Poverty rate in Pakistan rises to 44.7pc

Pakistan

Poverty rate in Pakistan rises to 44.7pc

World Bank revises global poverty benchmark

Updated On: Thu, 05 Jun 2025

21:39:00 PKT

ISLAMABAD (Dunya News) – The World Bank has updated its global poverty assessment criteria, pushing Pakistan’s poverty rate from 39.8 per cent to 44.7 per cent.

Under the new benchmark, individuals earning less than $4.20 per day are now considered poor in lower-middle-income countries, including Pakistan.

Previously, the poverty line stood at $3.65 per day.

According to this revised measure, an estimated 107.95 million Pakistanis are living in poverty. Although the poverty yardstick has changed, officials clarified that the standard of living remains unaffected—it’s the measurement that has shifted.

For extreme poverty, the income threshold is now set at $3 per day, placing 16.5 per cent of Pakistan’s population—approximately 39.8 million people—in this category.

The report also noted that Pakistan’s latest population census data was still pending, so the analysis is based on 2018–2019 data.

Furthermore, the updated global benchmarks define upper-middle-income poverty at $8.30/day.

By that scale, 88.4 per cent of Pakistanis fall below the threshold.

The World Bank’s reclassification paints a starker picture of Pakistan’s economic challenges, especially for low-income households struggling to make ends meet.

 

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