The World Bank has warned that over 10 million additional people in Pakistan are at risk of falling into poverty due to the country’s slow economic growth rate of 1.8% and high inflation of 26%. The bank’s Pakistan Development Outlook report indicates that the nation is likely to miss most major macroeconomic targets, including the budget surplus mandated by the IMF. Despite some economic recovery, poverty alleviation efforts are deemed insufficient. The report projects economic growth to remain low at 1.8%, keeping the poverty rate around 40%. It also highlights the vulnerability of those near the poverty line, with 10 million individuals at risk of slipping into poverty. The report warns of potential increases in out-of-school children and delayed medical treatments due to the cost-of-living crisis. It also predicts an increase in food insecurity in flood-affected rural districts. The World Bank suggests that Pakistan needs substantial economic reforms to improve its outlook and avoid social discontent.
