7 hours Ago By Shivam Verma
After the recent terror attack in Pahalgam, Pakistan has been hit with more bad news. The World Bank has issued a serious warning, saying that around 10 million people in Pakistan could face severe food insecurity this financial year. This comes shortly after the International Monetary Fund (IMF) also lowered Pakistan’s economic growth estimate.
The World Bank has reduced Pakistan’s economic growth forecast to just 2.7 percent. The main reason behind this is the country’s strict economic policies, which are slowing down growth.
A report from The Express Tribune says that the Shahbaz Sharif-led government might not be able to meet its budget deficit target. Pakistan’s debt is also expected to rise compared to its GDP. One major concern is the impact on agriculture.
The World Bank says that due to changing weather and climate conditions, the production of important crops like rice and maize could fall sharply. This drop in food production may push 10 million Pakistanis, especially those living in rural areas, into high levels of food insecurity in the 2024-25 financial year. The report highlights issues that are often overlooked in official discussions—such as poverty, food insecurity, unemployment, and stagnant wages.
It says that sectors which provide jobs to the poor—like agriculture, manufacturing, and low-value services—are either not growing or are shrinking. As a result, wages are not increasing and people are struggling to make ends meet. In another alarming detail, the World Bank says that around 1.
9 million more people are likely to fall into poverty this year. With Pakistan’s population growing at around 2 percent, the poverty rate is also expected to rise. The employment-to-population ratio is just 49.
7 percent, which shows that many young people and women are not active in the labor market..
