Islamabad: The World Bank has stated that Pakistan is linking electricity and gas subsidies with the Benazir Income Support Programme (BISP) as part of broader subsidy reforms aimed at improving targeting and reducing fiscal losses.
In its latest report on development in South Asia, the World Bank emphasised the need for tax reforms in Pakistan, calling for improvements in the tax system and an expansion of the tax base.
The report also suggested discouraging pollution as a means of increasing government revenue.
Commenting on water resources, the World Bank noted that groundwater levels across South Asia are declining rapidly. Pakistan, despite being among the most water-scarce countries in the world, continues to waste significant amounts of water.
The report highlighted that inefficient irrigation systems and outdated agricultural practices are major contributors to water wastage.
It pointed out that modern irrigation projects implemented in Punjab have resulted in water savings of up to 57 per cent, while crop yields increased by between 14 and 31 per cent.
The World Bank further stated that linking electricity and gas subsidies to BISP would help reduce misallocation, circular debt and financial losses.
It added that savings generated from subsidy reforms could instead be redirected towards social protection programmes.
