Pakistan Shows Resilience and Progress in the Global Risk Report 2025 by World Economic Forum.

The World Economic Forum (WEF) Identifies Key Risks Facing Pakistan Amidst Global Uncertainty

The Global Risks Report 2025, published by the World Economic Forum (WEF) today, highlights a satisfactory outlook for Pakistan as part of its annual global risk assessment.

The report, based on insights from over 900 experts worldwide, and 11,000 experts as part of the Executive Opinion Survey globally. Mishal Pakistan carried the extensive Executive Opinion Survey (EOS) from February to June 2024 in Pakistan, caputring the voice of the Business Leaders in the country.

The Global Risk Report presents an in-depth analysis of the geopolitical, economic, environmental, societal, and technological challenges expected to shape the global and regional landscape in the coming years. Pakistan, like many other developing economies, faces an increasingly complex risk environment that demands strategic resilience and policy innovation to navigate uncertainties.

Pakistan’s key risks in 2025 revolve around economic vulnerabilities, climate-driven disasters, political instability, and technological disruptions. The report warns that inflation, currency depreciation, and rising debt obligations could significantly weaken Pakistan’s economic position, impacting investment confidence and growth prospects. However cthe country has shown remarkable resilince in the last few years and have managed its economic challenges gracefully. Additionally, the country remains one of the most climatevulnerable nations, facing recurring floods, heatwaves, and water shortages, which threaten food security, infrastructure stability, and livelihoods. 

Amir Jahangir , CEO Mishal Pakistan , the country partner institute of the World Economic Forum  said, "Pakistan has consistently demonstrated resilience in the face of global uncertainties, and the Global Risks Report 2025 highlights both our challenges and opportunities. As we navigate economic shifts, climate adaptation, and technological advancements, Pakistan has the potential to emerge stronger by fostering innovation, strengthening governance, and enhancing regional collaboration.” He further said, “Our ability to turn risks into opportunities will define our future, and with the right policies and collective determination, Pakistan can position itself as a key player in the evolving global landscape."

The report also underscores the growing political and social polarization in Pakistan, warning that governance challenges and civic freedoms could deteriorate further.

Meanwhile, geoeconomic confrontations and global trade disruptions pose additional threats, particularly regarding Pakistan’s dependence on strategic imports such as energy and essential commodities. As the nation continues to expand its digital footprint, it must also address the rising risks of misinformation, cyber warfare, and data security breaches, which could destabilize public trust and national security.

On a global scale, the Global Risks Report 2025 presents a bleak outlook, highlighting escalating geopolitical conflicts, worsening economic instability, and deepening environmental crises. State-based armed conflict has emerged as the #1 global risk for 2025, fueled by ongoing wars in Ukraine, the Middle East, and Africa. 

Additionally, misinformation and disinformation have been identified a s the most significant threat over the next two years, severely undermining democracy, public trust, and institutional credibility.

Climate risks remain a top concern, with extreme weather events, biodiversity loss, and ecosystem collapse dominating the long-term risk landscape. Geoeconomic tensions and supply chain disruptions are also on the rise as countries shift toward protectionist policies, disrupting global trade and resource flows. At the same time, the rapid expansion of artificial intelligence (AI) and cybersecurity vulnerabilities poses new ethical, regulatory, and security challenges worldwide.

The Report also identifies that there is an increase in the global spending on defence spendings that could result into arms race at major flash points in the world. This could lead to major armed conflicts globally in the next 2-3 years. The defence spending also indicates that there will be less money to be spent on global social equity e.g. health and education related challenges. Concerns surrounding state based armed conflicts and geoeconomic confrontations have consistently ranked among the top global risks over the past two decades, albeit with some fluctuations. 

Today, geopolitical instability— particularly the fear that existing conflicts may escalate or spread—stands as the most pressing immediate-term threat. A sense of fear and uncertainty looms over multiple regions, where hostilities persist, and diplomatic efforts face mounting challenges. Meanwhile, multilateral institutions struggle to mediate effectively, underscoring the growing difficulty in forging sustainable resolutions to these crises.

The WEF’s 2025 risk assessment calls for urgent global cooperation to mitigate these growing threats. For Pakistan, this means implementing sound economic policies to control inflation, attract investment, and manage debt sustainably. Enhancing climate resilience through sustainable urban planning, improved resource management, and disaster preparedness is also essential. Furthermore, Pakistan must strengthen cybersecurity frameworks to protect its digital infrastructure and work toward political stability and social cohesion to minimize the risks of polarization.

Amir Jahangir, a global competitiveness, risk, and development expert, leads Mishal Pakistan, the country partner institute of the New Economy and Societies Platform at the World Economic Forum. As a leading narratologist and an expert on Artificial Intelligence (AI) policy for technology, and governance, he is an alumnus of Harvard Law School’s Program on Negotiation (PON), affiliated with Harvard University, Massachusetts Institute of Technology (MIT), and Tufts University since 2008. Jahangir is also an alumnus of the National Defence University Islamabad, and the Harvard Kennedy School of Government's Program for Senior Executives in National and International Security, he can be reached at aj@mishal.com.pk and @amirjahangir on X/Twitter.