The World Bank has released its latest report on poverty in Pakistan, highlighting alarming trends in the country’s socio-economic situation. According to the report, between 60% and 80% of Pakistan’s total population resides in rural areas, while 39% live in cities.
The findings reveal that poverty in Pakistan has surged by 7% over the last three years. In 2022, the poverty rate stood at 18.3%, rising to 24.8% in 2023/24 and further climbing to 25.3% in 2024/25.
The report also traces the long-term trend, noting that between 2001 and 2015, poverty declined annually by around 3%. From 2015 to 2018, the decline slowed to just 1% per year. However, after 2018/19, no household survey was conducted. By 2022, the poverty rate began to rise sharply, with the COVID-19 pandemic in 2020 contributing to a significant spike in poverty levels.
In terms of income sources, the report highlights that non-agricultural income played a greater role in reducing poverty compared to agricultural income. Around 57% of poverty reduction was driven by non-agriculture income, while only 18% was attributed to agriculture. Additionally, remittances and other income sources also contributed to lowering poverty.
The World Bank report further underlines that between 2011 and 2021, overall income levels in Pakistan rose by only 2 to 3%. During this period, 85% of people in low-income sectors remained employed, while 95% of the workforce was engaged in informal sectors, reflecting structural weaknesses in the economy.
