The World Bank has estimated that Pakistan’s poverty level has increased to 25.3 percent, with nearly 60 million people living below the poverty line, Jang reported. According to the World Bank Pakistan poverty report 2025, the country’s current development model has failed to bring significant change in poverty reduction from 2018 to 2024.
Pakistan Poverty Level 2025 Highlights
The World Bank stated that:
- Agriculture is shrinking
- Construction wages are falling
- Debt and fiscal deficits are rising
- And investment remains weak.
The report noted that Pakistan’s powerful elite influences economic policies for personal benefit, while millions of young people are leaving the country due to lack of opportunities. Poor communities are not finding jobs in transport, communication, and mining sectors, and local governments deliver poor services, leaving the tax burden mainly on low-income groups.
World Bank Pakistan Poverty Data vs National Figures
The report noted that the business confidence undermined by political instability and the Pakistan development model is not effective in dealing with increasing poverty. The World Bank Chief Economist Tobias Haque defended multilateral lending policies when asked about the flawed model-designed according to IMF and World Bank guidelines. He justified that in order to reduce poverty in Pakistan it needs macroeconomic stability, decreasing inflation, increasing income level, and liberalizing the economy.
The World Bank clarified that the Pakistan poverty line cannot be directly compared to the international poverty line. According to the World Bank International Poverty Index, the poverty rate in Pakistan stands at 45 percent, while the country’s official measurement places it at 25.3 percent.
The latest World Bank Pakistan poverty report shows that the poverty level in Pakistan continues to rise despite international financial support, signalling the need for stronger economic reforms and a more inclusive growth model.
