In the current financial year, the growth rate of Pakistan’s economy is likely to be only 2 percent.
The World Bank says economic recovery in Pakistan will be gradual, with real GDP growth expected to reach 3.2 percent in the next fiscal year.
According to the World Bank, preliminary estimates indicate that the poverty rate in Pakistan may go up to 2.5 to 4 percentage points, with this rate of poverty, 58 to 9 million people may suffer from poverty.
The World Bank says that macroeconomic risks are also high in Pakistan, Pakistan is facing a large current account deficit, high public debt, and the recent floods are likely to have a negative impact on Pakistan’s economy and the poor.
According to the World Bank, inflation in Pakistan is expected to hover around 23 percent in FY23, reflecting flood-related disruptions.
The World Bank added that the update shows that higher inflation will disproportionately affect the poor, while floods, tight monetary policy, high inflation, and unfavorable global conditions will slow growth.