World Bank announced a new initiative to promote discussion of Pakistan’s pressing policy challenges.
The World Bank has started a new initiative to promote discussion of Pakistan’s crucial development policy concerns. The goal of “Reforms for a Brighter Future: Time to Decide” is to involve a wide range of stakeholders in talks about what basic policy changes are most essential to permanently steer the economy toward stronger, more climate-resilient, and sustainable growth and development. A number of draft Discussion Notes were published today as part of this consultation program. These will gradually become more complete as a result of input from many different stakeholders. The Notes, which are based on both extensive research on Pakistan and worldwide experience, suggest major policy changes that are required to depart from the present low-growth, anti-development status quo:
- In order to decrease the abnormally high rates of child stunting and improve learning outcomes for all children, particularly for girls, service delivery and social protection systems must move from underfunded, ineffective, and fragmented to coordinated, efficient, and adequately financed service delivery systems that target the most vulnerable.
- A shift away from wasteful and rigid public spending that only benefits a select few in favor of strictly prioritized spending on infrastructure, public services, and investments in climate adaption that help the communities most in need. a broad-based, effective, progressive, and equitable tax system that generates enough money to considerably enhance public investment in infrastructure, human development, and climate adaption, as opposed to one that is narrow, distorting, and unfair.
- From a protected, unproductive, and stagnating economy with a strong state presence to a vibrant, open economy propelled by exports and private investment.
- A more market-driven, productive agricultural system, including value chains that are resilient to the effects of climate change and water scarcity, is being developed in place of agricultural sector regulations that bind farmers into low-value, low-productivity farming.
- Moving away from policies in the energy sector that promote high energy costs, environmental harms, and unsustainable debt accumulation in the direction of effective, sustainable, and resilient generation and distribution, based on precise price signals, increased competition and private participation, and a cleaner energy mix.
- Moving away from an ineffective, frequently inefficient, and susceptible to capture by special interests public sector and toward accountable, effective, and transparent government, notably at the local level.
Pakistan has been struggling with a number of economic issues, including as inflation, rising electricity costs, severe climate shocks, and a lack of public resources to support development and climate adaptation—despite the fact that the nation is one of the most susceptible to the effects of climate change. As a result of abnormally high child stunting rates, poor learning results, and high child mortality, it is also experiencing a “silent” human capital crisis, according to Najy Benhassine, Country Director for the World Bank in Pakistan.
These discussion points add to the ongoing discussions about long-standing policy concerns that Pakistan’s great economic and development potential are being muted by. Concerning the issues and challenges, there is a logical consensus. Determining precise answers necessitates candid discussions about important, fundamental policy choices. We anticipate that this conversation series will contribute to the formation of a shared vision for an inclusive, sustainable, and climate-resilient development.
