The World Bank Country Director for Pakistan, Najy Benhassine, has raised serious concerns about the economic development in Pakistan, stating that it primarily benefits the elite and falls short of benefiting the larger population. He emphasized that the current economic model has become ineffective and poverty reduction efforts are losing ground, indicating the need for policy changes. Benhassine identified challenges from environmental changes, particularly in the agricultural and energy sectors, and highlighted the urgency of addressing deficiencies in these areas.

He recommended that energy reform should prioritize financial stability, better distribution, involvement of the private sector, and the promotion of alternative, cost-effective electricity generation. While acknowledging Pakistan's potential for a bright future, Benhassine expressed concerns about the sustainability of the current economic system, the high cost of debt, and limited spending on people and infrastructure development. He also emphasized Pakistan's vulnerability to climate change, urging action to address the potentially devastating impacts of climate shocks and natural disasters.

In terms of policy failures, he specifically highlighted the need for agricultural reforms to unwind subsidies and price restrictions that hinder smallholder farmers and contribute to environmentally harmful farming practices. Additionally, he proposed reforms in the energy sector to enhance financial sustainability, improve distribution efficiency, and reduce the high costs of electricity generation through increased renewable energy sources.

Benhassine stressed the urgency of significant improvements in fiscal management, pointing out that debt servicing costs and domestic revenue mobilization have reached unsustainable levels. He also emphasized the need for reforms in government spending and the promotion of a free economy to enhance the quality of life and create a better business environment for small businesses. In conclusion, Benhassine underscored the necessity for those with power and influence to seize the opportunity arising from the current crisis to work towards a brighter, more prosperous, and more sustainable future for Pakistan. (with input from agencies)