Islamabad: The World Bank has released a report on the reform program Riseto.
According to the World Bank, after the election in Pakistan, the new government may withdraw several measures, the organized interest group may quickly withdraw the necessary reforms, due to the interests of the organized interest group, the risks to the stakeholders are high, the new government It could end gas, energy and tax measures, while subsidies, trade tariffs and property taxes could also end.
The World Bank says that the future government does not know the basic reforms and priorities, the threats to governance are high due to political pressure after the next election, financial restrictions may end due to political reasons, difficult reforms to implement. A promise to continue can read into jeopardy.
According to the report of the World Bank, the risks are high on the termination of the standby agreement with the IMF. At the end of the standby agreement, Pakistan’s reserves will be equal to one and a half months of imports, while additional external assistance is required after the termination of the agreement from the IMF. Will be.
The report further states that due to frequent changes in important positions, the ability to execute and sustainability are in danger, it is necessary to eliminate the wrong policies in the agricultural sector and the expenditure in the sectors transferred to the provinces, it is also necessary to eliminate the expenditure on the provincial development projects by the federal government. Yes, agriculture, small traders and real estate will have to increase the scope of the tax net in the tax net. Reforms are necessary to reduce costs and losses in the energy distribution sector.
The World Bank says that losses of state institutions must be reduced through privatization, the investment environment must be made easier by reducing red tape options, foreign capital will decrease without comprehensive reforms, import restrictions are expected to maintain foreign reserves. which will affect the economic performance while it is a positive thing that there is support for financial management on the political scene, it is a positive thing that there is support for revenue reform on the political scene.
The World Bank report has said that it will continue to support Pakistan together with the IMF, and large-scale reforms are needed to increase financial stability and investment.
