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Pakistan GDP: Projecting a massive 0.4 per cent drop in Pakistan’s GDP growth, the World Bank has warned that the country could explode into a major macroeconomic crisis. The World Bank has also said that due to the non-completion of the IMF program, failure to get funding from major bilateral partners and political instability, Pakistan may be trapped in a huge economic crisis.
The World Bank said, “The country’s outlook is subject to key downside risks, which, if they materialize, could lead to a macroeconomic crisis. Non-completion of the IMF program and expected rollovers, refinancing and Failure to secure new financing increases risk.”
ADB also gave an estimate of 0.6 percent growth rate for Pakistan.
According to the report of The News, the Asian Development Bank (ADB) has said in a separate report that Pakistan may have a very low GDP growth rate of 0.6 percent in the financial year 2023-24. Here the inflation rate of up to 27.5 percent and the ongoing foreign exchange crisis in Pakistan have been estimated.
The poverty rate in Pakistan is also estimated to increase wildly.
According to The News report, poverty measured at the lower middle-income poverty line is projected to increase to 37.2 percent in FY 2023 from 36.2 percent in FY 2022. This is pushing an additional 3.9 million people into poverty compared to FY2022. There is no lack of trust in the case of Pakistan as project loan repayments have historically been high.
What does the official of the World Bank have to say?
Naji Behasin, Pakistan’s director of the World Bank, said in response to a question that it was necessary to meet the needs of external financing for the revival of the IMF program. He said that Pakistan will have no option but to demand this program as it will help in building confidence. When asked about the prospects of regional trade, the World Bank official said that Pakistan’s export potential was $68 billion in terms of regional integration, in which trade with India could increase exports to $10 billion in the medium term. Whereas with China it can increase up to $13 billion.
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