Pakistan's Economic Illusion: Stability Claims Clash with Rising Poverty

The ongoing narrative of stability in Pakistan's economy, as advanced by official sources, starkly contrasts with the socio-economic hardships faced by a significant portion of the population. Despite notable claims of a steadier exchange rate, increased foreign inflows, and a rejuvenated stock market, the personal economic struggles of ordinary citizens tell a different story.

According to The Express Tribune, a World Bank report titled 'Reclaiming Momentum Towards Prosperity: Pakistan's Poverty, Equity and Resilience Assessment (2025)' reveals an alarming rise in poverty levels. The national poverty rate has exceeded 25.3% in the fiscal year 2023-24, thrusting about 13 million individuals into poverty. The report further underscores that nearly 44.7% of Pakistanis live in deprivation by international standards, a regression from past improvements.

These developments are attributed to structural weaknesses and recent shocks, such as the COVID-19 pandemic, soaring global commodity prices, and catastrophic floods in 2022. Inflation, a persistent challenge, has exacerbated the situation, with consumer prices jumping 31.4% in September 2023. The World Bank advises against overreliance on austerity, urging policy shifts towards expansive social safety measures, job creation, and tax reforms to break the cycle of 'paper stability' and ground-level poverty.

(With inputs from agencies.)