The report claims that the affordability and availability of basic necessities can exacerbate social and political instability.
In its global crisis risks report, the World Economic Forum identified ten risks that Pakistan will face until 2025.
According to the Global Forum’s “Global Risks” report, Pakistan is one of the larger emerging markets with a higher risk of default. Pakistan may face food shortages, cyber security issues, inflation, and an economic crisis in the next two years.
The report claims that the affordability and availability of basic necessities can exacerbate social and political instability. According to the report, water stress is widespread, and scarcity, combined with the paralysis of international cooperation mechanisms, has necessitated a degree of water nationalism, resulting in long-running disputes.
The report also mentioned the super floods in Pakistan, which destroyed vast swaths of agricultural land, significantly raising commodity prices in a country already dealing with record 27% inflation.
According to the Global Risk Report 2023, the top ten risks posing the greatest threats to Pakistan over the next two years are as follows: (1) Digital power concentration and monopolies; (2) failure of cybersecurity measures (including loss of privacy, data fraud or theft, and cyber espionage); (3) debt crises; (5) state collapse; (6) lack of widespread digital services and digital inequality; (7) interstate conflict; (8) terrestrial biodiversity loss and ecosystem collapse; (9) terrorist attacks; and (10) employment and livelihood crises.
According to the report, the cost-of-living crisis is the greatest short-term risk, while the failure of climate mitigation and adaptation is the greatest long-term concern. Geopolitical rivalries and inward-looking policies will exacerbate economic constraints and increase both short- and long-term risks.
The World Economic Forum’s (WEF) Global Risks Report assesses and ranks the relative impact and likelihood of various global risks. Economic, environmental, societal, and technological risks are all possible.
The report, which is based on a survey of experts from various fields and industries, provides an analysis of how various risks are interconnected and may exacerbate one another. The annual report provides a comprehensive overview of the current state of global risks as well as recommendations for mitigating them.