Global Rice News

World Bank Raises Poverty Alert for Pakistan

The World Bank has cautioned that Pakistan has reached a critical point on poverty with a substantial 40 per cent of its population dwelling below the poverty line, as per The Financial Post’s report.

Rice suppliers in the area, can bear witness to the escalating challenges, as women have been observed comparing pakistani rice prices in the main wholesale markets in Karachi.(AFP)

Economic Crisis in Pakistan

The cautionary notification got presented in time away for the impending elections. Intended to work as an advisory for the upcoming government, the Bank’s policy note highlights the need for prompt policy reforms.

Highlighting the Bank’s suggestions, it is discovered that a whopping 12.5 million Pakistanis slipped beneath the poverty line last year, battling to meet their basic everyday survival needs.

The contemporary data reveals that poverty inflated from a previous 34.2 per cent to a worrying 39.4 per cent. This means there is a growing populace that is earning less than USD 3.65 per day.

Worsening Living Standards in Pakistan

Pakistan’s significant economic and human development crises suggest that the country falls short in its ability to curtail poverty and living standards have lagged behind similar nations. The nation’s administration’s ability to create a significant difference appears doubtful.

Rice exporters from Pakistan and other pakistan rice companies are also feeling the strain of the general economic scenario.

Taking Action Against Poverty

Najy Benhassine, the Country Director for the World Bank in Pakistan, speaking during the release of the policy notes on Pakistan, stressed that this may be a perfect time to effect policy changes. He pointed out the numerous economic challenges Pakistan is grappling with, such as inflation, escalating electricity costs, extreme weather occurrences, and inadequate public resources to champion development and climate adaptation.

He added that Pakistan has the lowest per capita income in South Asia. Additionally, the nation has the highest number of out-of-school children globally. Pakistan’s human development outcomes are lagging significantly behind the rest of South Asia. They are equivalent to that of several Sub-Saharan African countries, with girls and women bearing the brunt of the costs disproportionately.

Staggeringly close to 40% of children under the age of five are stunted in growth, and Pakistan boasts the most significant number (20.3 million) of out-of-school children globally.

According to the World Bank, Pakistan’s growth model has also culminated in sporadic balance of payments crises due to unsustainable fiscal and current account deficits. These have necessitated subsequent painful contractionary adjustments, all of which have impeded growth, reduced certainty and underpinned investments, as per The Financial Post.

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Source: Hindustan Times