World Bank warns Pak of looming economic breakdown Islamabad

The World Bank has issued an advisory to Pakistan, warning that the country’s export crisis is no longer a temporary problem but a result of deep, long-standing structural flaws. In its latest assessment, the Bank says Pakistan’s weak exports are caused by inconsistent policies, distorted markets and a constant failure to reform, according to a report by The News International. It urges the government to adopt a market-based exchange rate, cut high energy and input costs, and overhaul trade agreements that have brought little benefit. According to the report, Pakistan’s export performance has sharply declined over the decades. In the 1990s, exports made up about 16 per cent of GDP. By 2024, this figure had dropped to just 10 per cent, even as countries like Vietnam, Bangladesh and India made major gains. The World Bank estimates that Pakistan is losing out on nearly $60 billion worth of potential exports because of poor policies and governance gaps. The World Bank also criticised Pakistan’s high cost of doing business, especially due to expensive electricity and rising input prices. Industrial power tariffs in Pakistan are nearly double those in countries that compete with it, such as Bangladesh and Vietnam. @@@@