Pakistan's poverty climbed to 25% after years of decline: WB

Pakistan's sharp decline in poverty has stalled in recent years due to economic shocks and a lack of structural reforms, the World Bank (WB) said.

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The international lender has projected Pakistan's poverty rate at 25.3 per cent, indicating more than 60 million people are living in the cruel clutches of poverty.

The WB said that Pakistan's current economic growth model does not support poverty reduction, causing income gains to stall, with poverty already at an eight-year high in 2024.

The "Reclaiming Momentum Towards Prosperity: Pakistan's Poverty, Equity and Resilience Assessment" report by the World Bank further disclosed that the aspiring middle class, which constitutes 42.7% of the population, is "struggling to achieve full economic security."

"The aspiring middle class is facing significant non-monetary deprivations, such as limited access to safe sanitation, clean drinking water, affordable energy and housing," the World Bank said, adding that this points to "poor public service delivery in Pakistan."

A troubling fact is that 37% of Pakistan youth, aged between 15 to 24 years, are not employed or participating in education or training because of high demographic pressures and misalignment of labour demand.