Karachi, During the launch of the World Bank’s policy notes in Karachi, Regional Vice President for South Asia Martin Raiser emphasized the need for fundamental economic reforms in Pakistan. Speaking at the event, part of the Reforms for a Brighter Future initiative, Raiser addressed various challenges and potential reform areas critical for Pakistan’s economic revival.

According to World Bank, Raiser’s speech highlighted the urgency for Pakistan to address its current economic crisis, worsened by catastrophic floods and a silent human capital crisis. He pointed out that Pakistan, once admired for its development progress, has fallen behind its regional peers in terms of economic and human development indicators.

Raiser outlined a reform agenda focusing on five key areas: addressing the human capital crisis, achieving fiscal sustainability, shifting towards a competitive open economy, reviving the agriculture sector, and reforming the energy sector. He stressed the importance of addressing the acute crisis of child stunting, particularly severe in rural Sindh, and improving education quality nationwide.

He also called for comprehensive fiscal reforms, including increasing tax collection and reducing wasteful spending. The World Bank VP urged for reforms to boost competitiveness and export orientation, highlighting that this could create jobs and address the low participation rate of women in the workforce.

In agriculture, Raiser advocated for reallocating government spending to public goods, research, and innovation, arguing that this would reduce poverty, lower imports, and decrease food prices. For the energy sector, he emphasized the need to address underlying issues causing high costs.

Raiser concluded by highlighting the importance of improving relations between federal, provincial, and local governments and giving local governments more responsibility and autonomy. He reassured the World Bank’s support for Pakistan’s journey towards prosperity, noting that the advice given stems from a position of care and concern for the country’s future.