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Damning World Bank report says 30% Pakistanis will slip into poverty & food insecurity will triple

Ahsan Zafeer Written by Ahsan Zafeer · 58 sec read>

A damning World Bank report has revealed that over 30% of Pakistan’s rural population is slipping into poverty, while unemployment is also rising. The report also presents a bleak outlook on the country’s economy and says that
economic activity in Pakistan will go down with the revival of the International Monetary Fund (IMF) loan program, with economic growth projected at just 1.3% for the current fiscal year. The World Bank also said that the percentage of food insecure population had tripled from 3% to 10%.

“Pakistan’s economy has been growing slowly over the past two decades. Annual per capita growth has averaged only 2%, less than half of the South Asia average, partly due to inconsistent macroeconomic policies and an under-reliance on investment and exports to drive economic growth.”, the report said.

The World Bank’s detailed report on Pakistan should set off alarm bells in the government’s sphere, as the report shows signs of impending doom for Pakistan’s social and economic landscape.

“The economic activity is projected to be dampened in the short term with the resumption of the IMF stabilization program, expected to resume as the economy regains its footing,” the report.

However, the government remains in denial and has contrasting claims to present.

 

The report also noted that electricity and gas tariffs steadily increased from July 2019 to January 2020. A 168% hike in gas tariffs was approved at the beginning of FY20 to pass on energy sector arrears to consumers. These tariff hikes were a critical contributory factor to the high headline inflation in FY20, it added.

Read More: IMF approves $500 million tranche for Pakistan after noting “satisfactory progress”

Written by Ahsan Zafeer
A digital marketing professional specializing in content-based functional areas - Ahsan Zafeer is driven by a never-ending passion for developing, nurturing, and strategizing key content aspects. He writes extensively on tech, digital marketing, SEO, cybersecurity, and emerging technologies. He also serves as a digital marketing strategist and freelance consultant for globally oriented organizations. He tweets @AhsanZafeer Profile