Lahore, Martin Raiser, the World Bank’s Regional Vice President for South Asia, delivered a significant speech at Lahore University of Management Sciences (LUMS), emphasizing Pakistan’s current economic challenges and potential reform paths for recovery.

According to The World Bank, Raiser’s speech, part of a series of events launching World Bank policy notes on key reform priorities, highlighted the critical moment Pakistan is facing amidst one of the worst economic crises in its history. The speech followed consultations across Pakistan, including in Punjab, as part of the World Bank’s ‘Reforms for a Brighter Future’ initiative. Raiser acknowledged the contributions of the Pakistan Institute for Development Economics (PIDE) and LUMS in facilitating these discussions.

Raiser pointed out the dire state of Pakistan’s economy, exacerbated by last year’s catastrophic floods and a silent human capital crisis, particularly in South Punjab. He emphasized the need for multi-sectoral reforms, especially in the wake of upcoming federal and provincial elections. Raiser mentioned the country’s falling behind in key development metrics, comparing current situations with historical data where Pakistan was a regional leader in human and economic development.

The speech focused on the high child stunting rates in Pakistan, an issue Raiser described as a part of the ‘silent’ human capital crisis. He emphasized the need for a different, multi-sectoral approach to address this issue, incorporating water and sanitation infrastructure, health and nutrition facilities, and behavioral change. Raiser suggested that with targeted interventions and additional investments, stunting rates could be halved in a decade.

Raiser also touched upon other aspects of Pakistan’s economic crisis, including low productivity growth, a closed economy, energy sector inefficiencies, and water resource management. He called for interlinked reforms in fiscal policy, trade, agriculture, and energy, and the potential role of digital technologies and local governments in public service delivery. He stressed the need for a change in the relationship between citizens, businesses, and the state, to rebuild trust and strengthen accountability.

In conclusion, Raiser expressed the World Bank’s continued support for Pakistan, emphasizing the urgent need for comprehensive reforms and national efforts to address the country’s human development crisis. He urged for an approach that would transform the current crisis into an opportunity for substantial change, benefiting the nation’s large and growing workforce.