Pakistan, Jan. 22 -- The World Bank has warned that Pakistan faces growing economic risks due to climate shocks, regional conflicts, and global financial pressures. Repeated floods, extreme weather, and fragile security conditions make the country highly vulnerable. The Bank said these challenges could derail recovery and worsen fiscal and inflationary pressures.

The Bank's Global Economic Prospects report for January 2026 highlighted that Pakistan's economy is exposed to repeated climate disasters. Floods, heatwaves, and other extreme events have damaged crops, infrastructure, and public finances. These shocks force the government to divert resources to emergency relief, slowing recovery and increasing debt risks.

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