World Bank asks Pakistan to overhaul skewed trade pacts

The World Bank has asked Pakistan to improve its skewed preferential trade agreements with 10 bilateral partners, ensure a market-determined and flexible exchange rate and push deeper reforms to lower energy and other input costs to turbocharge over three decades of declining exports for sustainable economic growth. In a policy advice to the government, the bank observed that nearly all countries that have achieved rapid and durable growth have done so by tapping into global markets, but Pakistan has struggled to follow this path. “Exports have declined from 16 per cent of GDP in the 1990s to just around 10pc in 2024, with the export basket still concentrated in low-value textile and agricultural products,” it said, adding that economic upturns had been fuelled instead by debt and remittance-financed consumption, rather than export dynamism.