ISLAMABAD: The World Bank has asked Pakistan to improve its tax system and broaden the tax base in order to strengthen revenue generation, according to a new report on development in South Asia.
The report stated that Pakistan is among the most water-stressed countries in the world, with rapidly depleting groundwater levels caused by inefficient irrigation systems and outdated agricultural practices.
The World Bank noted that a modern irrigation project in Punjab resulted in water savings of up to 57 percent, while improved agricultural techniques increased crop yields by 14 to 31 percent.
To enhance government revenues, the World Bank also recommended discouraging pollution through fiscal measures.
It stated that reforms in electricity and gas subsidies are being linked with the Benazir Income Support Programme (BISP), which is expected to reduce misallocation, financial losses, and circular debt. The Bank added that funds currently spent on fuel subsidies could instead be redirected toward social protection programs.
According to the report, a Climate Risk Facility is being established to support small businesses affected by floods. The World Bank further noted that BISP has been strengthened through digital systems, enabling more efficient delivery of assistance.
During the COVID-19 pandemic, financial support was provided to 12 million families through BISP, while Pakistan and Maldives now offer self-registration facilities for aid programs.
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