WB lists Pakistan among economically struggling nations

Islamabad: The World Bank has included Pakistan in the list of economically challenged and heavily indebted nations.

The World Bank's assessment suggests that Pakistan's debt burden could surge to 89.3% of its Gross Domestic Product (GDP) by the year 2027.

The World Bank has expressed concerns regarding the significant influence wielded by Pakistan's members of parliament, cabinet officials, finance ministers, cabinet committees, and members of standing committees in shaping the nation's tax policies.

This influence, the World Bank argues, has hindered the progress of necessary reforms.

To tackle these challenges, the World Bank recommends implementing comprehensive tax measures aimed at reducing subsidies and curbing expenditures, thus addressing the annual fiscal deficit of Rs2,723 billion.

The macroeconomic outlook for Pakistan remains uncertain, hinging on effective reform implementation, the short-term budget for the current fiscal year, the International Monetary Fund (IMF) standby agreement, market-based currency valuation, and the successful execution of monetary and fiscal policies.

These measures hold the potential to foster economic stability and counter macroeconomic, political, and policy instability.