Pakistan's living standard lags behind peer countries in Asia: IMF

The International Monetary Fund (IMF) has expressed the need for urgent reforms in Pakistan, as it believes that the country has failed to provide a good living standard to its citizens compared to other countries in the region.

In a report issued on October 10, the global fund lenders quoted major factors that have pushed Pakistan behind its peers in the region.

"Pakistan has been falling behind its peers in recent decades in terms of income per capita, competitiveness, and export performance. From 2000 to 2022, Pakistan’s GDP per capita grew at an average annual rate of only 1.9%," the report stated.

In contrast, peer countries achieved more than twice the said rate. According to the report, Bangladesh's average growth was 4.9%, India's 4.9%, Vietnam's 5%, and China grew its GDP by 7.5%.

Acknowledging the underlying challenges that continuously hold Pakistan back from efficient performance, the IMF reviewed the last ten years of its sponsored program and recommended enhanced ownership as a key lesson learned.

"Without a concerted adjustment and reform effort, Pakistan risks falling further behind its peers."

The report stated that the country had begun the programs against the backdrop of economic stability that had derailed due to unprecedented external threats such as COVID-19, devastating floods, fiscal vulnerabilities, and external challenges.

According to the IMF, the programs helped Pakistan implement strong policies, but this progress was not sustained, leading to the need for successor programs.