Children during a class in Pakistan. Education is among the top funding priorities of the European Union in the country. Photo by: ECHO / CC BY-ND
The European Union sees Pakistan as a key development partner in a highly unstable region. But before Pakistan could positively influence its neighbors, the South Asian country has several problems to contend with. World Bank data shows that although growth in the country’s gross domestic product has been rising steadily since 2011, gains have been meager and the country’s annual growth rates remain below the regional average.
Gaps in energy infrastructure are seen as the largest impediment to growth, as electricity shortages continue to hamper economic activities. Meanwhile, weaknesses in government mechanisms, particularly in areas of taxation and resource mobilization, contribute to poor infrastructure development across multiple sectors. The transport sector remains marred by dilapidated rail and road infrastructure, while irrigation is insufficiently developed and ill-maintained. The same can be said about water storage and flood management infrastructure.