Islamabad
A cautionary note from the World Bank suggests that over 10 million Pakistanis might be pushed below the poverty line due to sluggish economic growth and soaring inflation, expected to reach 26% for this fiscal year.
The grim findings come from the World Bank’s latest report, ‘Pakistan Development Outlook’, painting a concerning economic outlook for the nation. The report indicates a likely failure to meet key macroeconomic targets, with Pakistan anticipated to fall short of its primary budget goal for the next three years, keeping Islamabad in deficit.
Economic growth is forecasted to stagnate at a mere 1.8%, keeping the poverty rate steady around 40%, with an additional 10 million individuals at risk of slipping into poverty. The report also warns of potential repercussions such as a rise in out-of-school children and delayed medical treatments due to inflation and soaring living costs, with food security remaining a significant challenge.
In the medium term, poverty reduction efforts are expected to stall due to weak growth, low real labor incomes, and persistently high inflation. Growth projections for Islamabad stand at 1.8% for the current fiscal year, falling short of the official target of 3.5%, with the next fiscal year also expected to see sluggish growth at only 2.3%, below the population growth rate of 2.6%.
