World Economic Forum Report Expresses Optimism About Pakistan’s Economic Stability
Islamabad:The World Economic Forum (WEF) has expressed a cautiously optimistic view about Pakistan’s economic situation, stating that despite facing numerous challenges, the country is moving towards economic stability. The WEF highlighted that Pakistan has made significant economic achievements due to the implementation of the right policies, even amid challenging circumstances.
The WEF released its **Global Risk Report 2025**, which acknowledges Pakistan’s cautious approach despite the ongoing arms race in the region. While military spending has increased globally, Pakistan has not become part of this arms race. The report commended Pakistan for showing significant improvements in areas such as inflation reduction, economic stability, the strengthening of the rupee, and better debt management.
However, the report also mentioned that Pakistan is one of the most vulnerable countries to environmental risks, with frequent floods, heatwaves, and water shortages posing a threat to food security, infrastructure stability, and employment. The WEF report further shed light on the growing political and social polarization within the country and highlighted the challenges posed by increasing geopolitical conflicts, deteriorating economic instability, and environmental crises.
It pointed out that like other developing economies, Pakistan faces complex risks that require strategic flexibility and policy innovation to tackle. The report also warned that inflation, depreciation of the currency, and rising debt burdens could weaken Pakistan’s economy. However, the WEF believes that Pakistan has the potential to achieve greater stability by fostering innovation, strengthening governance, and enhancing regional cooperation.
The report concludes by stating that the ability to turn risks into opportunities will define Pakistan’s future. With collective determination, the country has the potential to position itself as a significant player in the emerging global landscape.
