ISLAMABAD: The World Bank’s latest South Asia development report urges reforms in Pakistan to boost tax revenue, modernize irrigation, and align energy subsidies with social protection programs. Key recommendations include improving agriculture and social sectors for sustainable growth.
Strengthening Pakistan’s tax system is essential for increasing revenue. Linking energy subsidies to the Benazir Income Support Program could reduce waste, cut losses, and address circular debt. Redirecting fuel subsidies toward social programs would support vulnerable groups while ensuring fiscal stability.
Pakistan’s water crisis stems from inefficient irrigation and agriculture, causing significant wastage. Modernized irrigation in Punjab has shown water savings of 57% and crop yield increases of 14–31%. The report warns of rapidly depleting groundwater across South Asia, urging sustainable water management and agricultural reforms.
To curb pollution and improve revenue, environmental measures should be prioritized. Social sector reforms, like establishing a climate risk facility for flood-affected small businesses, aim to strengthen resilience against climate risks while fostering inclusive economic growth.
