Inflation is at its peak in Pakistan. The World Bank has commented on the economic system of Pakistan. The World Bank reported that 40 percent of Pakistan’s population lives below the poverty line. According to Pakistani media, the country’s military, political and business leaders now need to look at policy decisions.
World Bank presented proposal
The World Bank revealed that poverty in Pakistan has increased by 39.4 percent compared to last year. Due to poor economic conditions, more than 12.5 million people are trapped in poverty. Whereas, 95 million Pakistanis now live in poverty. The World Bank has given some suggestions to Pakistan. It said the tax-to-GDP ratio should be immediately increased by five percent and spending cuts of 2.7 percent of GDP.
Need for change in Pakistan
Pakistani economist Tobias Haq said that today’s situation in the country is very worrying. Pakistan is facing a serious economic and human development crisis. Policy changes are needed on many fronts in the country. According to media reports, several measures have been proposed to improve the revenue-to-GDP ratio by five percent by strengthening government revenues and increasing the tax burden on real estate and agriculture sectors.