The World Bank has recommended key reforms to boost Pakistan’s economic growth and ensure long-term stability. Its report highlights tax collection, irrigation, and energy subsidies. Officials say linking fuel subsidies to social protection programs could help vulnerable populations while reducing fiscal losses.
The report stresses that Pakistan must strengthen its tax system to increase government revenue. Energy subsidies should be redirected to the Benazir Income Support Program. This step can also help curb circular debt and reduce misallocation of resources.
Read more: World Bank pushes Pakistan toward smarter revenue growth
Water scarcity is a major concern, the report notes. Inefficient irrigation wastes water and limits crop yields. Modern irrigation projects in Punjab show water use can fall by 57% and crop yields rise by 14–31%. Groundwater depletion across South Asia remains a serious risk.
Environmental and social reforms are also emphasized. The World Bank recommends measures to reduce pollution and improve revenue. Climate risk facilities can support small businesses affected by floods, building resilience and encouraging inclusive growth.
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The report concludes that combining fiscal, agricultural, and social reforms can strengthen Pakistan’s economy. Sustainable water use, subsidy reforms, and modern policies are essential for future growth.