Karachi: International Labour Organisation (ILO) United Nations (UN) agency has said, “Very high levels of energy subsidies” in countries such as Pakistan are denting finances. In its report, ILO also classified Pakistan among lower-middle-income countries.

As per ILO’s ‘World Employment and Social Outlook: Trends 2023’ released, South Asian region remains highly vulnerable to natural disasters, for example on flood plains of Pakistan and Bangladesh.

In report, Pakistan was classified among lower-middle-income countries, sitting alongside countries including Bangladesh, Senegal, Nepal and Zimbabwe.

As per report, South Asia has seen strongest growth in region and some of highest regional figures in world i.e. 6 percent in 2022 and 5.3 percent projected for 2023.

Pakistan is currently reeling from one of its worst economic crisis in history, battling multiple challenges including dwindling foreign exchange reserves, energy crunch and industrial/manufacturing slowdown.

Situation has prompted several companies to shut or scale back operations as policymakers scramble to secure dollar inflows from multilateral and bilateral donors in face of stalled International Monetary Fund programme.

Published in The Daily National Courier, January, 18 2023

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