World Economic Forum identifies top five risks faced by crisis-hit Pakistan: Reports

The World Economic Forum (WEF) has identified the top five risks faced by economic-crisis-hit Pakistan. In its report — ‘Global Risks 2023’ — the WEF said that debt crisis, sustained and/or rapid inflation, state collapse, failure of cyber security measures and concentration of digital power are the top five risks faced by Pakistan, the Dawn reported on Thursday (January 12). The global forum said that Pakistan is facing a huge threat of hunger and distress amid a prevalent cost-of-living crisis.

The report said that the current cost-of-living crisis might be further aggravated by a combination of extreme weather events and constrained supply. “ (A combination of) extreme wea­ther events and constrained supply could lead the current cost-of-living crisis into a catastrophic scenario of hunger and distress for millions in import-dependent cou­n­tries or turn the energy crisis to­wards a humanitarian crisis in the poorest emerging markets” the report added.

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The WEF said that affordability and availability of necessities could stoke social and political instability and might also exacerbate instability not just in Pakistan, but in countries such as Tunisia, Ghana, Lebanon and Egypt,which are facing simultaneous food and debt crises.

Amir Jahangir, Chief Executive Officer Mishal Pakistan, the Partners Institute for New Economy and Societies Platforms of the World Economic Forum said the impact of insecurity would continue to be felt in Pakistan and may also exacerbate instability because of simultaneous food and debt crises, resulting in the emergence of a possible more technocracy-based decision-making leadership framework, said a report by Geo News on Thursday.

The WEF identified the cost-of-living crisis as the biggest short-term risk while the failure of climate mitigation and climate adaptation as the largest long-term concern. It also said that water shortage is widespread in Pakistan particularly impacting women and girls responsible for water collection, with impacts on health and education outcomes.

The global forum's observations come as Pakistani Prime Minister Shehbaz Sharif will seek a fresh economic package from the United Arab Emirates (UAE) during his two-day visit to the middle eastern country.

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Meanwhile, Saudi Arabia has agreed to assist Pakistan, by undertaking a feasibility study expanding its investments to $10 billion in Islamabad, while extending deposits with the State Bank of Pakistan to $5 billion after it rolled over $3 billion in December.

On Monday (January 9), international donors committed over $ 9 billion to help Pakistan recover from the devastating floods last year,which killed at least 1,700 people and displaced around eight million. Some of these donors include the World Bank, the European Union and the Islamic Development Bank.

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