World Bank: Pakistan’s poverty rate rises to 29 per cent as inequality grows

ISLAMABAD: The poverty rate in Pakistan has risen to 29 per cent, according to a World Bank report. The gap between rich and low-income households has also widened.

The report says the poverty rate was 22 per cent in 2019, an increase of seven percentage points in six years. It estimates that about 72.6 million people were living below the poverty line in 2024.

The World Bank listed continued inflation, higher prices of essential goods, unfair distribution of resources and lower incomes for workers among the reasons for the rise. Low-income households have been hit hardest by these factors and find it difficult to meet their basic needs.

The report also points to a marked rise in income inequality. Pakistan’s score on the inequality index was 28.4 in 2018. It rose to 32.7 in 2025.

According to the report, about 23 per cent of the population, or more than 57.6 million people, live on less than $3 a day.

The report says real wages fell by an average of 3.4 per cent a year between 2018-19 and 2024-25. These figures show a situation contrary to the government’s claims of economic recovery.