Published: 04:32 PM, 17 June 2025
A nation in distress: 45% of Pakistan’s population now lives below the poverty line, reveals World Bank
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In a sobering revelation that lays bare the scale of Pakistan’s deepening economic crisis, the World Bank has reported that nearly 45% of the country’s population is now living below the poverty line. This translates to over 100 million people struggling to afford the most basic necessities of life—food, shelter, healthcare, and education.
The report, released recently, has cast a stark light on the human toll of prolonged political instability, economic mismanagement, and social neglect in a country once touted as a rising South Asian economy. This staggering figure not only signals an erosion of household incomes and purchasing power but also hints at a broader humanitarian emergency unfolding across Pakistan.
From urban slums to rural heartlands, millions are trapped in a daily battle for survival, with dwindling resources and fading hope.
A decline decade in the making
While the current poverty spike may appear sudden, economists and analysts point to a long-term trajectory of structural weaknesses in Pakistan’s economy. Periodic debt crises, sluggish industrial growth, overreliance on imports, and a narrow tax base have left the country vulnerable to both domestic and global shocks. Combined with political volatility and a bloated, inefficient bureaucracy, these conditions have hindered sustainable economic progress.
In its recent report, the World Bank cited inflation, unemployment, and currency depreciation as critical accelerators of poverty in the past few years. As prices of essentials—wheat, rice, fuel, electricity—continue to soar, real incomes have fallen sharply, making it nearly impossible for low- and middle-income families to maintain even the most modest standard of living.
The Pakistani rupee, which has experienced repeated devaluations, has further weakened the purchasing power of citizens. For families surviving on day wages, even minor fluctuations in fuel or food costs can spell disaster. In such a fragile ecosystem, the widening poverty footprint is both a cause and a consequence of the country’s economic fragility.
Urban hardship, rural desperation
The poverty crisis in Pakistan is not confined to one region or class—it cuts across urban and rural boundaries. In major cities like Karachi, Lahore, Rawalpindi, and Islamabad, rising rents, food inflation, and job losses have pushed millions into informal labour and precarious living. The once-thriving middle class is increasingly slipping into poverty, burdened by unaffordable healthcare, skyrocketing school fees, and mounting household debt.
In rural areas, the situation is even more dire. Large parts of Balochistan, Sindh, and South Punjab have seen poverty levels rise above 60%, exacerbated by droughts, floods, and poor infrastructure. In provinces where agriculture is still the main livelihood, unpredictable weather patterns and lack of government support have left farmers vulnerable to ruin. Small landholders and sharecroppers are often at the mercy of loan sharks, while many migrate to cities in search of work—only to end up in slums with no safety nets.
The World Bank report also notes a sharp decline in nutrition and access to basic services in these regions. Malnourishment, illiteracy, and lack of clean drinking water are endemic in many villages. For children born into these conditions, the cycle of poverty begins before birth and persists into adulthood, with few opportunities for upward mobility.
Inflation: The silent killer
Perhaps the most crushing factor behind Pakistan’s poverty explosion is inflation, which has remained in double digits for the past several years. With consumer prices rising by as much as 30–40% in certain categories, the cost of living has outpaced wage growth by a staggering margin. Staples like wheat flour, cooking oil, sugar, milk, and vegetables have become unaffordable for many families. Even middle-income households now report having to cut back on meals, healthcare, and school expenditures.
Fuel and electricity tariffs—often adjusted to meet International Monetary Fund (IMF) loan conditions—have added to the burden. Frequent hikes in utility prices mean that even basic household expenses now consume a disproportionate share of monthly incomes. For daily wage earners, such as rickshaw drivers, construction workers, and street vendors, there is often nothing left to save or invest in the future.
A generation at risk
The long-term social costs of this deepening poverty are equally alarming. The World Bank’s findings suggest that millions of children are growing up without access to education, nutrition, or healthcare, severely limiting their life chances. With nearly 40% of children in Pakistan suffering from stunted growth, the country faces a ticking time bomb of underdevelopment.
Many families have been forced to pull their children out of school to work in shops, factories, or farms, contributing to an increase in child labour. In urban slums, young boys often take up dangerous informal jobs, while girls are pulled into domestic work or early marriages. The mental and physical toll of these conditions will likely haunt the country for generations to come.
Health indicators also paint a grim picture. With most public hospitals underfunded and overcrowded, access to quality healthcare is out of reach for millions. Preventable diseases such as tuberculosis, hepatitis, and waterborne infections remain widespread. The lack of nutrition has also contributed to a rise in maternal and infant mortality in both urban and rural areas.
Women bear the brunt
As is often the case in humanitarian crises, women and girls are disproportionately affected by rising poverty. With men out of work or forced to migrate for employment, many women have taken on the dual burden of earning an income and caring for families. Yet, female participation in the formal workforce remains low due to cultural, logistical, and structural barriers. In conservative regions, women’s mobility is limited, and their access to banking, training, or credit is nearly nonexistent.
As a result, many resort to informal labour in homes or fields, often without contracts or legal protections. Domestic violence, child marriages, and honour crimes also tend to rise during periods of extreme economic distress, adding to the vulnerability of women.
A crisis with regional implications
Pakistan’s growing poverty problem is not just a national crisis—it has regional and global implications. A country with over 240 million people facing mounting social unrest, internal displacement, and widespread desperation cannot remain insulated from the wider geopolitical landscape. Humanitarian pressures could spill across borders, while extremist groups may find fertile ground in impoverished communities, exploiting economic grievances for recruitment.
Already, migration from rural to urban areas is straining public services, leading to overcrowded cities and rising social tensions.
As the informal economy absorbs a growing number of workers, labour rights, wages, and working conditions are deteriorating. Crime, drug addiction, and mental health issues are also on the rise, contributing to a deeper societal breakdown. The World Bank’s report is more than just a data point—it is a stark wake-up call. This unfolding crisis is a reminder that poverty is not merely the absence of income—it is the denial of opportunity, dignity, and hope.
In the story of modern Pakistan, the plight of the 45% must no longer remain a footnote. It is the central chapter of a nation in distress.
Written by: Md. Sojib Biswas (Journalist)
