WB opposes further hike in power prices in Pakistan

Islamabad: The World Bank opposed the further increase in electricity prices in Pakistan.

Martin Reiser, Vice President of the World Bank, said that there is no need to increase electricity prices, however the power line loses should be reduced.

He also objected to deferment of local loans and stated that deferment of local loans may affect the banking sector and investment, therefore Pakistan has to be careful in the process of deferment of local loans.

The Vice President of World Bank added: “Before the election, discussions on economic reforms have been held with the political parties. The process of economic reforms should continue, and the implementation of economic policies is necessary”.

Martin Razor further said that Pakistan has to increase the tax to Gross Domestic Product (GDP) ratio from two to three percent, simply collecting taxes is not enough. There is a need to work together on spending and tax reforms, increasing tax revenue without providing facilities to the agricultural sector.

In addition, World Bank Country Director Naji bin Hussain added that the meeting of the Board of Directors of World Bank will be held at the end of December, where two billion dollars will be provided to Pakistan in this financial year.