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Pakistan

International Monetary Fund. Middle East and Central Asia Dept.

Published: 2017-07-13

Total Pages: 71


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This Selected Issues paper provides an overview of social safety nets (SSNs) in Pakistan and uses a frontier analysis approach to assess their efficiency in reducing poverty and inequality. SSNs in Pakistan were significantly strengthened over time but remain small against regional and emerging markets’ averages. The analysis suggests that stepping up public expenditure in SSNs is needed to alleviate still high poverty and inequality. To this end, finalizing the update of the Benazir Income Support Program beneficiaries’ database, broadening its coverage, and stepping up educational transfers is key. In parallel, continuing the energy subsidies reform would create fiscal space to strengthen SSNs and priority social spending.

Pakistan

International Monetary Fund. Middle East and Central Asia Dept.

Published: 2023-07-18

Total Pages: 120


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Pakistan’s economy was buffeted by significant shocks over the past year. The severe impact of the floods, the commodity shock from the war in Ukraine, and the tightening of external and domestic financing conditions together with policy backsliding aggravated economic conditions and halted the post-pandemic recovery. Growth stalled, inflation surged, international reserves dropped to very low levels, and fiscal and external pressures have become acute. Despite some efforts in FY23H2, the difficult economic, social, and political environment as well as insufficient external financing, have prevented sufficient progress in completing the Extended Fund Facility (EFF) which expired on June 30. To address the challenges and sustain macroeconomic stability, the authorities have renewed their policy efforts, and are seeking support under a new Stand-By Arrangement.
Pakistan showed good macroeconomic performance over the past years. Executive Directors welcomed the program, which aimed at strengthening the balance-of-payments position, rebuilding official reserves, and reducing public sector indebtedness. They emphasized the need for revenue mobilization, improving investor confidence, poverty alleviation, good governance, tightening fiscal and monetary policies, and improvement in the collection, quality of data, and transparency. They approved financial support for the country's economic developments under the Stand-By Arrangement.
This book analyzes the objectives and content of the World Bank's assistance program during the period 1994-2003, the economic and social development outcomes in Pakistan, and the contributions of the Bank to development outcomes.
"This Policy Analysis previews the case for more decisive US economic engagement of Pakistan and suggests that a US-Pakistan FTA could reinforce existing reforms and push the envelope in economic areas where Pakistan (and South Asia more generally) have lagged. In keeping with the Institute's extensive research agenda on prospective US FTAs, we present a detailed analysis of the costs and benefits of a US-Pakistan FTA for the signatory countries, for regional integration, and for the world trading system."--Preface.
The extent of urban air pollution in Pakistan—South Asia's most urbanized country—is among the world’s most severe, significantly damaging human health, quality of life, and the economy and environment of Pakistan. The harm from Pakistan's urban air pollution is among the highest in South Asia, exceeding several high-profile causes of mortality and morbidity in Pakistan. Improved air quality management (AQM) in Pakistan can have notable economic and health benefits. For example, the estimated health benefits per dollar spent on cleaner diesel are approximately US $1–1.5 for light-duty diesel vehicles and US $1.5–2.4 for large buses and trucks. This report advocates that Pakistan allocate resources to AQM, because its air quality is severely affecting millions of Pakistanis, and because experiences around the world indicate that interventions can significantly improve air quality. This report details a broad spectrum of research on Pakistan’s AQM challenges, and identifies a comprehensive set of steps to improve air quality. The research presented here underpins the conclusions that addressing Pakistan's urban air pollution requires coordinated interventions to strengthen AQM, build agencies' institutional capacity, bolster AQM's legal and regulatory framework, implement policy reforms and investments, and fill knowledge gaps. However, Pakistan's policy makers face major obstacles, including limited financial, human, and technical resources, and can pursue only a few AQM interventions at the same time. In the short term, Pakistan's AQM should give highest priority to reducing pollutants linked to high morbidity and mortality: PM2.5 (and precursors like SOx and NOx) from mobile sources. A second-level short-term priority could be PM2.5, SOx, and emissions of toxic metals from stationary sources. An important medium-term priority should be mass transportation in major cities, controlling traffic, and restricting private cars during high-pollution episodes. A long-term priority could be taxing hydrocarbons, based on their contribution to greenhouse gases.
Oilseeds in Pakistan characterizes a policy failure as the production of oilseeds as well as edible oil has been on the decline despite various initiatives. The country has been augmenting growing demand-supply gap through imports since early 1970. The domestic production contributes only 13-15 percent of the total consumption while 85-87 percent is met through imports. Per capita consumption of vegetable oil has risen from 5.31 kg in 1973-74 to 20 kg in 2018 and is likely to move to 22 kg by 2028 projecting total consumption to 6.5 million tons by 2028 against current local production of less than 0.5 million tons, widening the demand-supply gap further. The import bill for these products has reached over US$4 billion in FY2021 which is straining the balance of trade and the balance of payment. With global uncertainties and challenges facing the oilseeds sector including the sharp price fluctuations and market instability and favorable tariffs for imports, the import bill is likely to move upward underscoring the need for well thought out policy and planning.
Contents: (1) Recent Legislative Action; (2) Intro.: Where the Congressional Debate Will Likely Focus; Evolution and Purpose of Legislation; ROZs as a Trade Preference Program; Economic, Trade and Investment Context for Legislation; (3) Major Elements of H.R. 1318 and S. 496: Permissible Locations for ROZs; Articles Eligible for Duty-Free Treatment under the ROZ Program and Rules of Origin; Tech. Assistance, Compliance Assessment, and Remediation Program; Responsibilities of Labor Officials; Presidential Responsibilities; Limitations on Providing Duty-Free Treatment; Termination of Benefits; (4) Potential Issues: Tariff Line Issues; Issues Related to Geographic Areas Permitted for ROZ Location; Labor-Related Issues; (5) Outlook. Illustrations.