World Bank Recommendations to Pakistan for Economical Crisis


The specific recommendations made by the World Bank to Pakistan to deal its economic predicament have been made public. According to specifics, the World Bank has made a number of recommendations, including reducing the availability of conventional regressive subsidies, cutting spending, and freezing government hiring and salaries, and has stated that Pakistan can only achieve “sustainable growth” through economic reforms.

Media reports

According to the World Bank has released its report on Pakistan’s development, recent economic development and related concerns. Cut government staff and operational costs through austerity, freeze top- and middle-level hiring and wages while modestly raising wages at lower levels as needed and reducing pension costs through reforms.

Some of its important recommendations listed below:

Government Expenses:

The report recommends that the government single Treasury Account will reduce borrowing requirements and interest costs, stop the purchase of government vehicles while reducing government staff meetings and travel expenses and use of petrol. Phase out ministries transferred to provinces after the 18th Amendment.


According to the suggestions given in the World Bank report, targeted subsidy provision should be improved by ending the electricity subsidy in Pakistan, while cash subsidy of gas should be given through Benazir Income Support and National Socio-Economic Registry.

Petroleum levy:

Petroleum subsidies should be eliminated or reduced, sales tax exemptions should be reduced, while subsidies and loans to public sector entities should be eliminated, and loss-making government entities should be abolished and governance should be improved in government entities.

Agriculture Sector:

Regarding the agriculture sector, the report said that the tube well subsidy should be removed as it encourages wasteful consumption, wheat support price subsidies benefit big landowners, improve property and agriculture taxes by raising taxes or introduce new ones.

Sales Tax Rate:

Taxes should be levied. According to the proposals presented by the World Bank, the Eighth Schedule of the Sales Tax Act should be abolished and equal rates should be imposed on all items, the zero rating list should be reserved for the export sector, while the premium excise rate should be imposed on cigarettes by combining two levels of expenditure. The World Bank in its report suggested that the tax schedule of salaried and non-salaried classes should be unified and the personal income tax structure should be simplified while exemption of duties on imports should be abolished.

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