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ISLAMABAD: A World Bank report has urged Pakistan to strengthen its water management and agricultural adaptation strategies, as the country ranks among the world&rsquo;s most vulnerable to inefficient water use under drying conditions.&nbsp;The report, titled &ldquo;Continental Drying: The Global Evidence on Drying Trends and Their Socioeconomic Implications,&rdquo; identifies Pakistan among the top four countries facing severe inefficiencies in agricultural water consumption, particularly in regions where freshwater resources are rapidly declining.&nbsp;According to the report, one-third of inefficient water use in irrigated agriculture occurs in areas already facing water scarcity, a challenge most pronounced in countries such as Pakistan, Algeria, and Tunisia.&nbsp;The study highlights that climate-related shocks, such as droughts and irregular rainfall, have historically led to major productivity and welfare losses in Pakistan. During the 2002 drought, agricultural productivity declined by 19.6%, with rainfall shortages accounting for nearly three-quarters of the loss. Despite farmers&#39; short-term adaptation efforts, overall agricultural output fell by 4.4%, leading to higher food prices and a 1.9% decline&nbsp;in national welfare.&nbsp;The World Bank notes that Pakistan, due to its large agricultural base and high water stress, remains critical to global food supply chains and climate stability. It recommends investing in water-saving technologies, crop diversification, and climate-resilient irrigation systems to safeguard livelihoods and boost productivity.&nbsp;The report also emphasizes regional cooperation on transboundary water management and calls for improved data monitoring and governance reforms to ensure equitable water distribution between sectors.&nbsp;The World Bank further highlights that efficient trade mechanisms played a key role in mitigating welfare losses during past droughts, suggesting that continued participation in regional and global food markets could help Pakistan buffer future climate shocks.

Climate & Environment

World Bank report says one-third of inefficient water use in irrigated agriculture occurs in areas already facing water scarcity, a challenge most pronounced in countries such as Pakistan, Algeria, and Tunisia.

Pakistan urged to boost water efficiency amid global drying trends

Syed Ahmed Raza

ISLAMABAD: The World Bank estimates an untapped potential of nearly US$60 billion for Pakistan&#39;s exports, according to its latest Pakistan Development Update report released this week. The report stated that some structural constraints obstructed Pakistan&rsquo;s export competitiveness and productivity. &quot;While the country has made progress in recent years, more reforms are needed to support export-led growth and improve resilience,&quot; it said.&nbsp;The World Bank said some tariffs, regulations, and limited access to trade finance and logistics continue to hamper export performance.&nbsp;The report acknowledged recent government initiatives, including the five-year National Tariff Policy (2026-2030), which aims to reduce the average tariff rate from 20.2 percent to 9.7 percent by 2030. However, it said tariff reforms alone would need to be complemented by steps such as a market-determined exchange rate, stronger trade finance systems, and improved digital and energy infrastructure to boost exports.&nbsp;&ldquo;The government has placed export growth at the center of its development agenda and has made important strides in tackling policy and structural barriers,&rdquo; said Anna Twum, co-author of the report. &ldquo;However, tariff reforms alone will not suffice and must be complemented by broader measures to ensure a market-determined exchange rate, strengthen trade finance, enhance trade facilitation, and expand access to export markets,&rdquo; she added. The report also underscored Pakistan&rsquo;s growing potential in digital services, noting that while digitally delivered exports now account for about 10 percent of total exports, Pakistan&rsquo;s global share remains low at just 0.1 percent. It suggested investing in broadband expansion, fiber-optic connectivity, and modern digital regulations to enhance export capacity in the IT and technology sectors.&nbsp;With the World Bank revising Pakistan&rsquo;s growth projection to 2.6 percent, the report said that unlocking export potential will be key to achieving sustainable, debt-free growth and ensuring long-term economic stability.

Economy

The bank highlights that high tariffs, regulatory barriers, and limited access to trade finance and logistics continue to weigh on export performance.

