Vested interests may spur post-election policy reversals, World Bank fears
The World Bank fears that following the upcoming elections, strong and organised vested interests may spur a number of potential reversals on critical policy reforms — committed to multilateral lenders — posing ‘high’ macroeconomic risks to Pakistan. The possible reversals include the rationalisation of gas and electricity subsidies, lower trade tariffs and better property tax realisation. “Stakeholder risks are high due to strong and organised vested interests, potentially advocating to reverse critical reforms, particularly trade tariff reforms, increases to property taxation and energy sector reforms,” said the Washington-based lending agency in an assessment of its recently approved $350 million loan under second Resilient Institutions for Sustainable Economy (Rise-II). The bank, however, expressed willingness to provide further support in tandem with the International Monetary Fund (IMF) under another medium-term loan programme to be signed by the newly elected government, subject to the successful progression of the ongoing reform measures, for even deeper and broader reforms.