Produced by: Tarun Mishra
Designed by: Mohsin Shaikh
The World Bank's latest report reveals a stark increase in poverty levels in Pakistan, as more than 12.5 million individuals have fallen below the poverty line within the past year. This dramatic rise brings the total number of Pakistanis living in poverty to an alarming 95 million
Pakistan has experienced an alarming surge in poverty, with the rate jumping from 34.2% to a staggering 39.4% in just a single year. This rapid increase underscores the economic challenges faced by the nation
Pakistan currently holds the unenviable distinction of having the lowest per capita income among South Asian countries. The World Bank's report emphasises the critical need for Pakistan to take immediate and decisive actions to stabilise its economy, given the severity of the situation
The report reveals a disconcerting trend of low economic growth in Pakistan, with an average real per capita growth rate of a mere 1.7% between 2000 and 2020. This is less than half the average rate of 4% observed in South Asian countries
According to Tobias Haque, the World Bank's lead country economist for Pakistan, the nation is facing significant economic and human development crises. Haque highlights the urgency of major policy shifts to address these pressing issues
The report also underscores the influence of powerful vested interests, including those within the military, politics, and business sectors, on policy decisions in Pakistan
Pakistan's economic challenges are exacerbated by factors such as inflation, escalating electricity costs, severe climate shocks, and limited public resources for climate adaptation. These difficulties are particularly concerning, given Pakistan's vulnerability to the impacts of climate change
In its draft policy notes for Pakistan's next government, the World Bank recommends immediate actions, including taxation of agriculture and real estate, reduction of wasteful expenditures, and improvements in revenue collection
Despite grappling with economic hardships, Pakistan continues to allocate resources to expand its nuclear arsenal. This adds complexity to the country's financial situation, given the competing demands on its limited resources
The findings from the World Bank's report underscore the urgent need for Pakistan to address its economic challenges comprehensively. It highlights the necessity for implementing substantial reforms, prioritising the well-being of its citizens, and working toward economic stability amid rising poverty rates and a struggling economy