Islamabad: The World Bank, the international financial institution, hasexpressed concerns about Pakistan’s economic situation and has labeled itas the weakest country in South Asia.
Addressing a seminar in Islamabad, the World Bank representative, MatthewVerghese, stated that Pakistan’s economic model is not sustainable, andPakistan is spending more than its income.
He mentioned that Pakistan is generating more expenditures than revenues,resulting in an increasing current account deficit. Pakistan ranks lowestin terms of GDP in the region and changing its future will depend oninvestments within the country.
The World Bank representative also warned that Pakistan is facingincreased risks due to environmental events. The rate of deaths due toenvironmental changes is rising, and people are directly affected byfloods. Verghese emphasized that Pakistan’s economic model has failed, buteconomic recovery is possible if Pakistan implements reforms.
Read Top Stories
Currently, Pakistan is the slowest-growing economy in South Asia. Hefurther mentioned that recent economic policies in Pakistan cannotestablish stability.
In terms of tax revenues, Pakistan also lags behind in South Asia, withIndia and Sri Lanka surpassing Pakistan’s per capita income. In hisaddress, the World Bank representative also noted that challenges aregrowing for Pakistan’s economy, and improving human resources should be apriority.
