World Bank estimates decline in Pakistan's GDP per capita income to USD 1,399

April 2023', the bank noted that GDP per capita growth is estimated at -1.5 per cent in 2022-23 in comparison to 4.2 per cent in 2021-22. World Bank has cut Pakistan's GDP forecast to 0.4 per cent

The unemployment rate in Pakistan is estimated to rise from 10.2 per cent in 2022-23 to 10.1 per cent in 2021-22.

Poverty will inevitably rise with pressures from weak labour markets and high inflation, as per the Business Recorder report.

In the absence of higher social spending, the lower-middle-income poverty rate is expected to rise to 37.2 per cent in FY23.

Considering poor households' dependency on agriculture and small-scale manufacturing and construction activity, they remain vulnerable to economic and climate shocks.

Gross investment is estimated to reduce to 106 per cent in 2022-23 compared to 13.3 per cent in 2021-22. Gross Investment-Public is estimated to reach 2.8 per cent in 2022-23 in comparison to 3.4 per cent in 2021-22, Business Recorder reported.

Meanwhile, Private Consumption growth is estimated at 1.3 per cent in 2022-23 in comparison to 10 per cent in 2021-22.

The World Bank has estimated that the revenue of Pakistan will drop to 10.9 per cent of GDP in 2022-23 in comparison to 12.1 per cent in 2021-22, as per the Business Recorder report.

According to the World Bank, Pakistan's economy is under stress with low foreign reserves and high inflation.

The activity has reduced with policy restrictions, flood effects, import controls, high borrowing, fuel costs, low confidence and and political uncertainty.

As per the report, the growth is expected to remain below potential in the medium term despite some projected recovery.

With dampened imports, the current account deficit in Pakistan is projected to narrow to 2 per cent of GDP in the fiscal year 2023 but widen to 2.2 per cent of GDP in the fiscal year 2025 as import controls ease.