ISLAMABAD: The World Bank has sounded the alarm over Pakistan’s worsening economic conditions, revealing that poverty has reached record levels despite repeated government claims of stability and growth.
According to the latest report, poverty has risen sharply over the past three years. In the fiscal year 2022-23, the poverty rate stood at 18.3 percent. By 2023 it had jumped to 24.8 percent, and in 2025 it has climbed further to 25.3 percent.
World Bank Country Director for Pakistan, Bolormaa Amgaabazar, explained that while household incomes grew by 2 to 3 percent annually between 2011 and 2021, helping to reduce poverty during that period, those gains have now been reversed.
Earlier poverty reduction was driven largely by non-agricultural income sources, which accounted for 57 percent of the decline, while agriculture contributed only 18 percent.
The report highlights that nearly 95 percent of Pakistan’s workforce remains trapped in the informal sector, and 85 percent of employees are engaged in low-income jobs.
From 2001 to 2015, poverty declined at an average rate of 3 percent annually, but between 2015 and 2018, this rate slowed to just 1 percent. Since 2022, poverty has been rising again at an alarming pace.
It also points to a striking gap in demographic data. Government statistics suggest that only 39 percent of the population lives in urban areas, while the World Bank estimates the figure to be between 60 and 80 percent, raising questions about official reporting.
The findings present a sobering picture of Pakistan’s economy, underlining that poverty continues to deepen even as the government promotes a narrative of recovery and progress.
