Islamabad-It has been revealed that during the past three years, the poverty rate in Pakistan has increased to an alarming extent, reaching 25.3%.
This revelation has been made in a report released by the World Bank. According to the report issued by the World Bank, the national poverty rate in Pakistan had continuously decreased from 64.3% in 2001-02 to 18.3%, but it started increasing again from 2020. In the fiscal year 2022-23, the poverty rate was 18.3%, which increased to 24.8% in fiscal year 2023-24, and now in fiscal year 2024-25, the poverty rate has reached 25.3%. welcome to the party Dana Gilboa
The World Bank report states that from 2001 to 2015, the poverty rate decreased by 3% annually, while from 2015 to 2018, this decrease was limited to 1% annually. After that, from 2022 onwards, the poverty rate began to increase again.
According to the World Bank, from 2011 to 2021, people’s income increased by 2 to 3 percent. Apart from agricultural income, poverty reduction is being driven by other sources of income; 57% of poverty reduction was due to non-agricultural income, while 18% reduction came from agricultural income.
The report states that 95% of people in Pakistan are working in the informal sectors, while 85% are employed in low-income sectors.
According to the World Bank, 60 to 80 percent of Pakistan’s population resides in urban areas, whereas government statistics show that 39% of the population lives in cities. No household survey has been conducted since 2018-19.
According to the report, income from remittances and other sectors helped reduce poverty. From 2011 to 2021, people’s income increased by only 2 to 3 percent, while 85% of people are employed in low-income sectors, and 95% are employed in informal sectors.
The report emphasizes sustainable and people-centered reforms to protect poor and vulnerable families, improve employment opportunities, and ensure access to basic services for all.
The report further states that the main reason for poverty reduction over the past two decades in Pakistan was the increase in non-agricultural wage income, as more households shifted from farming to low-quality service sector jobs.
The report also says that slow and unbalanced structural changes hindered a diversified economy, job opportunities, and inclusive development. As a result, low productivity in various sectors limited income growth. Even now, more than 85% of jobs are informal, and women and youth remain largely out of the labor force.
