For the fiscal year 2022–2023, the World Bank forecasted a growth rate of 2% for Pakistan, which is a 2% decrease from its earlier estimates from April and June 2022.
The worldwide agency increased the prediction for Pakistan for FY23–24 to 3.2% in its report.
The bank stated in a statement that “the slower growth will reflect damages and interruptions caused by catastrophic floods, a tight monetary stance, high inflation, and a less favourable global environment.” Real GDP growth is anticipated to reach 3.2 percent in fiscal year 2024. The recovery will be sluggish.
According to the World Bank, the recent flooding will probably make poverty in the hardest-hit areas worse.
Without prompt relief and rehabilitation initiatives to assist the poor, preliminary projections indicate that the national poverty rate may rise by 2.5 to 4 percentage points, trapping between 5.8 and 9 million people in poverty, according to the statement.
The World Bank also predicted that the average growth rate for the South Asian region would be 5.8% this year, which is a 1% reduction from the prediction issued in June. This came after 2021’s growth of 7.8%, when the most of nations were recovering from the pandemic downturn.
In addition to the ongoing effects of the Covid-19 pandemic, South Asia is currently dealing with an unprecedented confluence of shocks due to the economic crisis in Sri Lanka, the devastating floods in Pakistan, the global downturn, and the effects of the conflict in Ukraine. In its twice-yearly update, the World Bank notes that the region’s growth is slowing down and emphasises the need for nations to strengthen their resilience.
