THE World Bank has painted a very bleak picture of Pakistan`s economic landscape. The WB`s Macro Poverty Outlook states that poverty is estimated to have increased last fiscal year due to skyrocketing food and energy prices, a struggling labour market and the aftermath of catastrophic floods. This is cause for grave concern. According to WB, more than 10m people are teetering on the edge, and could fall below the poverty line if matters worsen. The most urgent concern arises from the staggering impact of inflation on our nation`s most vulnerable populations, reaching a multidecade high of 29.2pc in FY23. With food and energy prices continuing to surge, the purchasing power of the poor is further eroded. This has led to a situation where basic necessities are becoming increasingly unaffordable for many, pushing them further into poverty. Inflation is projected to remain alarmingly high in the coming years, with a 26.5pc estimate for FY24. While there is some hope for a moderate decline in subsequent years, the damage has been done. The burden of these price increases falls disproportionately on the shoulders of those who can least carry it.

The report also highlights that deteriorating wages and job prospects have made it even tougher for families to break free from the cycle of poverty. It is crucial for policymakers to address these issues head-on and implement measures that ensure decent work and fair wages for all. Further contributing to the economic insecurity is the high petroleum levy and the energy tariff adjustments. A holistic approach that addresses the energy sector`s woes and reduces the burden on households has become of prime importance. WB also warns of dwindling foreign exchange reserves, a situation which necessitates stringent import control and could hinder economic recovery.

It`s a precarious situation that calls for careful management and strategic decision-making. The government must focus on policies that not only stimulate economic growth but also ensure that its benefits are felt by all segments, especially those at the bottom of the pyramid. Poverty is a pressing issue that demands immediate attention and concerted efforts from our government and society at large. It is time to put aside political differences and work towards a more equitable and prosperous future for all Pakistanis. The challenge is not insurmountable, but it requires a unified and determined effort.