The World Bank’s latest South Asia development report outlines reforms essential for Pakistan’s growth. The report focuses on strengthening tax collection, modernizing irrigation, and linking energy subsidies to social protection programs. Experts say these steps can ensure sustainable economic development while supporting vulnerable populations.
According to the report, Pakistan must improve its tax system to increase revenue. Linking electricity and gas subsidies to the Benazir Income Support Program can reduce misallocation of funds. This approach may also help curb circular debt, which has long affected the country’s fiscal stability. Redirecting fuel subsidies toward social welfare programs can ensure that financial support reaches those who need it most.
Agriculture is another key area for Pakistan’s growth. Inefficient irrigation and outdated farming practices have caused significant water wastage. The World Bank highlighted modern irrigation projects in Punjab, which reduced water usage by 57% and increased crop yields by 14–31%. These results show that sustainable water management can directly boost agricultural productivity. The report also warns that groundwater resources are rapidly depleting, calling for long-term reforms in water use and agricultural practices.
The World Bank also emphasizes environmental and social reforms. Measures to reduce pollution can improve revenue collection and overall economic efficiency. In addition, climate-related initiatives, such as a climate risk facility for small businesses, are recommended. These programs aim to protect enterprises affected by floods and other climate hazards while promoting inclusive growth.
Social sector improvements are equally important. Strengthening healthcare, education, and social protection programs can support Pakistan’s growth while ensuring that vulnerable populations benefit from economic reforms. The report stresses that combining fiscal, agricultural, and environmental reforms will create a resilient foundation for the country’s development.
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Overall, the World Bank’s report presents a roadmap for Pakistan’s growth. By improving tax collection, modernizing irrigation, linking subsidies to social programs, and addressing climate risks, Pakistan can achieve sustainable and inclusive development.
