Pakistan’s finance ministry warns of risks to country’s economy

A report in News International cited the ministry as saying that a rise in international commodity prices can build pressure on domestic inflation and balance of payment situation.

The local media has reported that the increasing inflation has worsened the conditions of lower-middle-income households.

The Dawn newspaper reported that increase in costs of transportation, electricity and indirect taxes could heighten the risk of increase in poverty, hunger and malnutrition.

While Food Price Index that includes five commodity group price indices — cereals, vegetable oils, sugar, meat and dairy, pointed to more difficult times ahead for Pakistan as it shows that global food prices were 31 per cent higher in July than a year ago.

But Islamabad’s indifferent view on the troubles of low-middle-income families that are already struggling with a substantial reduction in purchasing power and loss of jobs has added to the misery of people.

According to the World Bank (WB) estimate, poverty in Pakistan has increased from 4.4 per cent to 5.4 per cent in 2020, as over two million people have fallen below the poverty line.

Using the lower-middle-income poverty rate, the World Bank estimated that the poverty ratio in Pakistan stood at 39.3 per cent in 2020-21 and is projected to remain at 39.2 per cent in 2021-22 and might come down to 37.9 per cent by 2022-23, reported The News International

Meanwhile, reports have also suggested that most of the prominent cities in Pakistan do not have safe drinking water for citizens, according to data presented by the Imran Khan-led Pakistan Tehreek-e-Insaf government at National Assembly.

While experts said that a famine-like situation may arise in Pakistan due to the scarcity of water across the country if the issue is not resolved timely, Geo News reported. As per the report, water scarcity in the country has set alarm bells ringing after rivers have dried up due to low rainfall.

(With inputs from ANI)