Lahore: The World Bank has stated that Pakistan’s economic model is unsustainable due to its reliance on loans.
Addressing a discussion on financial and governance reforms under the auspices of the Pakistan Institute of Development Economics, Regional Director of the World Bank for South Asia, Matthew Varghese said that Pakistan’s debt-to-GDP ratio has reached up to 80 percent with expenditure exceeding income resulting in an increase in domestic and external debts.
Matthew Varghese further stated that due to dependence on loans, Pakistan’s economic model is unsustainable and reforms are needed to address the economic crisis. By harnessing the potential of its young population, natural resources and strategic location, Pakistan can achieve annual growth of 7 to 8 percent in overall national production.