Pakistan has $60bn export potential, says World Bank

ISLAMABAD: Pakistan set to revive its dormant steel industry through a new initiative aimed at reducing steel imports, creating jobs, and promoting sustainable industrial growth, according to a statement released Tuesday by the Press Information Department (PID), a move projected to save up to $13 billion over the next decade. Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry unveiled the plan to establish a &ldquo;Sea to Steel Green Maritime Industrial Corridor&rdquo; at Port Qasim, which will link ship recycling, steel manufacturing, and green industrial practices into a single, sustainable ecosystem. &ldquo;This is not just about steel production,&rdquo; Chaudhry said. &ldquo;It&rsquo;s about creating a robust, self-sustaining maritime-industrial ecosystem that supports Pakistan&rsquo;s long-term growth and prosperity.&rdquo; Speaking at a high-level meeting with the Special Assistant to the Prime Minister on Industries and Production, Chaudhry outlined how the corridor will be developed in partnership with the Ministry of Industries and Production. The project, he said, is designed to modernize Pakistan&rsquo;s steel production while leveraging maritime resources for a greener and more self-reliant industrial future. Cutting steel imports by 20% Pakistan currently imports about $6 billion worth of steel each year, and demand is expected to rise by roughly 6% annually through 2035, according to the World Bank. The proposed Sea to Steel Green Corridor could reduce steel imports by as much as 20%, saving the country more than $13 billion over ten years. &ldquo;By harnessing our maritime potential and reviving dormant assets, we can reduce our dependence on costly imports,&rdquo; Chaudhry said. &ldquo;This project will conserve foreign exchange and strengthen domestic industry.&rdquo; The initiative is also expected to improve Pakistan&rsquo;s capacity to produce high-quality steel locally, helping to shrink the trade deficit and support industrial recovery. Reviving Port Qasim&rsquo;s idle berth A central part of the plan is the revival of the Iron Ore and Coal Berth (IOCB) at Port Qasim, which has been inactive since 2015. The government aims to convert the underused facility into a modern ship recycling and repair complex, complete with a floating dock capable of handling Aframax-class vessels. Chaudhry said that steel recovered from dismantled ships would be supplied either to Pakistan Steel Mills or reprocessed at a new facility near Port Qasim to produce high-grade industrial steel. &ldquo;Reviving the IOCB will breathe new life into our maritime infrastructure while supporting sustainable steel production,&rdquo; he said. Boosting maritime infrastructure The project is also designed to reduce the Pakistan National Shipping Corporation&rsquo;s (PNSC) dependence on foreign shipyards for vessel maintenance. Chaudhry said developing local repair capacity will lower costs and strengthen Pakistan&rsquo;s maritime infrastructure. The Special Assistant to the Prime Minister on Industries and Production welcomed the initiative, calling it a transformative step for Pakistan&rsquo;s economy. &ldquo;The project has the potential to transform Pakistan&rsquo;s industrial and maritime landscape,&rdquo; the special assistant said. &ldquo;Our combined efforts will drive sustainable development and create jobs for thousands of Pakistanis.&rdquo; The technical advisor at the maritime affairs ministry described the plan as a key component of Pakistan&rsquo;s Blue Economy vision. &ldquo;The Sea to Steel Green Corridor represents an integrated model of sustainable ship recycling, green steel production, and maritime industrialization,&rdquo; the advisor said. &ldquo;It will attract investment, generate employment, and encourage technology transfer.&rdquo; Once fully operational, the corridor is expected to revitalize idle assets and create thousands of skilled and semi-skilled jobs, particularly in the Port Qasim region. The meeting concluded with an agreement to begin developing the project&rsquo;s technical and financial frameworks, in coordination with national agencies and international partners. A formal presentation to key stakeholders is expected in the coming weeks, according to the PID statement.

The proposed Sea to Steel Green Corridor could reduce steel imports by as much as 20%, saving the country more than $13 billion over ten years.

Pakistan targets $13 billion savings with plan to revive steel sector

ISLAMABAD: Pakistan&#39;s Federal Minister for Finance Senator Muhammad Aurangzeb has departed for the United States to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank.&nbsp;According to the Ministry of Finance, the minister will represent Pakistan at the plenary sessions of both international financial institutions and hold meetings with senior officials of the IMF, World Bank, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA).&nbsp;During his visit, Senator Aurangzeb will hold a one-on-one meeting with World Bank President Ajay Banga and IMF Managing Director Kristalina Georgieva. He will also participate in sessions of the G24, the Middle East, North Africa and Pakistan (MENAP) platform, and the World Economic Forum (WEF).&nbsp;The finance minister will deliver a keynote address at the MENAP Forum and attend a regional roundtable organized by the World Bank on FBR&rsquo;s digital transformation. Tax authorities from various countries will also share their reform experiences at the event.&nbsp;His schedule includes meetings with senior officials of the White House, the US State Department, the Treasury Department, and the International Development Finance Corporation (DFC).&nbsp;The minister is also expected to meet his counterparts from China, the United Kingdom, Saudi Arabia, T&uuml;rkiye, and Azerbaijan.&nbsp;During the six-day visit, Senator Aurangzeb will participate in more than 65 events, including sessions with global investors, credit rating agencies, and think tanks, where he will highlight Pakistan&rsquo;s economic outlook and investment opportunities.

Finance Ministry says Aurangzeb will hold meetings with senior officials of the IMF, World Bank, International Finance Corporation, and Multilateral Investment Guarantee Agency.

Articles tagged with "World Bank"

Pakistan urged to boost water efficiency amid global drying trends

Pakistan has $60bn export potential, says World Bank

Pakistan targets $13 billion savings with plan to revive steel sector

Pakistan's finance minister departs for US to attend IMF, World Bank meetings