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Aaj English TV

Wednesday, June 18, 2025  
22 Dhul-Hijjah 1446  

Pakistan’s poverty rate jumps to 44.7%

Anyone earning less than Rs1,200 a day in Pakistan now falls under the poverty category
Photo file
Photo file

The World Bank has introduced a new global poverty measurement standard, resulting in a significant rise in Pakistan’s official poverty rate—from 39.8% to 44.7%.

Under the revised benchmark, individuals in lower-middle-income countries like Pakistan earning less than $4.20 per day are now considered below the poverty line. Previously, the poverty threshold was set at $3.65 per day.

As per the new criteria, approximately 44.7% of Pakistan’s population—around 107.9 million people—are living in poverty. However, experts note that while the benchmark has changed, there has been no immediate change in people’s living conditions.

According to the World Bank, anyone earning less than Rs1,200 a day in Pakistan now falls under the poverty category. The analysis is based on household income data from the 2018-19 census, as the government has yet to release figures from the latest population census.

The extreme poverty line, under the revised standard, is now set at $3 per day. Based on this, 16.5% of Pakistan’s population—or over 39.8 million people—are living in extreme poverty.

Pakistan remains classified as a lower-middle-income country. For countries in this group, the World Bank has raised the poverty threshold from $2.15 to $3 per day. For upper-middle-income countries, the poverty line has been increased from $6.85 to $8.30 per day.

According to this measure, a staggering 88.4% of Pakistan’s population falls below the income level defined for upper-middle-income countries.

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