In Islamabad, on Monday, the Caretaker Prime Minister Anwaar-ul-Haq Kakarheld a meeting with Najy Benhassine, the Country Director for Pakistan atthe World Bank Group.
This meeting occurred at a time when Pakistan faces numerous economicchallenges. The South Asian nation is navigating a challenging journeytoward economic recovery under a caretaker government, following theapproval of a $3 billion loan program by the International Monetary Fund(IMF) in July, which averted a sovereign debt default.
However, meeting the conditions for the IMF loan, including reforms, hascomplicated the task of managing inflation and the depreciation ofPakistan’s rupee. Recent weeks have seen nationwide protests due torecord-high electricity and fuel prices. The relaxation of importrestrictions and the removal of subsidies have contributed to annualinflation, reaching a record 38.0 percent in May.
Interest rates have also climbed, and the rupee has reached historic lows,with a 6.2 percent decline last month. In a statement from the PrimeMinister’s office after his meeting with Benhassine, Kakar emphasized theWorld Bank’s role in developing underprivileged areas of Pakistan,especially remote regions like Balochistan.
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He stated that the government’s foremost priority is to promote developmentin these less-developed areas, similar to other parts of the country.Pakistan’s economic challenges were further compounded by climate-relateddisasters, including record monsoon rains and glacier melting, whichdisplaced around 8 million people and claimed at least 1,700 lives. Thiscatastrophe, attributed to climate change, cost the economy $30 billion indamages. Many homes and kilometers of infrastructure still requirereconstruction.
The Prime Minister acknowledged the World Bank’s assistance inrehabilitating those affected by the 2022 floods and pledged administrativesupport to complete ongoing rehabilitation efforts in affected areas.
