Rising Poverty Across Provinces
The World Bank has released a comprehensive report warning of a sharp increase in poverty across Pakistan since 2020. According to the findings, millions of families are struggling to meet basic needs as the country grapples with economic shocks, natural disasters, and inflationary pressures.
The report provides provincial breakdowns that paint a sobering picture. In Punjab, poverty stands at 16.3 percent. However, the World Bank notes that nearly 40 percent of the population experiences some form of deprivation, showing the hidden depth of vulnerability in the country’s most populous province.
Balochistan is the hardest hit, where 42.7 percent of residents live below the poverty line. In Khyber Pakhtunkhwa, poverty is estimated at 29.5 percent, while Sindh records 24.1 percent. Together, these figures reveal a nationwide crisis affecting diverse regions and communities.
Causes Behind the Poverty Surge
The World Bank attributes the rise in poverty to a combination of overlapping shocks and systemic weaknesses:
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COVID-19 Pandemic: The health crisis disrupted livelihoods and economic activity, pushing many households into financial insecurity.
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2022 Floods: One of the worst natural disasters in the country’s history, the floods devastated homes, crops, and infrastructure.
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Economic Instability: Persistent inflation, currency depreciation, and slowing growth have eroded household incomes.
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Weak Policies and Limited Jobs: Structural issues and a lack of sustainable job creation have left many without stable employment.
The 2022 Floods and Their Aftermath
The floods of 2022 affected an estimated 33 million people, according to the World Bank. Entire villages were submerged, farmland was destroyed, and critical infrastructure collapsed. The report estimates that the disaster led to a 5.1 percent rise in poverty, pushing an additional 13 million people below the poverty line in a single year.
Inflation and Cost of Living
In the fiscal year 2022–23, Pakistan recorded an inflation rate of 29.2 percent, one of the highest in the region. For ordinary citizens, this meant a dramatic decline in purchasing power. Basic food items, fuel, and utilities became unaffordable for many households, compounding the effects of stagnant wages and rising unemployment.
Human Development at Risk
The World Bank also warned of troubling social indicators. Around 40 percent of children under the age of five suffer from malnutrition. Additionally, one in three children is out of school, undermining future human capital and economic prospects.
These figures suggest that poverty is not only a matter of income but also of long-term development. Malnourished children and out-of-school youth represent a serious risk to Pakistan’s ability to break the cycle of poverty in coming decades.
Social Safety Nets Under Scrutiny
Despite the presence of the Benazir Income Support Programme (BISP)—one of Pakistan’s largest social safety nets—the World Bank found little evidence of significant poverty reduction. The report questions the program’s reach and effectiveness, suggesting that reforms are urgently needed to ensure assistance actually improves livelihoods.
A Growing Challenge for Policymakers
Pakistan’s poverty crisis is unfolding against a backdrop of political instability and economic uncertainty. The country is struggling with external debt, limited foreign reserves, and pressure from international lenders to implement tough reforms. At the same time, climate change poses an increasing threat, with experts warning that extreme weather events like floods and droughts are likely to become more frequent.
Unless structural reforms, effective disaster management, and stronger social protection measures are introduced, poverty levels may continue to rise. The World Bank’s findings highlight not just an economic emergency, but also a looming human development crisis.
