Additionally, the notes suggest creating a more inclusive, efficient, and equitable tax system.
They also advocate for a transition to a more dynamic open economy driven by private investment and exports, as well as promotion of a market-driven and productive agricultural sector.
Finally, they call for a shift toward a sustainable and clean energy sector and emphasize the importance of establishing accountable, efficient, and transparent government practices, even at the local level.