Afghan Voice Agency (AVA) - Monitoring: Pakistan has been facing severe economic problems and high inflation in the last two years. The country's Ministry of Finance announced this year that it has received a three billion dollar loan from the International Monetary Fund to control the crisis in the country, but a World Bank report suggests that fundamental changes should be made in Pakistan's economic plans to improve the country's economy.
The World Bank warned that poverty in Pakistan has increased from 32.4% to 39.4% in one year, and with the new wave of economic crisis and the increase in poverty, at least 12.5 million more people are close to extreme poverty.
According to Independent, in the World Bank report published on Friday, September 22, the government of Pakistan has been suggested to strengthen its economy by focusing on reforms in the private sector, including agriculture and energy production.
The report also adds that measures such as the rapid increase of taxes on GDP to 5% and the reduction of expenses to about 2.7% of GDP can improve the economy of this country.
"The World Bank is very concerned about [Pakistan's] economic situation," said Tobias Haque, chief economist at the World Bank.
He added that Pakistan is facing serious economic and human development crises and is at a point where fundamental policy changes are needed.
The chief economist of the World Bank said about the efficiency of the economic programs of the government of Pakistan: "Pakistan's economic model can no longer reduce poverty and the living standards in this country are lagging behind those of its peers."
However, Naji Benhasin, Country Director of the World Bank in Pakistan, said that an important moment has come to change economic policies in Pakistan, but the question is whether all enterprises involved in economic affairs agree with the changes that are going to be implemented or not.
In his speech at the United Nations General Assembly on Friday, Anwar Haq Kakar, the Prime Minister of the interim government of Pakistan, said that his country has been damaged in the past two years due to the epidemic of the Corona virus and devastating floods, and the recovery of the country's economy requires cooperation at the international level. Kakar added that Pakistan is launching extensive economic programs with China and Central Asian countries in order to strengthen its own economy and contribute to the stability and economic improvement of Central Asia and South Asia.