Islamabad [Pakistan], September 23 (ANI): The World Bank has raised concerns over Pakistan’s rising poverty rate, stressing the need for long-term, inclusive reforms to protect the country’s most vulnerable communities, according to Dawn.
The latest report indicates that Pakistan’s poverty rate has increased by 7% over the past three years, reaching 25.3% in 2024-25. Titled “Reclaiming Momentum Towards Prosperity: Pakistan’s Poverty, Equity and Resilience Assessment,” the study represents the first in-depth examination of poverty and welfare in Pakistan in over two decades. It draws on more than 25 years of household survey data, spatial analysis, projections, and administrative sources.
Dawn reported that after a steady decline from 64.3% in 2001-02 to 21.9% in 2018-19, the national poverty rate has been rising since 2020. The World Bank attributes this reversal to overlapping crises, including the COVID-19 pandemic, inflation, severe flooding, and macroeconomic instability. Earlier poverty reduction gains, driven by a consumption-led growth model, have now plateaued.
The report highlights that much of the initial decline in poverty came from increased income from non-agricultural labour, as many families moved from farming to service-sector jobs. However, Pakistan’s structural transformation has been slow and uneven, limiting job creation, economic diversification, and productivity growth. Informal employment remains dominant, accounting for over 85% of jobs, with women and youth largely excluded from the labour force.
Beyond economic concerns, the study underscores severe social deficits. Nearly 40% of Pakistani children are stunted, a quarter of primary-aged children are out of school, and three-quarters of those attending school struggle with basic reading comprehension. Access to basic services remains inadequate: by 2018, only half of households had safely managed drinking water, and nearly one-third lacked access to safe sanitation.
The World Bank also noted persistent regional disparities. Rural poverty remains more than twice the rate of urban areas, and many historically underdeveloped districts continue to face long-standing challenges, Dawn reported.
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