World Bank projects over 10 million Pakistanis at risk of falling below poverty line
The World Bank has issued a warning that over 10 million Pakistanis are at risk of falling below the poverty line due to slow economic growth and high inflation rates. The bi-annual report by the World Bank painted a grim picture of Pakistan’s economy, indicating a failure to meet major macroeconomic targets.
The report highlighted that Pakistan is expected to miss its primary budget target, keeping the country in deficit for at least three more years. Despite some economic recovery, poverty alleviation efforts are deemed insufficient, with economic growth projected to stagnate at 1.8 per cent, maintaining a poverty rate of around 40 percent.
Sayed Murtaza Muzaffari, the lead author of the report, mentioned that approximately 98 million Pakistanis are already struggling with poverty, with 10 million individuals at risk of slipping into poverty. The rise in inflation, high transportation costs, and food security challenges are raising concerns about increased out-of-school children and delayed medical treatments.
The World Bank report also highlighted the potential social discontent and negative welfare impacts due to chronic inflation without substantial growth. Pakistan’s economic growth is expected to be at only 1.8 per cent for the current fiscal year, falling short of the official target of 3.5 per cent, with growth in the next fiscal year projected at 2.3 per cent, lower than the population growth rate.
The subdued economic recovery is attributed to right monetary and fiscal policies, import management measures to preserve foreign reserves, and weak economic activity amid low confidence. With indicators on circular debts, inflation, and GDP growth painting a bleak picture, Pakistan’s economic outlook seems weak for the next few years, offering little hope to its struggling population.
