Islamabad, April 24 (HS): The World Bank has cautioned that around 10 million people in Pakistan may face severe food insecurity in the current fiscal year, alongside an anticipated rise in poverty levels. This warning followed a downgrade of Pakistan's economic growth forecast to 2.7 percent, attributed to stringent economic policies.

The World Bank's Pakistan Economic Update report indicated that the government might struggle to meet its annual budget deficit targets and that the country's debt burden is likely to increase relative to GDP. Adverse climate conditions affecting key crops like rice and corn have contributed to this food insecurity, primarily impacting rural areas.

Additionally, with a population growth rate near two percent, approximately 1.9 million more individuals are projected to fall into poverty this year. The report emphasized the insufficient social security spending in relation to inflation, limiting resources for essential needs. It recommended restoring a market-determined exchange rate and a functioning interbank foreign exchange market to mitigate these issues.

Hindusthan Samachar / Jun Sarkar