Amid Tensions with India, Pakistan’s Growth Slashed to 2.7%, Food Crisis Looms

Amid escalating tensions with India, Pakistan has received another blow. While the country is already grappling with widespread poverty, it is now gripped by fears of war with India. In this backdrop, the World Bank has issued a troubling forecast. According to its recent report, more than ten million people in Pakistan are currently suffering from hunger. The World Bank has warned that Pakistan is likely to face severe food shortages in the current fiscal year. The report also states that poverty levels in the country are expected to rise further.

The World Bank has revised Pakistan’s economic growth projection downward to 2.7 percent, citing the country’s fiscal policies and increasing debt burden. The report further cautioned that the government, led by Prime Minister Shehbaz Sharif, may not be able to meet its annual budget deficit target. The debt-to-GDP ratio of Pakistan is also expected to worsen, according to the report.

Currently, over ten million people in Pakistan are battling hunger. The World Bank attributed this crisis to adverse weather conditions affecting crop yields, particularly rice and maize. As a result, more than ten million people living in rural areas could experience acute food insecurity. With a population growth rate of approximately 2 percent, the World Bank estimates that about 1.9 million people could fall into extreme poverty during this fiscal year. The report also highlighted the low participation of women and youth in the labor force.

Pakistan’s current employment-to-population ratio stands at 49.7 percent. The World Bank report identified key structural challenges that have persisted over the past decade, including food insecurity, poverty, unemployment, and declining real wages. Sectors such as agriculture, manufacturing, and low value-added services have experienced negative growth, leading to stagnant real income levels. The release of this report follows the recent militant attack in Pahalgam, further underscoring the fragile socio-economic environment in Pakistan.