Daily Times

From the International Monetary Fund to now the World Bank, besides friendly nations, Pakistan is advised in one word: reform. When asked about the range of reforms, it becomes clearer the reforms range from monetary policies to energy, finance, governance and beyond. The entire system needs to be reformed. According to World Bank Vice President for South Asia, Martin Raiser, Pakistan’s limited reforms in energy, water, and revenue sectors are major obstacles to economic progress. Raiser says that Pakistan has made some positive moves, but many more are needed. Pakistan’s future depends on extensive reforms in various sectors. The country must prioritize investments, governance, and policy changes to ensure economic growth and prosperity. Only through continuous reform can Pakistan overcome its challenges and unlock its full potential.

The country faces huge challenges like the impact of climate change, high energy costs, and underdeveloped tax systems. To deal with climate issues, Raiser suggested carbon pricing and global compensation for affected countries. The World Bank is working to ensure that at least half of the climate funds go into adaptation measures for the most vulnerable nations.

Pakistan has been paying high energy prices due to long delays in reforms. The country’s energy sector struggles with inefficiency and high costs, mainly due to poor governance and outdated infrastructure. Raiser emphasized that better planning, investments in renewable energy, and grid stability could help lower costs and improve services in the long term.

On the issue of Pakistan’s tax system, Raiser was right that the wealthy do not feel motivated to pay taxes because they don’t receive quality services in return. The World Bank is working to digitize the tax system to improve efficiency, but it requires political support for success. Pakistan also needs to improve social protection programmes and reduce subsidies to allocate more resources for human development and healthcare. *