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Pakistan

Five myths about water in Pakistan

William Young's picture



Persistent myths, which can misguide policy, are barriers to improving water security for the people of Pakistan. Here are five:

First, this problem of water security is often presented as one of water scarcity. But Pakistan is a water-rich country – only 35 countries have more renewable water. It is true that measured for each person, Pakistan is approaching a widely recognized scarcity level of 1000 cubic meters each year. But there are 32 countries that have less water for each person and most of these countries are much wealthier and use less water for each person. Pakistan needs to shift its focus from scarcity to managing water demand and producing more from each drop of water. It needs to make water allocation more efficient and fair, and offer incentives that reflect how scarce water is to encourage wise use.

Measuring South Asia’s economy from outer space

Martin Rama's picture
New technologies offer an opportunity to strengthen economic measurement. Evening luminosity observed from satellites has been shown to be a good proxy for economic activity.
New technologies offer an opportunity to strengthen economic measurement. Evening luminosity observed from satellites has been shown to be a good proxy for economic activity.
Economic growth is a key concern for economists, political leaders, and the broader population.

But how confident are we that the available data on economic activity paints an accurate picture of a country’s performance?

Measuring Gross Domestic Product (GDP), the most standard measure of economic activity, is especially challenging in developing countries, where the informal sector is large and institutional constraints can be severe.

In addition, many countries only provide GDP measures annually and at the national level. Not surprisingly, GDP growth estimates are often met with skepticism.
 
New technologies offer an opportunity to strengthen economic measurement. Evening luminosity observed from satellites has been shown to be a good proxy for economic activity.

As shown in Figure 1, there is a strong correlation between nightlight intensity and GDP levels in South Asia: the higher the nightlight intensity on the horizontal axis, the stronger the economic activity on the vertical axis.
Figure 1 Nightlight intensity increases with economic activity
Figure 1 Nightlight intensity increases with economic activity

However, measuring nightlight is challenging and comes with a few caveats. Clouds, moonlight, and radiance from the sun can affect measurement accuracy, which then requires filtering and standardizing.

On the other hand, nighlight data has a lot advantages like being available in high-frequency and with a very high spatial resolution. In the latest edition of South Asia Economic Focus, we use variations in nightlight intensity to analyze economic trends and illustrate how this data can help predict GDP over time and across space.

Fresh thinking on economic cooperation in South Asia

Nikita Singla's picture
 Aamir Khan/ Pakistan, Sreerupa Sengupta/ India, Sanjay Kathuria/ World Bank, Mahfuz Kabir & Surendar Singh/ Bangladesh) Photo By: Marcio De La Cruz/ World Bank
Young Economists sharing the stage with Sanjay Kathuria, Lead Economist and Coordinator, Regional Integration (Left to Right: Aamir Khan/ Pakistan, Sreerupa Sengupta/ India, Sanjay Kathuria/ World Bank, Mahfuz Kabir/Bangladesh & Surendar Singh/ India). Photo by: Marcio De La Cruz/ World Bank


That regional cooperation in South Asia is lower than optimal levels is well accepted. It is usually ascribed to – the asymmetry in size between India and the rest, conflicts and historical political tensions, a trust deficit, limited transport connectivity, and onerous logistics, among many other factors.

Deepening regional integration requires sufficient policy-relevant analytical work on the costs and benefits of both intra-regional trade and investment. An effective cross-border network of young professionals can contribute to fresh thinking on emerging economic cooperation issues in South Asia.

Against this background, the World Bank Group sponsored a competitive request for proposals.  Awardees from Bangladesh, India, and Pakistan, after being actively mentored by seasoned World Bank staff over a period of two years, convened in Washington DC to present their new and exciting research. Research areas included regional value chains, production sharing and the impact assessment of alternative preferential trade agreements in the region.

Young Economists offer fresh thoughts on economic cooperation in South Asia

Mahfuz Kabir, Acting Research Director, Bangladesh Institute of International and Strategic Studies and Surendar Singh, Policy Analyst, Consumer Unity Trust Society (CUTS International) presented their research: Of Streams and Tides, India-Bangladesh Value Chains in Textiles and Clothing (T&C). They focus on how to tackle three main trade barriers for T&C: a) high tariffs for selected, but important goods for the industries of both countries; b) inefficient customs procedures and c) divergent criteria for rules of origin classification.

Sreerupa Sengupta, Ph.D. Scholar at Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi discussed Trade Cooperation and Production Sharing in South Asia – An Indian Perspective. Reviewing the pattern of Indian exports and imports in the last twenty years, her research focuses on comparing the Global Value Chain (GVC) participation rate of India with East Asian and ASEAN economies. Barriers to higher participation include a) lack of openness in the FDI sector; b) lack of adequate port infrastructure, and long port dwell times; and c) lack of Mutual Recognition Agreements (MRAs).

