ISLAMABAD: The World Bank has announced that electricity and gas subsidies in Pakistan are being linked to the Benazir Income Support Program (BISP) as part of ongoing subsidy reforms.
In a report on South Asia’s development, the World Bank emphasized the need for improvements in Pakistan’s tax system, expanding the tax base, and discouraging pollution to increase revenue.
The report also highlighted water scarcity concerns in South Asia, noting that Pakistan is among the countries facing the most severe water shortages. Poor irrigation systems and inefficient agricultural practices were cited as major contributors to water loss.
According to the report, modern irrigation projects in Punjab have led to 57 percent water savings, while new agricultural initiatives increased crop yields by 14 to 31 percent.
On subsidies, the World Bank stated that linking electricity and gas subsidies to BISP would reduce misallocation, financial losses, and circular debt, while funds saved on fuel subsidies could be redirected toward social protection programs.
The report also mentioned the establishment of a Climate Risk Facility to support small businesses affected by floods and highlighted efforts to make BISP more effective through digital systems.
