'Rapid inflation' among major risks faced by Pakistan: WEF.

ISLAMABAD -- The World Economic Forum in its global crisis risk report has identified debt crisis, sustained and/or rapid inflation, state collapse, failure of cyber security measures, and concentration of digital power as top five risks faced by Pakistan.

In its 'Global Risks 2023' report, the global forum said that PakisAtan was also among larger emerging markets exhibiting a heightened risk of default. Other countries include Argentina, Egypt, Ghana, Kenya, Tunisia, and Trkiye.

According to the report, '[A]ffordability and availability of basic necessities can stoke social and political instability ... may also exacerbate instability in countries facing simultaneous food and debt crises, such as Tunisia, Ghana, Pakistan, Egypt and Lebanon.'

It said water stress was widespread and its scarcity, combined with paralysis of international coAoperation mechanisms, has necAessitated a degree of water nationalism, resulting in prolonged disputes.

'In the face of spreading humanitarian crises and state insAtability, water infrastructure continues to be used both as a weapon and target, mirroring past water conflicts and terrorism in India, Pakistan and Afghanistan.'

Cost of living to be top global crisis risk over next two years, warns Global Risks 2023 report

The report also referred to the super floods in Pakistan which destroyed swathes of agricultural land, increasing commodity priAces significantly in a country already grappling with record 27% inflation.

'Cost of living'

A combination of 'extreme weaAther 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 couAnAtries or turn the energy crisis toAwards a humanitarian crisis in the poorest emerging markets', it added.

However, the 'cost of living crisis' is ranked as the most severe global risk over the next two yeaArs, peaking in the short term.

'BiodiAversity loss and ecosystem collapse' is viewed as one of the fastest deteriorating global risks over the next decade, and all six environmental risks feature in the top ten risks over the next ten years.

Nine risks are featured in the top ten rankings over both the short- and the long-term, including 'geo-economic confrontation' and 'erosion of social cohesion and societal polarisation', alongside two new entrants to the top rankings: 'Widespread cybercrime and cyber insecurity' and 'large-scale involuntary migration'.


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