Cover Story
The World Bank and Pakistan
Pakistanis today are worse off than they were twenty years ago, and ironically, the World Bank is still somehow “providing relief” to the country. This begs us to ponder: what is the crux of the matter? And why has this noble intervention failed Pakistan?
Time and again, the World Bank (WB) has vowed to inject millions of dollars into Pakistan for the betterment of its economy. More profoundly, it has focused on the development and improvement of Karachi, which has the highest GDP and dominates the national market with a staggering 20% share. As per the WB’s website, its “current financing package of $838 million [for Karachi] is for investments in water supply, sewerage, public transport, public spaces, urban governance and solid waste management interventions.”
To undertake this hefty task, they have launched several projects in the city, such as the Karachi Neighbourhood Improvement Project (KNIP) in 2017, the Competitive and Liveable City of Karachi (CLICK) in 2019, Karachi Mobility Project (KMP) in 2019, Karachi Water and Sewerage Services Improvement Project (KWSSIP) in 2020 and more recently, Solid Waste Emergency and Efficiency Project (SWEEP) in 2021. Hence, there is no doubt that the WB has consistently injected money, introduced new projects, and begun aid reliefs within Pakistan’s economy. Albeit for a better cause, for the past 10 years, this surge of funds and projects has not worked in the country’s favour since inflation is at an all-time high, purchasing power has fallen, and GDP per capita has only decreased. Pakistanis today are worse off than they were twenty years ago, and ironically, the WB is still somehow “providing relief” to the country. This begs us to ponder: what is the crux of the matter? And why has this noble intervention failed Pakistan?
In the case of Karachi, we must evaluate a few of the WB’s projects to understand where the injury lies and how they may be able to fix it. KNIP’s intention to transform Karachi’s Saddar neighbourhood into a vibrant area that is accessible to the public and creates vendor culture seems an honourable gesture. However, in a city that is constantly suffering from severe flooding and poor infrastructure, this endeavour is hopeful, at best. As of now, KNIP is to be restructured for the third time since 2017 as the city is still recovering from the aftermath of COVID-19 and the inevitable monsoon season that causes havoc annually.
Since the damage to its infrastructure requires more attention, the “$20 million of Credit funds originally allocated to Component 1 were repurposed for labour-intensive emergency works, such as repairs and reconstruction of existing infrastructure.” The dates to begin the actual reconstruction of the neighbourhood keep getting pushed up, and the monetary funds that the WB allocated for this project are allotted to rebuild, hence resulting in a pushback that has probed the WB to introduce more policies, and the project is now being restructured.
Another recent case study is the SWEEP project by the WB. The aim of this project was to rebuild Karachi’s infrastructure after the massive monsoon flooding that resulted in the devastating destruction of entire neighbourhoods. As per Climate Homes News, SWEEP intended to improve “solid waste management, but two years into the five-year project, there is no sign of progress.” Only 3% of the 100-million-dollar budget was spent on the city, but on the WB’s website, the improvement is indicated as “satisfactory.” Therefore, realistically speaking, nothing has been done, and provincial documents indicate that $91,891 has been spent on “furniture.” The money trail in these projects is covered with bureaucratic jargon, and the author also indicates that an official from SWEEP claimed that $91,891 was too high of a cost to be spent on furniture, so the use of this money, too, is questionable.
Furthermore, the Climate Homes News article also criticizes WB’s previous CLICK project that caused flooding to worsen. The “green belts” created during CLICK to sustain flood water have created bottlenecks on main streets as they had not consulted a local urban planner, and this mishap has ruined more infrastructure than improved the situation. Hence, the projects that the WB has often carried out in Karachi have either stopped being funded, worsened the existing conditions, or never shown any real sustainable benefit to the residents.
Subsequently, how could an international financial giant such as the WB expect the government of Pakistan that is riddled with fraudulence, to distribute funds justly?
If we are to take Karachi as a case study, I believe there are three major reasons for these setbacks. Primarily, the most negligible factor is the WB’s consistent trust in the government of Pakistan; second to that is its short-sighted approach to the city’s current substructure and economic situation; and last is the WB’s mismanagement and absolute lack of accountability for the money trail. All three have brought the WB’s well-intended projects to the brink of failure, closure, or reconstruction.
