The World Bank has downgraded Pakistan’s growth projections from four per cent in June of last year to two per cent for the current fiscal year, predicting a tough time for the country because of its precarious economic situation, low foreign exchange reserves, and large fiscal and current account deficits, as some of the main causes. After the coronavirus pandemic, the war between Russia and Ukraine has exposed the world economy to the dangers of recession. An assessment of the world economy has warned that if the negative trend prevails in the critical economic situation, the world economy will fall into recession. In the situation created by the war in Ukraine, inflation will continue to increase around the world, available resources will continue to be limited, and business activities will be disrupted, as a result of which the growth rate at the global level is likely to slow down, which will lead to major powers. According to the World Bank’s Global Economic Prospects report, the devastating floods of the previous year significantly harmed Pakistan’s agricultural production, which accounts for 23% of Pakistan’s GDP and employs 37% of the country’s working population. Other countries will be hit by economic shocks that could result in higher-than-expected inflation, unexpected increases in interest rates to control price increases, or the resurgence of epidemics, resulting in malnutrition, unemployment, and unemployment among large populations worldwide. In addition to the effects of the most recent flooding, Pakistan is currently dealing with challenging political and policy challenges. In January 2022, the rupee was worth Rs176 per US dollar; by the end of the year, it depreciated by 28 per cent to Rs226. A national food security catastrophe is brewing as inflation reaches record highs. To ensure that the IMF gives Pakistan the money it so desperately needs, the Pakistani government is making difficult economic decisions. Contrary to the World Bank’s report, the government expects growth at 3.2 per cent in FY2023/24, still below previous estimates, as the nation takes policy steps to stabilise macroeconomic conditions, inflationary pressures abate, and reconstruction after the floods gets underway. The World Bank has asked that debt restructuring be expedited, saying that if the severity of the financial crisis deepens, inflation will remain, leading to a worldwide recession. The logical outcome will be the economic devastation of the world’s large population in Pakistan. *