New Delhi, January 3 (IANS). Pakistan may face serious economic challenges in the year 2026. Weak economic growth, frequent terrorist attacks and potential disasters related to climate change are adding to the country’s troubles. This has been said in a new report published in Nikkei Asia.
According to this report written by Farhan Bokhari, Pakistan has been saved from default on foreign debt due to the loan of $ 7 billion received from the International Monetary Fund (IMF) in 2024 till 2027, but it will face many big challenges in 2026.
The report said Pakistan’s current annual economic growth rate is about 3 percent, which is just slightly higher than the country’s population growth rate. This situation is considered worrying for the economy.
Pakistan needs drastic internal reforms to accelerate economic growth. According to the report, more than 40 percent of Pakistan’s population of about 257 million people are living in extreme poverty. Furthermore, the level of illiteracy in the country is also extremely worrying, with approximately 40 percent of the population considered illiterate.
The report also said that the ongoing political tussle within Pakistan has weakened investor confidence, especially those investors who want to invest with a long-term perspective. Until the political conflict ends, investors will remain cautious about medium and long term investments.
Due to lack of strong new capital investment, Pakistan is expected to remain trapped in a vicious cycle of low economic growth.
Additionally, Pakistan has suffered large-scale devastation from heavy rains and floods in recent years. According to the report, in 2026 the country is likely to receive about 20 percent more rainfall than last year, due to which the situation may become more serious.
The report also states that nearly one-third of children under five years of age in Pakistan suffer from stunting due to malnutrition. Not being able to achieve rapid economic growth for a long time and not having equal distribution of wealth are also among the major problems of the country.
–IANS
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