Govt contests World Bank poverty report

Meanwhile, the World Trade Organisation on Thursday sharply raised its global trade growth forecast for 2026 - with merchandise trade riding the AI boom - and concluded that some nations, including Pakistan, were actually benefiting from trade disruptions amid the ongoing Middle East conflict in some ways.

In its Global Trade Outlook Update 2026, the Geneva-based global trade watchdog said its economists had upgraded their forecasts for global merchandise trade volume growth to 3.9 per cent for 2026 and 4.1pc for 2027 - up from previous estimates of 1.9pc and 2.6pc, respectively, projected at the start of the US-Iran conflict in March.

The report said that despite the conflict, the global economy had remained resilient, reflecting a stronger-than-expected surge in AI-related capital investment and increased supplies of fuels and fertilisers from countries outside the Middle East.

While several countries faced fuel transport disruptions because of the closure of the Strait of Hormuz, the redistribution of traffic was creating opportunities for various other economies, it said. "For example, Pakistan's exports of sea freight transport services rose by 73pc year-on-year in the first half of 2026, as its transport operators benefited from increased traffic," the WTO said.

Vessel calls at major container terminals in Karachi were still 14pc higher year-on-year in July, it added.