Karachi [Pakistan], October 7 (ANI): Pakistan’s apparent economic recovery, often touted by government officials and market analysts, hides a far harsher reality for millions of its citizens. While the state emphasizes growth under the IMF program and the stock market reaches record highs, the World Bank’s latest assessment reveals that poverty and inequality are worsening across much of the country, according to The Express Tribune.
The World Bank’s Poverty and Resilience Report shows that despite signs of macroeconomic stability, household well-being has deteriorated sharply. Between 2001 and 2018, Pakistan’s poverty rate dropped from over 60 percent to around 21 percent. However, the pandemic, recurring political instability, and economic shocks have reversed much of that progress, pushing the poverty rate above 27 percent by 2023–24. Under the broader benchmark for lower-middle-income countries, nearly half of Pakistan’s population now lives below the poverty line.
The report highlights that rural Pakistan, particularly in Balochistan and interior Sindh, faces much greater deprivation than urban centers such as Islamabad and Lahore. Limited access to education, healthcare, and infrastructure continues to entrench this regional inequality. Malnutrition remains widespread, with nearly 40 percent of children under five stunted. Education outcomes are weak, leaving millions of future workers ill-prepared for productive employment.
Employment patterns further reveal the divide. Over 85 percent of Pakistan’s workforce operates in the informal sector, without contracts, benefits, or social protection. Women are disproportionately affected by this economic fragility. The report warns that even a 10 percent decline in household income could push millions back into poverty, given stagnant wages and volatile inflation.
While IMF-backed reforms have helped restore macroeconomic stability, these gains have yet to translate into real improvements in living standards. Foreign investors remain skeptical of the government’s optimistic outlook; many have withdrawn capital or reduced operations, citing weak demand and structural inefficiencies, according to The Express Tribune.
The World Bank has urged Pakistan to adopt policies that promote inclusion and resilience, including expanding social safety nets, improving education and healthcare, and implementing fiscal reforms that distribute the burden more equitably. The report concludes that Pakistan’s true progress must ultimately be measured not by rising market indices or IMF praise, but by tangible improvements in the lives of its citizens. (ANI)
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