ISLAMABAD: The World Bank has released a report on development in South Asia, emphasizing the need to improve Pakistan’s tax system and expand the tax base. The report also suggests discouraging pollution as a way to increase revenue.
According to the World Bank, groundwater levels in South Asia are rapidly declining, and Pakistan is among the world’s most water-scarce countries. Poor irrigation systems and inefficient agricultural practices are leading to significant water wastage. The report noted that modern irrigation projects in Punjab have saved 57 percent of water, while advanced agricultural initiatives have increased crop yields by 14 to 31 percent.
In Pakistan, electricity and gas subsidies are being linked to the Benazir Income Support Programme (BISP). Subsidy reforms are expected to reduce misallocation, financial losses, and circular debt. The World Bank suggested that fuel subsidies could instead be redirected toward social protection programmes.
The report further stated that a climate risk facility is being established for small businesses affected by floods. BISP has been made more effective through digital systems, and during the COVID-19 pandemic, assistance was provided to 12 million families through the programme. Self-registration facilities for aid are available in Pakistan and the Maldives.
