The World Bank reports that almost 40% of the population in Pakistan is now living in poverty.

In the last year, over 12.5 million people in Pakistan have become poor, bringing the total number of people living in poverty to nearly 40% of the country’s population. The World Bank has urged Pakistan to take immediate action to stabilize its economy.

The poverty rate in Pakistan has increased from 34.2% to 39.4% within a year, with an additional 12.5 million people earning less than $3.65 per day.

Now, about 95 million people in Pakistan are living in poverty. The country has the lowest income per person in South Asia and the highest number of children not attending school worldwide.

Between 2000 and 2020, Pakistan’s average income growth per person was only 1.7%, which is less than half of the average growth rate (4%) for South Asian countries. In the 1980s, Pakistan had one of the highest incomes per person in South Asia, but now it’s one of the lowest.

Tobias Haque, the World Bank’s lead economist for Pakistan, said that the country is facing serious economic and human development problems and needs major policy changes. He said that Pakistan’s economic model is no longer reducing poverty and that living standards have fallen behind other countries.

What are some of the causes of poverty in Pakistan?

There are several causes of poverty in Pakistan:

1. **Destabilization of democracy and rampant corruption**: These political factors have led to economic instability and mismanagement³.

2. **Rapidly growing population**: A high population growth rate can strain resources and infrastructure, leading to increased poverty³.

3. **Poor state of the education sector**: Lack of access to quality education can limit opportunities for income and employment³⁴.

4. **Ineffective management of natural resources**: Mismanagement or overexploitation of natural resources can lead to environmental degradation and economic hardship³.

5. **Feudalism**: This social structure can perpetuate inequality and poverty³.

6. **Uncontrolled inflation**: High inflation can erode purchasing power, especially for the poor³.

7. **Lack of access to credit and training in income-generating activities**: These factors can limit economic opportunities, especially in under-served rural and urban areas⁴.

8. **International factors**: Global financial crises, increases in oil prices, and global food crises can also contribute to poverty in Pakistan³.

These are just a few of the many complex factors that contribute to poverty in Pakistan.