World Bank Reports Pakistan Poverty Rate Rises to 25.3% Amid Economic Shocks

The World Bank's recent comprehensive assessment reveals that Pakistan's poverty rate has risen sharply to 25.3% in 2024-25, reversing nearly two decades of steady decline from 64.3% in 2001-02 to 21.9% in 2018-19. This increase, driven by compounding shocks such as the COVID-19 pandemic, devastating floods, inflation, and macroeconomic instability, highlights the limits of Pakistan's previous consumption-driven growth model. The report emphasizes that the economic gains largely came from rising non-agricultural incomes and off-farm employment; however, real wage growth has stagnated, and structural weaknesses like poor access to education, healthcare, and sanitation persist. Geographic disparities remain significant, with rural areas and provinces like Balochistan experiencing poverty rates above 40%. The World Bank calls for sustained, people-centered reforms aimed at expanding access to quality services, protecting vulnerable households from shocks, and creating better jobs, especially for the bottom 40 percent, to break cycles of poverty and restore inclusive economic growth. These findings underscore the urgent need for Pakistan to invest in human capital, strengthen resilience, and improve fiscal and data systems to reclaim momentum towards prosperity.