ISLAMABAD: The World Economic Forum (WEF) sees Pakistan facing a greater risk of hunger and poverty amid a prevailing inflationary crisis, and has warned that it will be further affected by extreme weather events and supply shortages. can grow
For the past 17 years, the WEF’s Global Risks Report has warned of deeply interconnected global risks. Conflicts and geo-economic tensions have given rise to a series of deeply interconnected global threats, the report said.
These include energy and food supply crises, which are likely to persist for the next two years, and sharp increases in the cost of living and debt servicing. At the same time, these crises undermine efforts to address long-term risks, particularly those related to climate change, biodiversity and investment in human capital.
Regarding Pakistan, the report points out that a combination of extreme weather events and supply disruptions could escalate the current crisis of precious lives into a catastrophic scenario of hunger and distress for millions of people. It can also turn an energy crisis into a humanitarian crisis. Energy shortages – due to supplier outages or natural, accidental, or intentional damage to pipelines and energy grids – if combined with extreme weather can lead to mass blackouts and casualties. can cause
The report identified the following ten threats as the biggest threats to Pakistan in the next two years: 1) concentration of digital power and monopolies, 2) failure of cyber security measures (including loss of privacy, data fraud or theft, cyber espionage). 3) rapid and/or persistent inflation, 4) debt crisis, 5) collapse of the state, 6) widespread lack of digital services and digital inequality, 7) interstate conflict, 8) loss of terrestrial biodiversity and Destruction of ecosystems, 9) Terrorist attacks, 10) Crisis of employment and livelihood.
Aamir Jahangir, Chief Executive Officer of Mishal Pakistan, the World Economic Forum’s partner Institute for New Economies and Societies Platforms, said: “The Global Risks Report 2023 indicates that both the affordability and availability of basic needs for Pakistan are social risks. and can affect political issues. instability”.
“Last year alone fuel price hikes sparked protests in 92 countries, some of which resulted in political upheaval and deaths, as well as strikes and industrial shutdowns,” he added.
Jahangir said: “The impact of insecurity will continue to be felt in Pakistan and the simultaneous food and credit crisis may lead to increased instability, possibly leading to technocratic decision-making. framework can emerge.”
The report identified that the cost of living crisis is the biggest short-term threat, while climate mitigation and climate adaptation failure are the biggest long-term concerns. Geopolitical rivalries and inward-looking positions will exacerbate economic constraints and exacerbate short- and long-term risks.
A report by the World Economic Forum estimates that more than 800,000 hectares of farmland could be wiped out by the 2022 floods in Pakistan – leading to a significant increase in commodity prices in a country already experiencing record 27 percent inflation. suffering from Water stress is also widespread in Pakistan, particularly affecting women and girls who are responsible for collecting water, with knock-on effects on health and education outcomes. More widespread depletion combined with the paralysis of international cooperation mechanisms has necessitated a degree of water nationalism, resulting in protracted conflicts between neighboring states and countries. In the face of burgeoning humanitarian crises and state instability, water infrastructure can be used as both a weapon and a target, reflecting past water conflicts and terrorism in India, Pakistan and Afghanistan.
On the international front, the global pandemic and war in Europe have brought energy, inflation, food and security crises back to the fore. These create follow-on risks that will dominate the next two years: the risk of recession; increasing debt distress; The continuing cost of life crisis; polarized societies enabled by misinformation and disinformation; A pause on accelerated climate action; and zero-sum geo-economic warfare.
“The short-term risk landscape is dominated by energy, food, debt and disasters. Those who are already most vulnerable are suffering – and given multiple crises, those who are most vulnerable are vulnerable.” , are spreading rapidly, in rich and poor countries alike. In this already toxic mix of known and growing global threats, a new shock event, from a new military conflict to a new virus, WEF Managing Director Sadia Zahidi said climate and human development must be at the center of concern for world leaders to build resilience against future shocks.
