The recent World Bank revelation that nearly 45 percent of Pakistan’s population lives below the poverty line is deeply alarming, though hardly unexpected. Even more concerning is the surge in extreme poverty, which has increased from 4.9 percent to 16.5 percent. These figures are derived from a 2018-19 household survey and therefore do not reflect the grave consequences of the 2022 floods or the staggering inflation witnessed over the past two years. The absence of updated household income surveys since 2019 raises serious concerns about the accuracy of official poverty statistics, which are likely to be even worse today.
The World Bank has clarified that the dramatic rise in poverty figures is largely due to the revision of global poverty lines rather than a sudden economic collapse. About 82 percent of the increase is attributed to the updated benchmarks, while the rest is explained by inflation between 2017 and 2021. Nevertheless, the persistence of poverty trends signals deeper, structural challenges that go beyond mere recalculations of thresholds.
Stagnant economic growth, spiraling living costs, and climate-induced disasters have together driven millions of low-income households closer to, or beneath, the poverty line. The World Bank’s forthcoming poverty and resilience assessment—scheduled for release in September—is expected to provide a clearer picture of poverty dynamics, spatial disparities, and fiscal equity across the country. But waiting for these findings without proactive measures would be a disservice to those already suffering.
The increasing poverty rate is not an inevitable outcome. It can be reversed—but only through well-planned, targeted interventions backed by strong political will. Effective poverty alleviation requires coordinated policies across federal, provincial, and local governments. The misuse of public funds, poor governance, and misaligned priorities must be urgently addressed if any real change is to occur.
Pakistan can draw important lessons from China’s experience, where a combination of targeted social policies, rural development, infrastructure investment, and consistent political commitment helped lift hundreds of millions out of poverty. Similar initiatives, adapted to Pakistan’s unique context, could be transformative if implemented with seriousness and transparency.
The worsening poverty crisis should serve as a wake-up call for the nation’s leadership. It is not just an economic issue but a matter of national dignity and social stability. Without swift, targeted, and coordinated action, the divide between the rich and poor will continue to grow, undermining the very foundation of national progress. Now is the time to act—not with hollow promises, but with firm policies that deliver.
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