The World Bank has released a report highlighting key issues in Pakistan’s economy, noting a rise in the poverty rate.
According to the report, the poverty rate in Pakistan increased from 40.2% in 2023 to 40.5% in 2024. Additionally, the cost of electricity in the country is higher than its actual production cost, and 20% of the electricity subsidies are being passed on to the public.
The report further stated that Pakistan’s economic growth lacks the capacity to reduce poverty, and the country’s population growth rate is outpacing its economic growth rate. The World Bank estimates that Pakistan’s GDP growth could reach 2.8% this year, while the current account deficit is expected to be 0.6% of GDP.
Moreover, the financial deficit for the year could be 7.6% of GDP, and the national debt is projected to be 73.7% of GDP in the current fiscal year.
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