Bad news for Pakistan amid tensions with India, World Bank report says 1 crore Pakistanis are at risk of…

Amid heightened tensions and the threat of a full-scale India-Pakistan war, there is more bad news coming for the cash-strapped nation with over 10 million Pakistanis staring at starvation, according to a World Bank report. As per the report, more than 1 crore people in Pakistan face severe food insecurity and an increased risk of a sharp rise in poverty levels during the current financial year.

Additionally, the World Bank report has revised Pakistan’s economic growth forecast to 2.7 percent, citing the country’s current economic policies and debt. The report also warned that Prime Minister Shehbaz Sharif led government may also fail to meet its annual budget deficit target, while Pakistan’s debt-to-GDP ratio is likely to surge.

10 million Pakistanis face starvation

The World Bank report noted that climatic conditions are likely to negatively impact the agricultural production of major crops like rice and maize, due to which more than 10 million or over 1 crore people in Pakistan, mostly in rural areas, could face acute food insecurity, including starvation in extreme cases, in FY25.

The report also forecasted with a population growth of about 2%, more than 19 million (19 lakh) people could fall into extreme poverty during the current fiscal year. Additionally, the report also highlighted the extremely low participation of women and youth in the labor market, with Pakistan having a 49.7% employment-to-population ratio.

Notably, the World Bank report once again pins down long-standing issues that have plagued Pakistan in the past decade, including critical matters like food insecurity, poverty, unemployment and declining real wages. The report points out that major sectors for the poor such as agriculture, manufacturing and low value added services are experiencing negative growth, due to which the real wage rate has also remained stagnant.

Pahalgam attack aftermath

The World report comes amidst the backdrop of the barbaric Pahalgam terror attack that has heightened tensions between India and Pakistan and triggered fears of an all-out war between the two nuclear-armed neighbors.

Following the Pahalgam attack, Prime Minister Narendra Modi led Central government announced strict measures, including downgrading diplomatic ties with Pakistan, barring visas to Pakistani nationals, suspending the Indus Waters Treaty and closing the Attari-Wagah border.

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