The World Bank has made it clear that Pakistan’s economy is currently in trouble and the inflation in Pakistan is the highest since the 1970s.
The World Bank has also reported on the economic impact that the global economy has faced a slowdown due to the war between Russia and Ukraine.
Apart from this, it has been said about Pakistan that when the flood occurred in Pakistan and the loss of people, the economic rate of Pakistan can be seen only up to 2% and the World Bank has previously given Pakistan’s GDP up to 4%.
The World Bank said that the economic situation of Pakistan is very bad and this is because people have been affected due to floods in Pakistan and the political situation has worsened and Pakistan is facing severe difficulties in repaying its debts.
Pakistan’s inflation rate rose to 24.5 percent in December 2022, the highest since 1970, the World Bank said, adding that Pakistan suffered a 4.8 percent loss of GDP due to floods.
Along with this, the rupee has depreciated a lot against the dollar and has fallen by around 14%. Besides, the supply of food and essential items may also be impacted due to bad weather.
Infrastructure and agricultural production can also be damaged and due to all these the country risk premium has gone up to 15%.