ISLAMABAD – Poverty in Pakistan has worsened significantly, with 44.7% of the population now living below the poverty line, according to a recent World Bank report. This marks a steep rise from 39.8%, reflecting the economic strain facing millions of households.
The World Bank revised its poverty benchmark for lower-middle-income countries to $4.20 per person per day, up from the previous $3.65. Based on this new standard, an estimated 90 to 95 million Pakistanis are living in poverty. The report also highlights that 16.5% of the population earns less than $3 per day, placing them in the extreme poverty category.
According to the report, Pakistan’s middle-income class is also shrinking, with 88.4% of the population earning less than $8.50 per day. Economic hardships such as high inflation, low wages, currency devaluation, and rising unemployment are pushing more people below the poverty line.
These figures are based on the 2017 census, which reported Pakistan’s population at 206 million. However, the 2023 census places the population at over 241 million, indicating that actual poverty numbers are likely higher than reported.
This surge in poverty poses serious challenges for the government’s economic planning. Experts are urging targeted welfare programs, job creation, and food subsidies to prevent the situation from worsening further — especially as inflation continues to rise ahead of the upcoming national budget announcement.