World Bank report highlights rising rate of poverty in Pakistan
The World Bank has reported that Pakistan’s poverty
rate surged to 25.3% in the fiscal year 2023-24, up from 18.3% in 2021-22,
reversing years of steady decline.
According to the Bank’s latest assessment, “Reclaiming Momentum Towards Prosperity: Pakistan’s Poverty, Equity and Resilience Assessment”, the increase is driven by compounding shocks including COVID-19, inflation, floods, and macroeconomic stress, as well as structural weaknesses in the consumption-driven growth model that previously reduced poverty.
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The report notes that non-agricultural labor income, informal sector jobs, and remittances contributed to past poverty reductions, but low productivity, limited public services, and inequality have left many households vulnerable. Over 85% of jobs remain informal, and women and youth continue to face exclusion from the labor market.
Human capital development lags significantly, with nearly 40% of children stunted, one-quarter of primary-aged children out of school, and 75% of attending children unable to read a simple story by the end of primary school. Access to basic services, such as drinking water and sanitation, remains inadequate.
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The World Bank emphasizes structural reforms as essential to restore poverty reduction, including investing in health, education, housing, water, and sanitation, expanding access to jobs and opportunities, strengthening safety nets, improving fiscal management, and developing timely data systems.
“It will be critical to protect Pakistan’s
hard-won poverty gains while accelerating reforms that expand jobs and
opportunities—especially for women and young people,” said Bolormaa Amgaabazar,
World Bank Country Director for Pakistan.
The report outlines four key pathways
to tackle poverty:
1.
Invest in people, places, and
opportunities, especially for disadvantaged groups.
2.
Build household resilience against
shocks through responsive safety nets.
3.
Implement progressive fiscal
reforms, phase out wasteful subsidies, and prioritize investments for the poor.
4. Strengthen data systems for informed decision-making and resource targeting.
Source: The Nation