ISLAMABAD: South Asia should spend as much as $2.5 trillion on infrastructure by 2020 to bring its power grids, roads and water supplies up to the standard required to serve its growing population, said a World Bank report on Wednesday.
“If South Asia hopes to meet its development goals and not risk slowing down — or even halting — growth, poverty alleviation and shared prosperity… it is essential to make closing its huge infrastructure gap a priority,” the report said in probably the first analysis of the region’s infrastructure needs.
The report, entitled “Reducing poverty by closing South Asia’s infrastructure gap”, says that “infrastructure deficiencies in South Asia are enormous, and a mix of investment in infrastructure stock and implementing supportive reforms will enable the region to close its infrastructure gap”.
Pakistan should invest $165 billion over ten years in improving infrastructure in transport, electricity, water and sanitation, solid waste, telecom and irrigation sectors, according to the report.
For the required investment in electricity sector of up to $96bn, Pakistan should generate funds through government-private sector partnership, the report said.
The average share of Pakistan in the total infrastructural investment in South Asia is only 12 per cent compared to 79 per cent by India, the report says.