Pakistan’s poverty rate up by 7pc, says World Bank
- By Shoaib Nizami -
- Sep 23, 2025
ISLAMABAD: Poverty in Pakistan has increased by 7 percent over the last four years, according to a new report released by the World Bank, ARY News reported.
World Bank Country Director for Pakistan, Najy Benhassine’s successor, Bolormaa Amgaabazar, shared the findings during a press briefing, highlighting that the poverty rate has reached 25.3 percent in 2023-24.
The report noted that poverty in Pakistan was recorded at 18.3 percent in 2021-22, which surged to 24.8 percent in 2022-23, before climbing further to 25.3 percent in 2023-24.
According to the World Bank, Pakistan had been witnessing a steady decline in poverty until 2018. Between 2011 and 2015, poverty fell at an average annual rate of 3 percent, while between 2015 and 2018, it declined by 1 percent annually. However, since 2020, the trend has reversed, and poverty levels have begun to rise again.
The report further stated that while agricultural income has helped reduce poverty to some extent, income growth from other sources has remained weak. From 2011 to 2021, people’s incomes increased by only 2 to 3 percent, the World Bank added.
Earlier, the World Bank had officially announced that Pakistan would be provided a $20 billion concessional loan, to be disbursed over ten years at an interest rate of 2 percent.
The World Bank loan is part of the recently finalized Country Partnership Framework (CPF) 2025–2035, planned to overcome Pakistan’s development challenges.
Also Read: World Bank approves $20 billion concessional loan for Pakistan
An additional $20 billion is likely to be organized for the private sector with the help of the International Finance Corporation (IFC). Hence, the total estimated financing volume will go to $40 billion.
The CPF will work on the six main sectors, including climate resilience and poverty mitigation, health and education improvements, child stunting reduction, inclusive development, clean energy evolution, and quality improvement of air.
A national operational plan is in its final stages, with emphasis on increasing private investment and comprehensive growth to mitigate Pakistan’s development challenges.
With support of the World Bank loan, the infrastructure will also focus on foundational education, sanitation, and disaster resilience.