Aamir Khan, Assistant Professor, Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad presented his work on Economy Wide Impact of Regional Integration in South Asia - Options for Pakistan. His research analyzes the reasons for Pakistan not being able to take full advantage of its Free Trade Agreement (FTA) with China, and finds that the granting of ASEAN-type concessions to Pakistan in its FTA with China would be more beneficial than the current FTA arrangement. The work also draws lessons for FTAs that are currently being negotiated by South Asian countries.

World Bank guarantees help Pakistan get cheaper, longer term loans from international market

Enrique Blanco Armas's picture
Dasu
Photo Credit: Pakistan's Water and Power Development Authority (WAPDA)

Compared to their investment needs, developing countries have very limited concessional financing available to them. International commercial banks are constrained in terms of the size and tenors of credits to Emerging Markets and Developing Economies. A key challenge therefore, is to channel large savings and capital into productive investments in developing countries, partly by ‘de-risking’ investments and borrowings.  Pakistan is at the forefront of these efforts, recently making use of two World Bank guarantees to access over 1 billion US dollars in two international commercial loan financings.

A $420 million IBRD Policy Based Guarantee (PBG) was approved by the World Bank Board alongside a $500 million IDA credit in June 2016. The PBG guarantee partially takes over the risk of a commercial bank’s loan to a government. The PBG and the IDA credit supported a program of reforms including the adoption of a new and more inclusive poverty line, efforts to broaden the tax base, enhanced transparency of State Owned Enterprises, improved debt management and a significant overhaul of the regulatory framework of the financial sector.  Improved access to international financing through the PBG will reduce the government’s dependence on domestic financing and free up resources for private sector investment. The guarantee also signals the World Bank’s confidence in Pakistan’s economic reforms program – a signal that is particularly important after the successful completion of the IMF program. The government used the US$420 million PBG to partly guarantee a 10-year US$700 million loan, extending tenor significantly and achieving cost savings.  

Pakistan bridges the gender divide by embracing a digital economy

Priya Chopra's picture
Registration at the Digital Youth Summit. DYS is an age and gender-inclusive diversified digital platform.
Photo Credit: Digital Youth Summit


Standing in line to sign up for the Digital Youth Summit in Peshawar this May, I struck up a conversation with a young woman from Peshawar. I was pleasantly surprised by her level of interest and eagerness in participating at the tech conference.  She was keen to develop an app that would allow her to sell home-based food products at a national level.  She had already gathered a group of friends who would work with her on different aspects of task planning and implementation.  Her enthusiasm was palpable and infectious.  Born and raised in South Asia, I understand the constraints local women face in largely male dominated societies.  I was therefore heartened by the large turn-out of women queuing to enroll for the workshops.  

Six innovations from the Digital Youth Summit that inspired me

Joe Qian's picture
What do speakers say about the Digital Youth Summit?
What foreign speakers say about DYS17!

Foreign delegates to Digital Youth Summit 2017 reflect on their experiences, and the bright minds of youth in Khyber Pakhtunkhwa. Many thanks to all the foreign delegates for visiting Peshawar from May 5-7, 2017! #DYS17 #KPITB #KPGoesTech #KPWentTech Imran Khan (official)Shahram Khan Tarakai Official Khyber Pakhtunkhwa Information Technology Board - KPITB World Bank South Asia Jazz USAID Pakistan UNDP Pakistan Gloria Jean's Coffees Pakistan Anna O'Donnell Sam Bretzfield Iliana Montauk Justin Wong Alexander Ferguson Max Krueger Nicola Magri

Posted by Digital Youth Summit on Thursday, May 18, 2017

Entrepreneurs and technologists from Pakistan and around the world converged last week at the Digital Youth Summit (DYS) in Peshawar to share their knowledge, inspire local talent, and bring digital investments.

Over four days, 4,000 attendees, some as young as age 10, interacted with industry leaders, engaged in technology demonstrations, and benefitted from hands-on training. Everyone learnt a lot about digital entrepreneurship and was inspired by many cutting-edge innovations.

Here are six of them that struck a high note with me:
Most sessions at #DYS17 were livestreamed by Jazz xlr8 and OurKPK. Photo Credit: Joe Qian/World Bank
  1. Sessions on Facebook Live. Did you miss the summit, want to learn more about digital entrepreneurship, or simply want to relive highlights of DYS? Jazz xlr8 and OurKPK livestreamed many sessions at DYS. Inspired to start or grow your own business after watching the sessions? There are also resources to support you at the National Incubation Center and Khyber Pakhtunkhwa’s Youth Employment Program!
     
