Pakistan has once again turned to the World Bank for financial support under its International Development Association (IDA) programs. Finance Minister Muhammad Aurangzeb, during his recent meeting with World Bank President Ajay Banga in Washington, requested more funds to help stabilise the country’s economy. He also emphasised the need for major reforms in Pakistan’s power and gas sectors to ensure efficiency and long-term sustainability. While he expressed gratitude to the Bank for its previous assistance, especially after the devastating floods, he called for more technical help in agriculture and tariff policy, stressing that empowering small farmers through technology and cooperative models could improve resilience. The minister also praised the Bank’s role in Pakistan’s Country Partnership Framework and urged expanded collaboration.
However, this renewed appeal once again exposes Pakistan’s deep dependence on foreign institutions for economic survival. Relying on the World Bank and other external lenders may provide short-term relief, but it cannot solve the country’s long-standing economic challenges. In fact, this dependence often leads to more complications, as every loan comes with strict conditions that limit policy flexibility and increase the burden on the common people. The time has come for Pakistan to seriously rethink its strategy and focus on building self-reliant financial and economic systems rather than repeatedly seeking external help.
A nation that invests in its people rarely has to depend on others.
For decades, Pakistan’s economic policies have revolved around borrowing to bridge budget gaps, cover deficits, or fund development projects. This approach has created a cycle of dependency, where every few years the government turns to the World Bank, IMF, or other donors for another bailout. Such loans, while offering temporary stability, do not build lasting strength. Instead, they often lead to more debt, higher interest payments, and reduced sovereignty in decision-making. A truly sustainable solution lies in developing and utilising Pakistan’s own resources more effectively.
Self-reliance does not mean isolating from the global community. It means strengthening the internal foundations of the economy so that Pakistan can negotiate with international partners from a position of stability rather than desperation. The government must take bold steps to expand its domestic resource base, increase productivity, and promote industries that can generate income within the country. One of the most important steps is to expand the tax base. Pakistan’s tax-to-GDP ratio is among the lowest in South Asia, with a large portion of the economy, particularly in agriculture, retail, and services, remaining outside the tax net. The burden mostly falls on salaried individuals, while many wealthy landowners and traders continue to evade taxes. Instead of relying on loans, the government should implement fair and comprehensive tax reforms that bring every capable citizen and business into the system. This would provide a consistent revenue stream and reduce the need for foreign borrowing.
Another vital step toward self-reliance is to strengthen export-led growth. Pakistan’s exports are heavily concentrated in the textile sector, which makes the economy vulnerable to global demand fluctuations. Diversification is essential. The government must promote value-added sectors such as information technology, engineering, pharmaceuticals, and agro-based products. By supporting innovation and providing incentives for export-oriented industries, Pakistan can earn foreign exchange through trade rather than loans. Strong exports not only improve the balance of payments but also create jobs and attract investment.
Pakistan also needs to make better use of its natural and human resources. The country is blessed with immense natural wealth, minerals, fertile lands, and a large young population, but much of this potential remains untapped. Balochistan alone contains vast reserves of copper, gold, and other minerals that, if developed properly with transparency and modern technology, could generate billions in revenue. Similarly, the fertile plains of Punjab and Sindh can become agricultural powerhouses if modern irrigation and mechanisation are introduced. Alongside these, Pakistan’s youth can be turned into a productive force through quality education, skill development, and support for entrepreneurship. A nation that invests in its people rarely has to depend on others.
The energy sector, as the finance minister mentioned, is another critical area demanding reform. Circular debt, power theft, and inefficiency have made the system financially unsustainable. Instead of using borrowed funds to pay off energy debts, the government should adopt long-term solutions such as investment in renewable energy, solar, wind, and hydropower. Pakistan has abundant sunshine and vast potential for clean energy, which can reduce dependence on imported fuel and bring down production costs. Efficient management, transparent billing, and private sector participation can turn the energy sector from a burden into a source of stability.
Agriculture also requires a serious transformation. Despite being the backbone of Pakistan’s economy, it suffers from outdated methods, limited access to credit, and vulnerability to climate change. The government must promote the use of technology, satellite-based weather forecasts, smart irrigation systems, and digital platforms to connect farmers directly with markets. Cooperative farming models, where small farmers pool their resources and share profits, can help reduce costs and improve productivity. Pakistan can learn from countries like China and Turkey, where small-scale farmers became part of the national growth story through modern techniques and cooperative systems.
While foreign assistance from the World Bank and others can be useful in specific technical areas, such as policy guidance or development expertise, overreliance on loans is dangerous. Every external loan comes with conditions that influence domestic priorities. Decisions about tariffs, subsidies, or taxation often end up being shaped by lender requirements rather than local needs. This erodes national independence and weakens public confidence in the government’s ability to manage its own economy.
Pakistan has reached a stage where financial dependence is no longer sustainable. The country’s debt obligations are growing, while foreign exchange reserves remain under pressure.
The writer works at College Education Department, Government of Sindh.