Pakistan's economic model failed: World Bank
Pakistan is a nation with 9.93 billion US dollars in foreign reserves and a GDP growth rate of 6.5 percent.
Although Pakistan is a neighboring country, Pakistan severed all ties with India following the revocation of Article 370.
When we examined Pakistan's economy in-depth, we discovered that the nation's army, politicians, and peoples are all out of balance.
We have to comprehend why the head of the World Bank made this comment.
There are certain institutions that a democracy can withstand, including the legislative, executive, judicial, and media branches.
Pakistan is a country that is only a democracy on paper because the leaders chosen by the people there must operate under the authority of the army.
In their remarks, Najy Benhassine, the World Bank's country director for Pakistan, expressed concern about the following factors.
i) Poverty: The World Bank estimates that 95 million people in Pakistan are living in poverty, with nearly 40% of the country's population falling below the poverty line.
In just one year, the country's poverty rate increased from 34.2% to 39.4%.
ii) Challenges from environmental changes: A recent flood disaster that affected 30 million people in Pakistan was caused by climate change.
In Pakistan, the agriculture sector primarily produces wheat and rice, which are the staple foods. However, due to climate change, agriculture is negatively impacted.
Due to poor management, a heavy debt burden, rapid climate change and its effects, such as floods, Pakistan faces difficulties in meeting its growing energy demands. It also frequently relies on fossil fuels.
iii) Income Distrubution: In a democracy, poor management breeds corruption, which has the effect of improperly distributing income.
In Pakistan, the wealthy continue to get richer while the poor continue to get poorer.10% of the population owns 60% of the wealth, while the remaining 60% only possess a tenth of it.
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