The IF program will weaken economic activity in Pakistan.
According to a recent report released by the World Bank, the resumption of the IMF loan program will have a short-term negative impact on economic activity, while unemployment and poverty are already on the rise due to the code. According to the report, 30% of the rural population has fallen into the abyss of poverty.
A report titled “Pakistan Development Update – Navigation in Certain Times” states that the impact of Code 19 has tripled the number of people suffering from food insecurity. It has increased to 10%.
The World Bank has forecast a growth rate of 1.3 percent for the current fiscal year, slightly lower than the IMF forecast. The World Bank report should cause a wave of concern in the houses of power as the report does not bode well for Pakistan’s social and economic landscape. According to the World Bank, Pakistan’s economic growth was expected to improve.
However, steps taken to meet the conditions attached to the IMF loan program will weaken economic activity in the short term. Cabinet sources told the Express Tribune that the next few months would be tumultuous for the Pakistani economy. He said that if the government implements the IMF program, it will increase inflation and poverty and if it does not, then it will send a wrong message to the world.
According to the World Bank, the simulation results indicate that Korna has led to a possible 2.3 percent increase in poverty in the last financial year and another 5.8 million people have fallen into poverty.