According to the World Bank, Pakistan’s GDP per capita income will fall from $1613.8 in 2021-22 to $1399.1 in 2022-23.
The World Bank said in its study ‘Macro Poverty Outlook for Pakistan: April 2023’ that GDP per capita growth is expected to be -1.5 percent in 2022-23, down from 4.2 percent in 2021-22. The unemployment rate is expected to rise to 10.2% in 2022-23, up from 10.1 percent in 2021-22.
Pakistan’s GDP
Poverty will surely rise as a result of the strains of tight labour markets and high prices. Without increased social investment, the lower middle-income poverty rate is projected to rise to 37.2 percent in FY23.
Poor households remain vulnerable to economic and climate shocks due to their reliance on agricultural and small-scale manufacturing and construction activity.
Gross investment is expected to fall to 106 percent in 2022-23, down from 13.3 percent in 2021-22. Gross Public Investment is expected to be 2.8 percent in 2022-23, down from 3.4 percent in 2021-22. Private consumption growth is expected to be 1.3 percent in 2022-23, down from 10 percent in 2021-22.
Revenue is expected to fall to 10.9 percent of GDP in 2022-23, down from 12.1 percent in 2021-22, according to the Bank. The Bank of Pakistan stated that Pakistan’s economy is stressed due to low foreign reserves and high inflation.
Policy tightening, flood impacts, import limits, high borrowing and fuel prices, poor confidence, and prolonged policy and political uncertainty have all slowed activity.
Despite some anticipated rebound, growth is forecast to stay below potential in the medium run, according to the research.
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