KARACHI: Impacts of poverty and economic difficulties in Pakistan The World Bank’s latest assessment report provides a detailed overview of poverty trends in the region and the economic pressures facing Pakistan.
According to the World Bank, the economic shocks of the past few years have increased the pressure on low-income households in Pakistan. Inflation, limited employment opportunities, and weak income growth have increased the difficulties of the poor and low-income groups.
The report states that Pakistan has faced several major challenges, including the Covid-19 pandemic, the devastating floods of 2022, inflation, and economic instability. These factors have affected the purchasing power and economic security of households.
The World Bank has used the international line of $3 a day to measure poverty. This standard is set in 2021 purchasing power parity. The World Bank had increased this global poverty line from $2.15 to $3 in June 2025.
According to the latest World Bank data on Pakistan, the poverty rate under the $3 a day standard was about 23% in 2024. According to the organization, these figures are compiled on the basis of new surveys and revised global scales.
The report also makes it clear that poverty is not just a matter of income. Employment opportunities, basic amenities, inflation, and the ability to cope with economic shocks also affect the economic condition of households.
The World Bank’s previous comprehensive assessment report on Pakistan also said that poverty increased again after 2018-19, in which factors such as COVID, inflation, floods, and economic stress played a role.
According to the latest global assessment, the trend of extreme poverty in the Middle East, North Africa, Afghanistan, and Pakistan region is increasing, unlike many other regions. According to the World Bank, the region’s extreme poverty rate was over 10 percent in 2024 and is expected to decline slightly by 2026.
The challenge for Pakistan now is to maintain economic stability while creating employment and income opportunities that better protect low-income households from rising prices and other economic shocks.
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