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The World Bank’s policy document that defines strategy and thrust of its support for Pakistan’s economy has failed to catch the imagination of policymakers and the domestic private sector alike. Most government officials and trade representatives who were contacted said they had not read the bank document and were not aware of its strategy.
The 18th Constitutional Amendment and the 2010 National Finance Commission Award have altered the national economic framework with provinces vested with greater economic power and responsibilities. The bank strategy seems not to have discounted the change.
The World Bank office in Islamabad confirmed to Dawn over the telephone that the update of the country policy expected in September/October 2011, will accommodate changes in the economic framework on account of political, economic and administrative devolution.
Critics say the bank’s ‘Country partnership strategy 2010-13’ and its vision for addressing the economic challenge compromises Pakistan’s ability to realise its potential to provide a better life for its citizens.
On its strategy the report states, “The country partnership strategy (CPS) seeks to support Pakistan to address some of the major institutional, policy and financing constraints on its capacity to achieve and sustain high economic growth rates, to manage conflicts and to improve the social indicators and capacity of its population.”
It elaborates: The World Bank Group’s support to Pakistan will be organised around four pillars to improve (a) economic governance (b) human development and social protection (c) infrastructure to support growth and (d) security, and reducing the risk of conflict.
An offhand comment by Dr Rashid Amjad, Vice Chancellor Pakistan Institute of Development Economics, the only person among a few, in the official circles who was aware of the existence of such a document, was interesting.
“I read it a few months back. My impression was that the document was unfortunately based on the input of the ministry of finance alone. Besides the report does not sufficiently document the role of donors in driving the country in the direction that proved to be misguided and led to aggravation of dichotomies in the economy obstructing natural development of productive processes”, Dr Rashid said from Islamabad over telephone.
“The strategy has not identified key drivers of growth in Pakistan”, he added.
Dr Nadeem ul Haq, Chairman Planning Commission expressed his frustration over undue media focus on donors and their moves. He felt that the initiatives of indigenous economic agents towards economic policy making have been under reported. About his views on the said document he said: “I have not read it”.
“The multilateral donors have ample resources at their disposal to put together glossy publications. They, however, may not necessarily offer best solutions for problems being faced by a country”, he added.
“I do not understand why do we need to look up to donors for directions when planning the country future? Look across the border, in India they craft their strategies independently. We must also develop some spine and decide what is best for ourselves,” Dr Nadeem said.
Karman Mirza, CEO of energised Pakistan Business Council, a private economic think tank, expressed his inability to comment on a document that he has not read. On the bank’s policy not to engage in coal projects, the gentleman responded by saying, “We strongly support solution to the energy deficit challenge based on indigenous resources”.
Most trade bodies’ representatives contacted for their views on the four-year country partnership strategy of the World Bank had not seen the document and declined to comment on something that they have not studied.
“Beggars can’t be choosers”, said an expert hinting at the country’s dependence on donors. “As long you are knocking at donor’s door for support, you will have to heed their advice”.
“No one should have any illusion about the neutrality of multilateral donors. If the current diplomatic bitterness with the sole super power persist, the CPS or its relevance to Pakistan will deplete anyway as the bank will find some excuse to roll back/slash its programme for the country”, he concluded.
The bank says its strategy gives “special focus to the achievement of those outcomes that have the potential to be truly transformational.”
The bank document categorically states that it will only lend support where individual programmes are ready and the prospects for success are strong. It has hammered the need for selectivity. “The proposed CPS identifies sub-sectors and thematic areas where the bank will not lend. In energy sector,.., the bank will not engage in coal.
“The priority lending programme amounts to an estimated $3.7 billion through FY2012, an equivalent to about 60 per cent of a total potential lending envelop of up to $6 billion during the four year CSP period”.