Fundamentally, the WB lacks an understanding of the ground reality—they are unaware of the root cause that has, regardless of their injection of finances, caused the food, shelter, education, and health crisis within Pakistan to, if not worsen, not improve either. Any individual tracing the country’s political trend can identify, with certainty, that depending on the government for a fair allocation of finances is a recipe for disaster since the only consistency Pakistan’s government has provided its people is its inevitable corruption and dissolution.
Subsequently, how could an international financial giant such as the WB expect the government of Pakistan, which is riddled with fraudulence, to distribute funds justly? It is understandable to trust a governing body the first few times. However, when a government has proven to be a foreseeable fiasco where no prime minister has completed their full term and power is exchanged by force rather than the rule of law, it is the duty of the lenders to do their due diligence. The WB must seek other institutions or individuals for the fair distribution of monetary funds and demand accountability because a projected injection of approximately $800 million in a poverty-stricken country should create an impact somewhere, not just in the pockets of politicians.
Strange as it may be, it is a national truth that underprivileged Pakistani homes have been alleviated by the private sector tenfold more than any governing body. All charitable institutions, be it a hospital as renowned as Shaukat Khanum Hospital, an orphanage as remarkable as the Edhi Centre, or a food distribution organization as efficient as Saylani, are operated by private individuals and managed under strict supervision. Hence, one would most ardently propose that the WB privatize all its projects moving forward—this would not only ensure the rightful allocation of funds but also allow Pakistanis to be involved in the betterment of their nation. It is important to recognize the potential of the private sector and begin handing out projects to individuals and companies that have proven to be far more credible than our elected officials, whose “efforts” have certainly failed miserably.
Furthermore, to better operate their projects, the WB should consider approaching specific developmental projects in a linear manner instead of introducing new ventures within short time spans. I believe that if the focus and funds were allocated to one specific project, say SWEEP, with stringent measures, clear aims, and deadlines that had repercussions, the outcome would be quite different, if not vast. More so, if the projects were handled by trusted individuals or reputable companies, most of which already seem to exist in Karachi, these projects would be delivered much more efficiently. However, the WB has imprudently, and at best naïvely, trusted government individuals who have not only failed Pakistanis time and again but also Pakistan.
Nonetheless, one must appreciate the WB’s efforts to engage in aiding Pakistan during tough times since all these projects were initiated to improve the livelihoods of the residents who have suffered from severe flooding, extreme weather conditions, and poor infrastructure. Though the idealism of these projects seems to have surpassed the ground reality, a fair allocation of finances can only be done when credible individuals assume responsibility. Pakistan’s political climate has always been tumultuous, and its elected officials are ever-changing. Hence, if the WB truly necessitates change, it should steer its projects through the private sector and anchor its trust in the people of Pakistan rather than its governing bodies.
The writer holds an undergraduate degree in Literary Studies from Eugene Lang College of Liberal Arts at The New School and an MPhil in South Asian Studies from the University of Cambridge. She can be reached at fathimahsheikh@gmail.com
Jinnah was a bigger leader than Ataturk: Moot
Shaheen Afridi weds Shahid Afridi’s daughter Ansha
Wahab Riaz retires from international cricket
Nestlé Pakistan promotes nutritional awareness, sustainability education
Watch Shah Rukh Khan’s ‘Jawan’ on Netflix
Trudeau’s Allegations Upend India-Canada Ties
Toyota Pakistan and Bank of Punjab: Redefining Auto Finance
Michael Jackson’s moonwalk hat sells for $82,170
Pakistan to face highest inflation: ADB
Musk mulls charging all X users monthly fee
Naila Kiani, the first Pakistani woman to summit three peaks above 8,000m
Washington, Riyadh exploring mutual defence pact
India becomes the first nation to land near Moon’s south pole
‘Tree of Life’ on the verge of extinction
SC goes live as full court tackles controversial law
AlHuda CIBE Continues its Commitment to Islamic Finance FinTech Services
The Legend of Maula Jatt’ earns international nomination
Wonderfully well-written. Karachi needs help and WB cannot fool us