The World Bank, represented by Vice President Martin Razor, opposes the idea of raising electricity prices in Pakistan. Instead, they stress the need to tackle power line losses as a priority.
Razor highlighted concerns about deferring local loans, warning that it could potentially impact Pakistan’s banking sector and overall investment landscape. He emphasized the importance of ongoing economic reforms, urging continuity beyond the upcoming elections and stressing the crucial implementation of economic policies.
Razor also emphasized the necessity of increasing Pakistan’s tax to GDP ratio from 2 to 3 percent. He pointed out the importance of not only enhancing tax collections but also implementing reforms in both expenditure and taxation concurrently. Razor cautioned against solely focusing on raising tax revenue without supporting the agricultural sector, as it could pose challenges.
Furthermore, Naji bin Hussain, the World Bank’s Country Director for Pakistan, mentioned that the Board of Directors would convene at the end of December, confirming the allocation of $2 billion to Pakistan for the current fiscal year.
