Pakistan Sees Seven Percent Increase in Poverty Rate

Islamabad: The poverty rate in Pakistan has risen sharply over the past four years, according to a new World Bank report. The data shows a seven percent increase in poverty since 2020. World Bank Country Director for Pakistan, Ms. Bolormaa Amgaabazar, shared the findings during a press briefing. She said the country’s poverty level reached 25.3% in 2023-2024, up from 18.3% in 2021-2022. The rise has sparked concerns about economic stability and living standards.

The report reveals that Pakistan’s poverty rate grew to 24.8% in 2022-2023 and continued to rise in the following year. This trend marks a major reversal from previous progress. Between 2015 and 2018, poverty was declining by 1% annually. Before that, the country had achieved a yearly 3% reduction in poverty until 2015. However, after 2020, the trend shifted, and poverty began climbing again.

The World Bank also noted that income growth has remained weak over the past decade. Between 2011 and 2021, income increased by only 2 to 3%, which was not enough to lift many out of poverty. Economic challenges, inflation, and slow development have contributed to the growing number of poor households. As a result, millions of people now struggle to meet basic needs.

The report further suggests that poverty reduction is closely tied to agricultural output and other sources of income. When agriculture performs well, poverty tends to decrease. However, poor performance in key sectors has worsened the situation. The World Bank stressed the need for stronger economic reforms to address rising inequality and hardship.

Experts now call for urgent policy action to support low-income groups and boost job creation. Without intervention, poverty could increase further in coming years. The report urges both federal and provincial governments to prioritize economic recovery. Pakistan’s leadership must take firm steps to protect its most vulnerable citizens and reverse this troubling trend.