World Bank Report Highlights Rising Poverty and Urgent Reforms Needed in Pakistan

A report from the World Bank has spotlighted a significant rise in Pakistan's poverty rate, urging immediate and inclusive reforms to protect the nation's most vulnerable populations, Dawn reports. According to data, poverty in Pakistan has surged by 7% over three years, reaching 25.3% in the fiscal year 2024-25.

The comprehensive report, "Reclaiming Momentum Towards Prosperity: Pakistan's Poverty, Equity and Resilience Assessment," marks the first extensive analysis of poverty in Pakistan in over 20 years, as detailed by Dawn's coverage. It incorporates 25 years of varied data, including household surveys and projections, offering a thorough perspective.

Dawn narrates a troubling trend: after a consistent decline in poverty from 64.3% in 2001-02 to 21.9% in 2018-19, rates have climbed since 2020. The World Bank attributes this trend reversal to overlapping crises, including the pandemic, inflation, severe flooding, and economic instability.

The previous reduction in poverty was largely driven by increased income from non-agricultural labor, with many transitioning to service jobs. However, Pakistan's slow structural shift has hampered job creation and growth. Informality dominates the labor market, with over 85% in informal jobs, and marginalization of women and youth persists.

Economic issues are compounded by social deficits. As Dawn reports, almost 40% of children are stunted, a quarter of primary-aged children are not enrolled in school, and most of those who are face educational challenges. Basic services remain a concern, with half lacking safe drinking water and one-third without safe sanitation.

The report also highlights persistent regional inequalities, with rural areas facing poverty rates more than double those in urban regions, and many districts remain underdeveloped. Dawn concludes with a call to address these ongoing disparities. (ANI)

(With inputs from agencies.)