Friday, October 21, 2022
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Pakistan will have to take 'tough' decisions for economic recovery: World Bank

World Bank says damage assessment report is expected next week; hopes Pakistan will implement reforms as promised

A person enters the building of the Washington-based global development lender, The World Bank Group, in Washington. — AFP
A person enters the building of the Washington-based global development lender, The World Bank Group, in Washington. — AFP

  • World Bank hopes Pakistan will focus on economic reforms. 
  • Says report of estimated flood losses will be relased next week. 
  • It adds allocation of $2bn in funds has been announced so far.


WASHINGTON: The World Bank on Friday said that Pakistan will have to take "tough" decisions for economic recovery, hoping that the country will focus on reforms as promised.

"We acknowledge that it will be difficult for Pakistan to work on the reforms considering the economic situation of the country after the floods as they have caused enormous damage," said the World Bank.

The financial institution said that the report of the estimated losses due to the floods will be released next week. "We cannot comment on the figures shared elsewhere," it said. 

The World Bank said that the United Nations, European Union and other international organisations are involved in the preparations of the report, adding that the amount of the aid will be decided only after the damage is estimated. 

It said that the allocation of $2 billion in funds has been announced so far.

Earlier this month, Climate Change Minister Senator Sherry Rehman said that the World Bank has estimated a loss of $40 billion to Pakistan's economy as a result of the damage caused by recent cataclysmic floods.

A recent World Bank report said that Pakistan's poverty rate is expected to rise between 2.5 and 4% points as a direct consequence of the floods.

Loss of jobs, livestock, harvests, houses, and the closure of schools — as well as the spread of disease and rising food costs — threaten to put between 5.8 and 9 million in poverty, it said.

The World Bank said inflation in the country is set to stand at 23% for the financial year 2023.