The World Bank has said that India’s economic growth will be tremendous in the next financial year. At the same time, the economic condition of India’s neighboring country, Pakistan, has increased its concern. The World Bank fears that poverty in Pakistan could lead to insurgency in the coming days. Here more than one crore population can go below the poverty line.
The World Bank expressed horror
The World Bank has said that the economic condition of Pakistan is getting worse. He has warned about the country’s cash crunch. Also, in a country already struggling with inflation, more than one crore people have expressed fear of falling below the poverty line.
Pakistan’s economic growth has slowed down
According to World Bank estimates, Pakistan is growing at a slow economic growth rate of 1.8 percent, while the inflation rate is much higher than this. The inflation rate in Pakistan has reached 26 percent in the current financial year. The World Bank has released its semi-annual report on Pakistan’s growth outlook.
According to the World Bank, Pakistan may fall short of its primary budget target. It can remain in loss for three consecutive years. This is against the terms of the International Monetary Fund (IMF). In return for providing funds to Pakistan, the IMF has made it a condition that it must increase its revenue and achieve a budget surplus target.
Pakistan’s efforts to eradicate poverty are not enough
This World Bank report is mainly written by Syed Murtaza Muzaffari. According to him, Pakistan is reviving, but it is at a very early stage. The efforts being made to eradicate poverty are not enough. It has been said that economic growth is expected to remain modest. At the same time around 9.8 crore Pakistanis are already below the poverty line. Along with this, the poverty rate remains around 40 percent.
This benefit will be neutralized by wage growth
The report said that people living above the poverty line are at risk of falling below it. Under this, one crore people are at risk of falling below the poverty line. Unexpected gains in agricultural production are likely to benefit the poor, the World Bank said. But this gain will be neutralized by persistently high inflation and limited wage growth in high employment sectors such as construction, trade and transport.
The report stated that wages of daily wage laborers increased by only five per cent in the first quarter of this fiscal year while inflation was above 30 per cent. The World Bank has warned that the number of out-of-school children is likely to rise due to rising transport costs as well as the rising cost of living.
. Source
