Islamabad: Pakistan’s hard-won progress in reducing poverty has suffered a sharp reversal, with the World Bank reporting that recent economic shocks and weak structural reforms have pushed millions back below the poverty line. Once praised for a significant decline in poverty from 64% in 2001 to 22% in 2015, the country now faces renewed economic vulnerability, with poverty rising to 25% in 2024.
The World Bank report identifies multiple factors behind this reversal. Natural disasters, such as the catastrophic floods of 2022 and 2025, have devastated agricultural land, disrupted supply chains, and displaced thousands, undermining livelihoods particularly in rural areas. Simultaneously, global challenges including the economic fallout from the Ukraine war and surging inflation have increased the cost of living, further straining household incomes. The lingering effects of the COVID-19 pandemic have also contributed to rising unemployment and reduced informal sector earnings, leaving many families teetering just above the poverty threshold highly vulnerable.
Structural weaknesses within Pakistan’s economy have exacerbated the situation. Low productivity in labor-intensive sectors, inadequate public services, and limited access to quality education and vocational training have prevented the creation of a sustainable framework for poverty alleviation. The report warns that without systemic reforms, short-term relief measures are unlikely to secure long-term economic resilience.
In response, the government has expanded welfare programs and initiated job creation schemes, seeking to cushion the impact of these shocks. Yet experts caution that these efforts are insufficient without deeper reforms focused on improving sectoral productivity, enhancing social services, and strengthening institutions to support inclusive growth. The World Bank emphasizes that only a robust, diversified economic model can prevent further setbacks and ensure sustainable poverty reduction.
The report also highlights the human cost behind the statistics. Millions of Pakistanis now face food insecurity, limited healthcare access, and disrupted education, challenges that hit the most vulnerable communities hardest. Urban workers in informal sectors and rural households dependent on agriculture are particularly at risk, underscoring the fragility of the economic gains achieved in previous decades.
As Pakistan navigates these intersecting crises, the World Bank calls for both domestic reform and international support. Investment in resilient infrastructure, social safety nets, and human capital development is seen as essential to protect against future shocks and to prevent the erosion of decades of progress in poverty reduction.
The situation paints a stark picture of an economy under pressure, illustrating that while past achievements demonstrate potential, sustainable growth will require a combination of structural reform, crisis preparedness, and strategic governance. Without such measures, millions of Pakistanis risk being trapped in cycles of vulnerability and deprivation for years to come.