World Bank paints a gloomy picture of the world

Morning and Ramadan Mubarak! As Muslims around the globe begin this month of spiritual reflection and devotion, it's also time to gear up for a month-long battle against procrastination. That post-Iftar food coma is no joke, and it's too tempting to put off work until tomorrow, and then the next day, and so on... for the entire month.

In this week’s edition:

🌐 World Bank painting a gloomy picture of the world

❌ IMF wants to stay away from Pak’s domestic politics

⚔️ US congress Vs Tik Tok’s CEO

📡 Elon Musk’s Starlink’s launch in Pak

- The Itla Squad 💼

Business

Global 🌎️

World Bank paints a picture of a world with no bank

In its latest report, the World Bank assesses the potential long-term output growth rates post the COVID-19 pandemic and the Russian invasion of Ukraine. According to the report, the global economy's "speed limit" or maximum growth rate without causing inflation, is expected to hit a three-decade low by 2030.

In numbers: The report highlights that the economic factors that have been driving growth for the past 30 years are diminishing. As a consequence, from 2022 to 2030, the global potential GDP growth is predicted to decline by around one-third compared to the rate seen in the early 2000s, resulting in an average annual growth rate of 2.2%.

But why? Various factors, including the impacts of the pandemic and Russia's invasion of Ukraine. These factors have led to reduced productivity and labor force growth, as well as a decrease in international trade.

It’s not all hopeless: The report also says implementing sustainable and growth-focused policies can increase potential GDP growth by up to 0.7 percentage points, resulting in an average annual rate of 2.9%.

TLDR: The World Bank's latest report predicts a decline in the global economy's maximum growth rate without causing inflation by 2030. The report suggests the implementation of sustainable policies could increase potential GDP growth to an average annual rate of 2.9%.

What else is new in news

✶ Disney CEO Bob Iger announced on Monday through an internal memo that the company will be notifying affected employees about layoffs this week.

Local 🇵🇰

IMF on Pak’s election drama: I don’t get paid enough for this sh*t

IMF seems to be learning from the whole Hailey Bieber Vs Selena Gomez feud and wants its life drama-free. IMF has made it clear that it wants to stay away from Pakistan's domestic politics as it states that the decisions about provincial and general elections in Pakistan are entirely up to the country's institutions and clarified that its program does not impede Pakistan's ability to conduct constitutional activities.

Rewind: This statement from the fund was just after the Election Commission of Pakistan (ECP) postponed the Punjab Assembly elections for over five months. The ECP attributed the delay to financial and security limitations, stating that the country is going through an economic crisis due to insufficient funds and the compulsion of meeting the targets set by the IMF program.

What now? As per IMF, the finalization of the fuel subsidy program and other outstanding issues will pave the way for a staff-level agreement.

TLDR: After ECP postponed the Punjab Assembly elections, the IMF reminded Pakistan that its program does not impede the country's ability to conduct constitutional activities and that political decisions are entirely up to Pakistan's institutions.

News Flash

✶Pakistanis should get ready to enjoy the joys of global trade as Pakistan has lifted its import restrictions on 826 items that were previously imposed between 2017 and 2022.

Tech

Global 🌎️

We envy billionaire tech CEOs …until they have to face the congress

TikTok’s CEO Shou Chew might know all the latest dance crazes, but even he couldn't dance his way out of Congress's tough questions last Thursday. Congress wasn't convinced by his reassurances that the company was taking good care of US user data, and they had some serious doubts about whether the app had any links to China. We love our readers too much to have them watch a five-hour video so here are some key takeaways:

• TikTok's impact on children was a major focus. Chew mentioning that his own children don’t use Tik Tok didn’t help much (his reasoning: because they live in Singapore and there the version of the app for children younger than 13 is not available).

• Chinese engineers at ByteDance (Tik Tok’s parent company) do have access to US user’s data

• Mr. Chew sees no difference in data collection practices by Tik Tok and those of US tech giants. However, when asked specifically about how TikTok uses user data, Chew proved that he can bite too: "With all due respect, American companies don't have a great track record with data… Just look at Facebook and Cambridge Analytica."..shots fired.

What now? The fate of TikTok in the US hangs in the balance, with two possible scenarios. The app could either be banned or explore options for addressing data security concerns through technical solutions, as negotiations continue.

TLDR: TikTok CEO faced tough questioning on data privacy and child safety before Congress. He defended the app's data collection practices but also criticized US companies' track record. As the US-China conflict over TikTok's sale continues, the app could face a ban or revisit negotiations for data security.

What else is new in news

✶Mukesh Ambani's Reliance Jio is taking the phrase "aim for the stars" quite literally with their 100,000 telecom towers to roll out their super-fast and wide-reaching 5G network in India.

Local 🇵🇰

Elon Musk’s Starlink to reach for the stars in Pak’s remote areas

The Securities and Exchange Commission of Pakistan (SECP) has officially registered Elon Musk's satellite broadband service, Starlink.

If Jack had Starlink, he could have streamed 'My Heart Will Go On' instead of risking hypothermia on that door. Starlink promises internet access almost anywhere, including at sea with a $5,000 per month plan. However, the real value of Starlink lies in its potential to bridge the digital divide between urban and rural areas, particularly in Pakistan where many rural regions lack high-speed internet infrastructure and could significantly impact the country's economy.

Hold your celebration: Life’s not all rainbows and beautiful stars even where starlink is involved. While Musk’s service just got registered in Pakistan, it has been functional in Brazil since last year and it may be wise to see how their experience is going.. (we did and it’s not great).

What happened in Brazil? Starlink's high-speed internet has become a useful tool for Brazil's illegal miners, allowing them to coordinate logistics more efficiently. In the past, they used satellite internet, which required a technician to install a fixed antenna that was difficult to move. With Starlink, the process is now DIY, and the equipment is mobile, making it easy to relocate or hide and Brazil's illegal miners are loving it.

TLDR: The Securities and Exchange Commission of Pakistan has registered Elon Musk's satellite broadband service, Starlink. Starlink has the potential to bridge the digital divide between urban and rural areas, improving internet access and potentially boosting Pakistan's economy.

Tech tour of news

✶No need to wait in long queues or deal with cranky government officials - Pak-ID is to our rescue. NADRA has launched a new app called Pak-ID that lets you apply for your National Identity Card from the comfort of your own home.

More interesting Itla (اطلاع) we consumed:

💵 If you thought the only thing scarier than a job interview was talking about money afterward, you're not alone. But according to Money Scoop, it's time to face your fears and embrace the salary talk with this super helpful guide.

💔 We recently had a tough time trying to comfort a grieving loved one, and it made us realize how challenging it can be to find the right words in such situations. This article from The Guardian details the 16 empathic and beautiful ways to talk to people who are grieving.