ISLAMABAD: The economic crisis tightened the circle around Pakistan, and the World Bank (WB) has forecast another recession in the economy, the Gross Domestic Production (GDP) will be further slow in the current fiscal year.
“Pakistan’s consumer price inflation reached 24.5 percent in December on an annual basis, recently coming off its highest rate since the 1970s,” stated the report.
The report said, “Pakistan, with low foreign exchange reserves and rising sovereign risk, saw its currency depreciate by 14 percent between June and December and its country risk premium rise by 15 percentage points over this same period.”
It said, “The slowdown in the global economy and rising uncertainty will weigh on export and investment growth, Governments increased infrastructure spending and various business facilitation measures.”
“This is mainly due to weak growth in Pakistan, which is projected at 2.0 percent in FY2022/23, half the pace that was anticipated last June. Pakistan faces challenging economic conditions, including the repercussions of the recent flooding and continued policy and political uncertainty.”
According to the report, “Pakistan and Sri Lanka have had to tighten policies more rapidly in pursuit of macroeconomic stability.”
“Food prices have risen rapidly in SAR, especially in Pakistan and Sri Lanka, increasing the incidence of food insecurity in the region,” It said.
Export bans on food, also increasingly prevalent, could have unintended consequences and exacerbate increases in global food prices. Afghanistan, Bangladesh, India, and Pakistan implemented export restrictions on food 2022 including rice, wheat, and sugar.
However, the report said climate change is a significant threat in the region.
Leave a Reply