The World Bank called on Pakistan to simplify the regulations and make its economic horizons expected to attract more investment and stimulate growth significantly.
Martin Razer, the bank’s vice president of South Asia, said in an interview with him in Islamabad last Friday that the country in Southern Asia could witness an annual growth rate to be accelerated by 8% if it doubled the investment and used its assets and human capital better.
Investment rate
“If you invested 12% of the gross domestic product, do not expect miracles … you will not grow. It is so simple.”
The Ministry of Finance data showed that the average investment rate to GDP in Pakistan has decreased to less than 15% in recent years, which is the lowest level in the region, and it is expected that the country’s economy will grow by 3% this year, according to a survey conducted by Bloomberg to economists. .
Last week, the World Bank, which is based in Washington, approved a 10 -year partnership framework for Pakistan, which Razer says aims to help the government make the country’s business climate more stable.
Pakistan’s economy faced successive courses of prosperity and corruption after unaccural and unusual financial policies have caused a lack of financing for vital sectors, including health and education, with the spending of nearly half of the government’s revenues to pay debts and defense.
The country, with a population of more than 240 million people, is lower in the human capital index of the World Bank compared to other countries of South Asia.
Pakistani Prime Minister Shahbaz Sharif aims to achieve 3.6% growth by the end of next June after avoiding economic stumbling last year with external assistance. Within the framework of the International Monetary Fund loans program for a period of 3 years, he pledged to increase government revenues and fill financial leaks through restructuring and privatizing state -owned companies.
Razer said that the increase in the tax rate to GDP to 15% is “largely implemented” by reducing the exemptions that protect “some special interests” and combat tax evasion and the collection system.
loan
Reuters quoted Pakistani Finance Minister Mohamed Orangezib as saying that Pakistan had agreed to a billion dollar loan conditions with two banks in the Middle East at a interest rate of between 6% and 7%, at a time when Islamabad is looking to obtain more funding.
“We have now advanced with two institutions towards signing the note of the conditions, one bilateral and the other for trade (financing),” Orangeli added during an interview on the sidelines of the annual meeting of the World Economic Forum in Davos last week.
Orangeli explained that the loans are short -term or up to one year.
