The World Bank has updated its global poverty benchmarks, and the new metrics paint a grim picture for Pakistan.
According to the latest classification, over 100 million Pakistanis now fall below the poverty line, marking a sharp increase from previous estimates.
Under the revised criteria, individuals in lower and middle-income countries earning less than $4.20 per day are now considered poor—up from the previous threshold of $3.65. Based on this change, Pakistan's poverty rate has surged to 44.7%, compared to 39.8% under the old system. This means approximately 107.95 million Pakistanis are now officially living in poverty.
The World Bank clarified that while the definition has changed, it doesn't necessarily reflect an immediate drop in living standards. The adjustment is meant to offer a more realistic picture of poverty amid rising global costs and inflation. However, the bank also noted that the data is based on the 2018-19 household survey, as Pakistan has yet to release the findings from its most recent national census.
The redefined extreme poverty line—now set at $3 per day, up from $2.15—reveals that 16.5% of Pakistan's population, or around 39.8 million people, are living in extreme poverty. In Pakistan’s context, anyone earning less than PKR 1,200 per day is now categorized as poor.
For upper-middle-income countries, the poverty threshold has been increased to $8.30 per day. Alarmingly, 88.4% of Pakistan’s population earns below this mark, underscoring the serious economic challenges the country faces.
The World Bank continues to classify Pakistan as a lower-middle-income country, and the report links rising poverty to multiple factors—economic instability, skyrocketing inflation, and natural disasters. The 2023 floods alone devastated crops and infrastructure, pushing millions deeper into poverty.
The revised poverty measurement serves as a wake-up call. With over 100 million Pakistanis now classified as poor, the country faces a growing need for sustainable economic policies and urgent social support systems.
