ISLAMABAD: Pakistan’s decades-old growth model has reached its limits, leaving millions vulnerable as poverty rises again after years of decline, according to a new World Bank report.
The report highlights stark social realities: nearly 40 percent of children are stunted, one in four of primary school age remains out of school, and three-quarters of those completing primary education cannot read a simple story. These figures, unchanged for years, underscore that even during periods of high economic growth, the benefits have not reached the poor.
Between 2011 and 2021, real wage growth for low-income sectors remained minimal—just 2–3%—making it impossible for vulnerable groups to translate growth into better livelihoods. Instead, most poverty reduction during the 2000s came from informal, low-quality jobs in services and construction rather than opportunities in the formal economy.
“The urgency is not about growth; it is about reform,” the report stresses, noting that Pakistan’s economy has failed to create enough jobs for youth, empower women, or narrow urban-rural disparities.
The World Bank recommends a range of measures, including improved public service delivery, empowered and fiscally resourced local governments, stronger social safety nets, and modernized data systems for evidence-based policymaking.
Analysts argue that lack of reliable data remains a major barrier. While Pakistan regularly publishes detailed statistics on debt and external trade, basic data on health, education, power, and employment remain scarce, outdated, or buried in technical reports. Regular, standardized, and transparent data release could drive accountability, they say, and provide clear benchmarks for reform.
“Large swathes of the state operate in the dark,” the report cautions, adding that without transparency, accountability and reform remain elusive.
Experts say that unless the government prioritizes reform, strengthens transparency, and ensures equitable access to opportunities, Pakistan risks entrenching poverty and inequality despite short-term spurts of growth.