Pakistan’s Poverty Rate Rises to 25.3%: World Bank Report
ISLAMABAD – September 23, 2025: Pakistan’s poverty rate has risen to 25.3%, up from 18.3% in 2022, according to the World Bank’s latest assessment, Reclaiming Momentum Towards Prosperity: Pakistan’s Poverty, Equity and Resilience. This marks the first comprehensive evaluation of poverty and welfare trends in the country since the early 2000s.
Key Findings
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Poverty increased steadily from 24.8% in 2023-24 to 25.3% in 2024-25, reversing two decades of decline.
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The rise is linked to COVID-19, inflation, floods, and macroeconomic stress, as well as limits of the previous consumption-driven growth model.
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Non-agricultural labor income helped reduce poverty over the last 20 years, but slow structural transformation, low productivity, and high informality (over 85% of jobs) have constrained inclusive growth.
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Human capital gaps are significant: nearly 40% of children are stunted, 25% of primary-school-aged children are out of school, and 75% of children who attend primary school struggle with basic reading comprehension.
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Rural poverty remains more than twice as high as urban poverty, with persistent regional disparities and low living standards in many districts.
Policy Recommendations
The report highlights four pathways to restore progress:
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Invest in people, places, and opportunities – including health, education, housing, water, and sanitation.
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Build household resilience – by strengthening safety nets for vulnerable populations.
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Adopt progressive fiscal measures – improving municipal finance and targeting investments for the poorest.
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Develop better data systems – for informed decision-making and tracking progress.
World Bank Country Director Bolormaa Amgaabazar emphasized:
“Protecting Pakistan’s hard-won poverty gains and expanding jobs and opportunities, especially for women and youth, is critical. With focused reforms, Pakistan can put poverty reduction back on track.”
The report underscores the need for inclusive growth, social protection, and improved public services to break cycles of poverty and ensure sustainable development across the country.
