Pakistan faces 44.7% poverty while neighbours progress, reveals World Bank

Pakistan's poverty crisis continues to spiral out of control, with the World Bank's 2025 assessment revealing a shocking 44.7 per cent of the population living below the $4.20/day poverty line, according to Geo News.

This alarming figure exposes the failure of successive Pakistani governments to effectively address the rampant poverty afflicting nearly half of the nation's citizens.

The report further highlights that extreme poverty, defined by the World Bank's $3.00/day threshold, has surged to 16.5 per cent from a previously reported 4.9 per cent, demonstrating that millions more Pakistanis are sinking deeper into destitution. Meanwhile, the Multidimensional Poverty Index (MPI) indicates that over 30 per cent of Pakistan's population suffers from severe deprivation in health, education, and living standards.

In stark contrast, neighbouring countries like China, Bangladesh, and Nepal have managed to make meaningful progress in poverty alleviation through targeted strategies, industrial growth, and social reforms.

China has slashed its extreme poverty rate below 1 per cent, and Bangladesh's microfinance and garment sectors have propelled millions out of poverty despite recent setbacks. Even Nepal boasts a poverty rate below 2.2 per cent.

Pakistan's struggle is compounded by bloated social welfare programs like the Benazir Income Support Programme (BISP), which, despite increased funding, remain patchwork solutions unable to break the cycle of poverty. Overreliance on these handouts without integrating effective poverty graduation methods leaves millions trapped in dependency, as Geo News reports.

While the Pakistan Poverty Alleviation Fund (PPAF) has made some strides, empowering women entrepreneurs and disbursing millions in interest-free loans, its achievements remain isolated successes amid a vast sea of deprivation. The lack of a comprehensive, updated poverty database cripples targeted policymaking, leaving millions invisible to the state's welfare mechanisms.

Experts argue that without political will and institutional reform, Pakistan will continue to lag behind regional neighbours. Fragmented data systems, bureaucratic inefficiencies, and limited coordination among aid agencies undermine any meaningful progress.

Geo News further reported that to reverse these devastating trends, Pakistan must adopt data-driven policies inspired by global best practices, strengthen public-private partnerships, and scale up community-driven poverty graduation models. Without bold reforms, the nation risks remaining a poverty hotspot in South Asia, perpetually failing its most vulnerable citizens.