TRADE & ECONOMY

World Bank: 44.7% Pakistanis Now Below Poverty Line

Alarming rise in poverty: 44.7% of Pakistanis now live below the poverty line—up from 39.8%. The World Bank revised its poverty benchmark from $3.65 to $4.20/day. 16.5% live on just $3/day.
2025-06-06
World Bank: 44.7% Pakistanis Now Below Poverty Line

The World Bank has revealed that 44.7% of the country's population now lives below the poverty line, marking a sharp increase from 39.8% in the previous assessment.

According to the latest figures, the World Bank has revised its global poverty threshold for lower middle-income countries from $3.65 to $4.20 per person per day, adjusting for inflation and cost of living changes. This revision reflects a more accurate picture of financial hardship and minimum income needs.

📊 Key Findings of the Report:

·       Poverty Rate:

o   Increased to 44.7%, from 39.8%

·       Extreme Poverty:

o   16.5% of Pakistanis earn just $3 or less per day

·       Upper Middle-Income Benchmark:

o   $8.50/day category includes 88.4% of the population, indicating a vast majority living below higher global income standards

·       Benchmark Based on 2017 Population Data:

o   The analysis uses population data from 2017, potentially underestimating the actual poverty burden in 2025

📉 Implications:

The new statistics paint a troubling picture of widening inequality and economic distress. Rising inflation, unemployment, and currency devaluation are contributing to the deterioration of real incomes for millions of families.

Economists warn that without targeted social protection programs, investment in job creation, and price control measures, the poverty crisis could deepen further—affecting not only rural communities but also urban working-class households.

The data also highlights the growing pressure on the government to deliver relief under the framework of IMF programs and rising public debt.