Key Reforms Crucial for Pakistan’s Sustainable Economic Growth: World Bank

Karachi: Pakistan’s path to sustainable economic growth depends heavily on the reforms implemented over the next twelve months, according to Najy Benhassine, Country Director of the World Bank (WB). Speaking at a seminar titled ‘Human Capital, Energy, Climate Change, and Infrastructure: The Role of the Private Sector’, organized by CFA Society Pakistan, Benhassine emphasized that Pakistan’s economic trajectory is on track, with the potential for sustained growth if economic stability continues.

“If stability continues, it will help restore investor confidence,” Benhassine said, stressing the importance of reforms to unlock Pakistan’s growth potential. He highlighted the manufacturing and industrial sectors as key areas where Pakistan holds significant promise. The WB official noted that while a growth rate of 7-8% would be ideal, even a 5% growth rate could be sufficient to advance the economy. He underscored that the reforms over the coming year would play a pivotal role in determining Pakistan’s long-term economic path.

During the seminar, Kamran Kamal, CEO of Hub Power Company Limited (HUBCO), emphasized the vital role of the private sector in the energy transition. He urged an increase in electricity demand to support industrial power consumption, pointing out that financing for energy transition projects is available for the private sector. However, Kamal also warned about the shift to solar energy by high-income individuals and industries, which has already led to a 10% reduction in grid demand. He criticized the power sector’s flawed planning, leading to overgeneration of electricity while demand remains low.

Dr. Farhat Abbas, CEO of Aga Khan University Hospital, addressed the pressure rapid population growth places on Pakistan’s resources, particularly in the health sector. He called for greater collaboration between the public and private sectors to tackle this growing challenge. Despite signs of economic recovery, Abbas warned that Pakistan still lags behind in human development indicators.

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Ali Aamir, CFO of The Citizens Foundation, highlighted the ongoing education crisis, with 25 million children still out of school. He expressed disappointment that the government’s “education emergency” had yet to yield significant improvements in literacy rates.

As the country faces multiple challenges, experts agree that timely reforms and concerted efforts across key sectors will be crucial for Pakistan’s future economic growth.