The World Bank said in a report that due to Pakistan’s deteriorating economic situation, the regional growth rate is also declining. Pakistan’s GDP growth rate is expected to improve to 3.2 percent in 2024, which is the previous…
The World Bank said in a report that due to Pakistan’s deteriorating economic situation, the regional growth rate is also declining. Pakistan’s GDP growth is expected to improve to 3.2 percent in 2024, down from the previous estimate of 4.2 percent. Despite facing severe food crisis in Pakistan, various parts of the country especially Khyber Pakhtunkhwa, Sindh and Balochistan states are struggling to find wheat in the market. Neighboring states also cut off supplies to them, leading to a situation where people were scrambling for scarce grains. Huge queues are being formed to buy subsidized wheat. There are stampedes going on. People are taking to the streets in large numbers and protesting. There are indications that this food crisis will worsen in the coming weeks.
On the other hand, warning of a global recession, the World Bank on January 13, 2023 predicted that Pakistan’s economic growth would further decline to two percent in the current year. Islam Khabar reported a two percentage point drop compared to the June 2022 estimate. Prime Minister Shehbaz Sharif said that the country will need 16.3 billion dollars in the next three years to recover from the economic situation.
Islam Khabar reports that Pakistan is the weakest economy in South Asia and will have to make a concerted effort to lift the country out of poverty. Amid natural disasters, food shortages and poverty, Pakistan has been in the news for economic depression. In July last year, massive floods occurred in Pakistan. Large scale agricultural lands were destroyed. The country’s forex reserves hit a new low of USD 4.6 billion, barely enough to pay foreign import bills for three weeks. Other countries have contributed 33 billion dollars to Pakistan. The world helped then. Better countries came forward with generous commitments of around USD 10 billion following the intervention of the UN Secretary-General. Islam Khabar reported that others, including Saudi Arabia and the UAE, earned four billion dollars this month. A country with some of the world’s most irrigated, fertile wheat-growing land is short of flour and has no money to import it. Islam Khabar reported that the price of flour has increased drastically.
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