New Delhi: The world bank has accepted a financial package of 700 million dollars to be given to Pakistan to aid in dealing with its current economic crisis. Pakistan has been grappling with elevated inflation rates, increasing debt, dwindling foreign currency reserves and low economic growth.
The money, as it is stated in the World Bank, will be used to do reforms in the economy and in the provision of public services or safeguarding the poor and vulnerable citizens. The loan is meant to introduce short term stability in the Pakistani economy.
The government of Pakistan was happy with the decision and indicated that the money will assist the country in dealing with the current financial strain. Nevertheless, analysts caution that the simple loans are not enough to solve structural economic issues.
Pakistan requires radical reforms in its tax collection, pricing of energy, and expenditure by the government. The absence of such changes could lead to recurrent financial crises in the country.
The assistance provided by the World Bank is only a short-term solution, and the recovery will be achieved only due to the severe reforms and improved economic control.