    Travel Across Pakistan
     
  2. Travel Startups that made me want to travel across Pakistan. Let’s face it, I have a serious case of wanderlust and few things make me happier than going to new places, connecting with people, and gaining insights and perspectives I was unaware of before. For people outside of Pakistan may know of it as a country full of beauty and tourism potential. However, two of the winners of DYS’s Startup Cup in which budding companies presented their products and services to prospective investors changed my perspectives. Watch these two videos made by travel platform Find My Adventure and home-sharing company Qayyam and tell me if they also inspire you to travel across Pakistan!

Three key policies to boost performance of South Asia’s ports

Matias Herrera Dappe's picture



In a previous blog
we related how South Asia as a whole had improved the performance of its container ports since 2000 but had still struggled to catch up with other developed and developing regions. But within that picture, some ports did better than others. 

For example, Colombo in Sri Lanka, the fast-expanding Mundra and Jawaharlal Nehru Port in India and Port Qasim in Pakistan all improved the use of their facilities in the first decade of this century.  India’s Mumbai and Tuticorin were among those that fell behind. Colombo also improved its operational performance by almost halving the share of idle time at berth, while Chittagong (Bangladesh) and Kolkata (India) had the longest vessel turnaround times in the region.

Knowing how specific ports perform and the characteristics of ports that perform well and those of ports that perform poorly helps policymakers design interventions to support underperforming ports.

In the report “Competitiveness of South Asia’s Container Ports” we identified three interrelated policies to improve the performance of the container ports, a key element in one of the world’s fast-growing regions: increasing private participation in ports, strengthening governance of port authorities and fostering competition between and within ports: 

Pakistan youth can be the future they want to see

Alexander Ferguson's picture



The first day of the Digital Youth Summit in Peshawar saw corridors and rooms crowded with entrepreneurs and digital gurus from across the world looking to map out Pakistan’s digital future.

These young and enthusiastic innovators are helping to redefine the province of Khyber Pakhtunkhwa (KP) as an emerging technology hub, and providing substantive skills and resources for Pakistan’s youth to take advantage of digital opportunities. At the summit – sponsored by the World Bank with the Khyber Pakhtunkhwa IT Board and many other partners -- these students, entrepreneurs, enthusiastic young women and men are accessing trainings, announcements, and various forms of support to unlock new possibilities to realizing their potential.

The market for digital entrepreneurship is a multi-billion-dollar industry, growing at a rapid rate and is thirsty for young talent. These opportunities represent a shift in how we think of development—bringing the creativity and passion of tech-savvy young innovators to the forefront of social and economic change. The youth of Pakistani are well placed to be in the driver’s seat of this vibrant future.

Why I am excited about attending the Digital Youth Summit, and why you should attend too!

Nicola Magri's picture
Come to the Digital Youth Summit!

Why am I excited? Because it’s simply awesome! And it is a crucial get together for all those interested in tech, freelancing and entrepreneurship, featuring national and international experts (you read more about the speakers here).

Let me explain. This is the 3nd time that I am writing a blog post about the Digital Youth Summit (taking place this year on May 5-7, 2017 in Peshawar, Pakistan) and, once again, I face the big challenge of trying to make the reader feel at least some of the energy and incredible vibe that characterize this amazing event (you can find my 1st and 2nd posts here and here).

The Digital Youth Summit is a very unique get together. Over its two previous editions, it brought together national, international experts and hundreds of the most passionate and creative youth that Pakistan has to offer, demonstrating to the world that the city of Peshawar has now become the go-to spot for tech experts, freelancers and entrepreneurs from all over the country. The city’s tech ecosystem, once very limited, is now characterized by multiple initiatives and gathering spots for youth, including, for instance, The Nerd Camp, Peshawar 2.0 and Cluster, adding to the projects of Code for Pakistan and Empower Pakistan, both supported by the World Bank.
 
The 2017 edition, that will take place from May 5-7, is about to break new records.

Why is the Digital Youth Summit so important for Pakistan? Because Pakistan has almost 200 million people (the province of Khyber Pakhtunkhwa alone, whose capital is Peshawar, has 30 million- equivalent to the size of Greece, Belgium and Sweden, combined) and according to the Pakistani Bureau of Statistics (2013 data), almost 75% of the Pakistani population is below age 35; reaching 76.5% in the case of Khyber Pakhtunkhwa.

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