240m Pakistanis yet to benefit from dividends: World Bank

ISLAMABAD: On the eve of formal launching of $20 billion loan for Pakistan under 10 years Country Partnership Framework (CPF), World Bank’s Vice President for South Asia Martin Raiser said that Islamabad would have to pursue a challenging journey with persistence to avert economic shocks.

On the issue of political instability, WB’s County Director Najy Benhassine said that the international lender placed midcourse strategy and six priority areas including stunting, learning poverty, climate resistance, public finance, and social sector were identified with broader consultations including with provinces, political parties, academia, civil society and other segments.

However, the World Bank (WB) unveiled its commitment for updating the GDP growth projection for five years period in order to synergise and align with ‘Uraan Pakistan’ programme but the bank did not reply clearly on rising debt burden, poverty and unemployment in next 10 years period when Islamabad will have drawn $40 billion from the World Bank Group (WBG) including WB, IFC and MIGA.

“Although, there would be significant assistance ranging up to $40 billion coming from the WBG but it would be much less than the actual requirement of the country. For instance, the climate resilience alone requires $250 to $350 billion, so the pooling up resources from other donor partners will be required,” it was the crux of discussions delivered by the WB’s country director and IFC Country Manager Zeeshan Sheikh on the occasion of launching 10 years CPF here on Thursday.

Economic Affairs Division Secretary Kazim Niaz hoped that all donors would evolve synergies to achieve the government’s set priorities.

The CPF for 2026 to 2035 states that Pakistan’s fast-growing population of over 240 million is yet to benefit from what could be a high demographic dividend. Short periods of growth have benefited upper income groups, with the majority increasingly left behind.

With 3.4 births per woman in 2022—the highest fertility rate in South Asia—the number of youths entering the labor market each year is expanding at a faster rate than the total population, resulting in high youth disenchantment.