The World Bank has started a new program to stimulate discourse on Pakistan’s major development policy challenges.
‘Reforms for a Brighter Future: Time to Decide’ Program of World Bank
‘Reforms for a Brighter Future: Time to Decide’ aims to engage a broad variety of stakeholders in talks about what basic policy reforms are most needed to guide the economy toward stronger, more climate-resilient, and sustainable growth and development.
This consultation program involves the release of a set of draft Discussion Notes today.
These will be gradually improved as a result of feedback from a wide range of stakeholders.
Program Key Points
The Notes, which draw on international experience as well as a significant body of research on Pakistan, offer key policy reforms that are required to shift away from Pakistan’s existing low-growth, anti-development status quo:
- From underfunded, inefficient, and fragmented service delivery and social protection systems towards coordinated, efficient, and adequately financed service delivery, targeting the most vulnerable—in particular to reduce abnormally high child stunting rates and to increase learning outcomes for all children, especially for girls.
- From wasteful and rigid public expenditures benefiting a few, towards tightly prioritized spending on public services, infrastructure, and investments in climate adaptation, benefiting populations most in need.
- From a narrow, distortive, and inequitable tax system towards one that is broad-based, efficient, progressive, and equitable—generating sufficient revenues to significantly increase public investment in human development, infrastructure, and climate adaptation.
- From a protected, stagnant, and unproductive economy with a large state presence towards a dynamic open economy driven by private investment and exports.
- From agriculture sector policies that lock farmers into low-value, low-productivity farming towards a more market-driven, productive agricultural system, including value chains that are resilient to climate change impacts and water scarcity.
- From energy sector policies that drive high energy costs, environmental harms, and unsustainable accumulation of debt, towards efficient, sustainable, and resilient generation and distribution, based on accurate price signals, increased competition and private participation, and a cleaner energy mix.
- From a public sector that is inefficient, often ineffective, and vulnerable to capture by vested interests towards accountable, efficient, and transparent government, including at the local level.
Najy Benhassine, Country Director for the World Bank in Pakistan Statement
“Pakistan has been facing numerous economic hardships including inflation, rising electricity prices, severe climate shocks, and insufficient public resources to finance development and climate adaptation—when the country is among the most vulnerable to climate change impacts.
It is also facing a ‘silent’ human capital crisis: abnormally high child stunting rates, low learning outcomes, and high child mortality,” said Najy Benhassine, Country Director for the World Bank in Pakistan.
“These discussion notes contribute to debates on long-standing policy issues that are muting Pakistan’s high economic and development potential.
There is reasonable consensus on priorities and challenges. Determining specific solutions requires open debates on concrete, fundamental policy decisions.
We hope this program of discussions will help build a consensus around a path towards inclusive, sustainable, and climate-resilient development,” he added.
Why Pakistan Need This Program?
As part of the ‘Reforms for a Brighter Future’ engagement program, the World Bank and the Pakistan Institute of Development Economics held extensive consultations across the country to solicit input and feedback on the draft Discussion Notes’ proposals.
Discussions with students from 21 universities have taken place, as have provincial roundtables with academics, public and private sector leaders.
Participants from all four provinces provided thoughts and perspectives that helped shape the understanding of what it would take to re-establish Pakistan on a path of sustainable, climate-resilient, and inclusive growth.
The ‘Reforms for a Brighter Future’ initiative will continue in the coming months, both online and at in-person events across the country, including tonight and tomorrow’s national conversation in Islamabad.
To read our blog on “World Bank predicts that Pakistan’s GDP per capita income will fall by $214.7 in 2022-23,” click here.