Print Print 2023-04-15

World Bank estimates fall in GDP per capita income to $1,399

  • Says poverty will inevitably increase with pressures from weak labour markets and high inflation
Published April 15, 2023

ISLAMABAD: The World Bank has estimated a decline in GDP per capita income for Pakistan, ie, from $1,613.8 in 2021-22 to $1,399.1 in 2022-23.

The bank in its report 'Macro Poverty Outlook for Pakistan: April 2023' noted that GDP per capita growth is estimated at -1.5 percent in 2022-23 compared to 4.2 percent in 2021-22.

The unemployment rate is estimated to increase to 10.2 percent in 2022-23 compared to 10.1 percent in 2021-22. Poverty will inevitably increase with pressures from weak labour markets and high inflation.

World Bank cuts Pakistan’s GDP forecast to 0.4%

In the absence of higher social spending, the lower middle-income poverty rate is expected to increase to 37.2 percent in FY23. Given 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 decline to 106 percent in 2022-23 against 13.3 percent in 2021-22. Gross Investment - Public is estimated to be 2.8 percent in 2022-23 compared to 3.4 percent in 2021-22.

Private Consumption growth is estimated at 1.3 percent in 2022-23 compared to 10 percent in 2021-22. The Bank has estimated revenue to decline to 10.9 percent of GDP in 2022-23 compared to 12.1 percent in 2021-22.

The bank noted that Pakistan’s economy is under stress with low foreign reserves and high inflation.

Activity has fallen with policy tightening, flood impacts, import controls, high borrowing and fuel costs, low confidence, and protracted policy and political uncertainty. Despite some projected recovery, growth is expected to remain below potential in the medium term, the report added.

Copyright Business Recorder, 2023

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John Apr 15, 2023 07:55am
What an unfortunate country! Poor are dying in lines to get flour...and the corrupt elite are getting drunk on premium spirits...the compromised leaders are compromised by all forces...As...to...Zs!
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Tulukan Mairandi Apr 15, 2023 10:23am
Exactly what i said. GDP growth of 0.4%, but with population growth of 1.8% automatically means there is an economic contraction. People earn less. On top of that, half of our earnings go to interest repayments. There is no hope left for Pakistan. Default, famine and potential meltdown. It's about time we prepare.
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Joe Apr 15, 2023 11:28am
"World Bank estimates fall in GDP per capita income to $1,399" Nation-wide rampant increase in crime reflects this decline in income!
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Magiladho brohi Apr 15, 2023 11:42am
My home demage and 2 cow flood expired
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A. Tahir Apr 15, 2023 01:52pm
@Joe, With criminal rulers, the country is is in a tail spin!
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Adnan Aziz Apr 15, 2023 04:22pm
Qarz ki peetay thay mai, laikin samajhtay thay ke haan. Rang laaye gee hamaree faaqa mastee aik din. Mirza Ghalib wrote this for the present day Pakistan. How prophetic he was.
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Haq Apr 15, 2023 05:01pm
We need to scrap this rotten, pro-elite corrupt system & kick out all it's custodians / beneficiaries
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Usman Apr 17, 2023 09:12am
Such a serious decline in GDP per capita should be attributed to the current regime
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TheHomieJon May 14, 2023 09:18pm
@TimeToMovveOn, you aint american, stop pretending like you are one
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