The World Economic Forum’s Global Risk Report 2025 has shown confidence in Pakistan’s economic progress. The report highlights Pakistan’s journey toward economic stability despite ongoing challenges. It acknowledges the country’s achievements, crediting these successes to effective measures taken by its leadership.
The report praises Pakistan’s approach to avoiding regional arms races. While global military spending has risen, Pakistan has maintained a cautious stance. This restraint has been described as commendable by the World Economic Forum.
Pakistan has made notable progress in key economic areas. Inflation rates have decreased, the rupee’s value has improved, and debt management has become more effective. These advancements signal positive trends in economic stability.
However, the report also sheds light on significant challenges. Pakistan faces severe environmental threats, including frequent floods, intense heatwaves, and water shortages. These issues threaten food security, infrastructure, and the livelihoods of its people. Pakistan’s vulnerability to environmental risks is among the highest globally.
Additionally, the report points to increasing political and social polarization within the country. Geopolitical conflicts, worsening economic instability, and environmental crises have added to Pakistan’s challenges. Inflation, currency devaluation, and a growing debt burden pose further risks to the economy.
To overcome these issues, the report emphasizes the need for strategic flexibility and innovative policies. Like other developing nations, Pakistan must address complex risks with resilience and foresight.
