KARACHI: The country director of the World Bank described Pakistan’s economic model as ineffective.
World Bank Country Director Naji bin Hussain said that Pakistan’s economic model has become dysfunctional, with substantial reductions in poverty in the past, which are now increasing while the benefits of economic growth are limited to the elite.
The country director said that the economic development in Pakistan is not sustainable, its economic development is limited and benefits limited people, Pakistan is lagging behind its fellow countries, and the thinking is growing that policy change is necessary.
Naji bin Hussain said that Pakistan is under the influence of environmental changes, the defects of the agricultural and energy sectors should be removed, the focus of energy reform should be financial stability, better distribution, private sector and instead of expensive, alternative electricity should be focused on. There seems to be consensus on the idea of change, while experience suggests that reforms are blocked.
The World Bank Country Director added that Pakistan has an opportunity to become one for a bright future. In Pakistan, the system, cost of debt and sources of income are not sustainable, spending on people and infrastructure development is limited, and government spending also needs to be reformed. Need, free economy and growth will improve quality of life, business environment especially small business need better environment.