Pakistan among world’s most water-stressed countries, warns World Bank

The World Bank has released a report on development trends in South Asia, placing strong emphasis on the need for tax reforms and an expanded tax base in Pakistan.

The report recommends discouraging pollution as a means of increasing government revenue, while highlighting that Pakistan is among the most water-stressed countries in the world.

According to the World Bank, inefficient irrigation systems and ineffective agricultural practices are leading to significant water losses.

It noted that a modern irrigation project in Punjab resulted in water savings of 57 per cent, while advanced agricultural initiatives led to a 14 to 31 per cent increase in crop yields.

The report also warned that groundwater levels across South Asia are declining rapidly.

The World Bank stated that electricity and gas subsidies in Pakistan are being linked to the Benazir Income Support Programme (BISP).

It added that subsidy reforms would help reduce misallocation, financial losses and circular debt. Funds currently spent on fuel subsidies could instead be redirected towards social protection programmes.

The report further revealed that a Climate Risk Facility is being established for small businesses affected by floods.

It also highlighted that BISP has been made more effective through digital systems, providing financial assistance to 12 million families during the Covid-19 pandemic.

According to the World Bank, self-registration facilities for aid programmes are available in both Pakistan and the Maldives.