World Bank dubs Pakistan’s economic model unsustainable
The World Bank has raised concerns over Pakistan’s economic
sustainability, attributing it to the nation's heavy reliance on loans.
Speaking at a discussion on financial and governance reforms
organized by the Pakistan Institute of Development Economics in Lahore, Matthew
Varghese, the Regional Director of the World Bank for South Asia, highlighted
that Pakistan's debt-to-GDP ratio has surged to 80 percent, leading to
expenditure surpassing income and a consequent rise in both domestic and
external debts.
Read More World
Bank concerned over obstacles in privatization of Pakistan’s State Owned
Entities (SOEs)
Varghese emphasized that Pakistan's economic model,
predicated on borrowing, is not viable in the long term, necessitating urgent
reforms to tackle the unfolding economic crisis.
He suggested that by leveraging its youthful demographic,
abundant natural resources, and strategic geographical position, Pakistan has
the potential to attain annual growth rates of 7 to 8 percent in overall
national production.
Source: Minute Mirror