Pakistan's health, education spending insufficient to combat poverty: IMF

September 30, 2024 (MLN): Pakistan's spending on health and education has been insufficient to tackle persistent poverty, and inadequate infrastructure investment has limited economic potential and left Pakistan vulnerable to the impact of climate change.

This was stated by the International Monetary Fund (IMF), in a detailed report released after approving Pakistan’s request for a $7 billion, 37-month Extended Fund Facility (EFF).

Without a concerted effort for adjustment and reform, Pakistan risks falling further behind its peers, the global lender added.

The report further highlighted Pakistan's difficult business environment, weak governance, and an outsized role of the state hinder investment, which remains very low compared to peers.

Additionally, the narrow tax base undermines tax fairness, fiscal sustainability, and the ability to meet the country’s significant social and development spending needs.

Due to the progress and stability achieved under the 9-month 2023 Stand-By Arrangement (SBA), the authorities are embarking on renewed efforts to address these challenges, build resilience, and enable sustainable growth.

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