Pakistan GDP: World Bank predicts a huge decline in Pakistan’s GDP, fears of increasing poverty rate

Pakistan GDP: Projecting a massive 0.4 per cent decline 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 Pakistan could be in deep economic trouble due to non-completion of the IMF programme, failure to secure funding from major bilateral partners and political instability.

World Bank said, "The country’s outlook is subject to key downside risks, which, if they materialize, could result in a macroeconomic crisis. The non-completion of the IMF program and the failure to secure expected rollovers, refinancing and new financing from key bilateral partners raise risks." 

ADB also projected a growth rate of 0.6 percent 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 expected to increase to 37.2 per cent in FY 2023 from 36.2 per cent in FY 2022. This is pushing an additional 3.9 million people into poverty compared to FY2022. There is no lack of credibility in the case of Pakistan as project loan repayments have historically been high.

What the World Bank official has to say

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