World Bank rings alarm bells for Pakistan's economy
Islamabad: The World Bank, the international financial institution, has expressed concerns about Pakistan's economic situation and has labeled it as the weakest country in South Asia.
Addressing a seminar in Islamabad, the World Bank representative, Matthew Verghese, stated that Pakistan's economic model is not sustainable, and Pakistan 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 lowest in terms of GDP in the region and changing its future will depend on investments within the country.
The World Bank representative also warned that Pakistan is facing increased risks due to environmental events. The rate of deaths due to environmental changes is rising, and people are directly affected by floods. Verghese emphasized that Pakistan's economic model has failed, but economic recovery is possible if Pakistan implements reforms.
Currently, Pakistan is the slowest-growing economy in South Asia. He further mentioned that recent economic policies in Pakistan cannot establish stability.
In terms of tax revenues, Pakistan also lags behind in South Asia, with India and Sri Lanka surpassing Pakistan's per capita income. In his address, the World Bank representative also noted that challenges are growing for Pakistan's economy, and improving human resources should be a priority.