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Staff Report
ISLAMABAD: Pakistan’s external credit worth standing has improved sharply, says the Pakistan Country Update published by World Bank here on Saturday.
The World Bank also praised the financial stability of Pakistan, saying the foreign exchanges reserves have improved considerably and the rupee appreciated against the currencies of its main trading partners, most rapidly against the dollar.
In Pakistan Country Update, the Bank has also acknowledged that the remittances from abroad jumped to double and possibly tripled their 2000-01 levels. “Public expenditure on development has begin to rise as percentage of GDP while spending on interest and defence has fallen.”
“However, Pakistan needs to have an aggressive deregulation process to remove the “hassle factor” of doing business that comes from the mock enforcement of unneeded rules and regulations.”
‘The hassle factor’ has plagued the efforts of particularly small businessmen trying to earn a livelihood by employing others and producing what Pakistani consumers and business want.
“Pakistan has a high-cost-operating environment for business and this depresses investment, employment and production.
The World Bank stresses that good governance requires clear accountability for the use of public resources, a civil administration serving the public interest, respect for the rule of law and a level of playing filed for private activities through creation of sound enabling regulatory environment.
“Owing to bad governance and inefficiencies, close to Rs200 billion of taxpayers’ hard- earned money has been provided to keep WAPDA, KESCO, PISA, Pakistan Railways and Pakistan Steel afloat,” the report said.
Poverty in Pakistan, the Bank says, has dropped as in some other countries in the region, but other social indicators of primary enrolment and infant mortality in Pakistan are worse than those of other countries in the subcontinent.
Source: Daily Times