ISLAMABAD: The federal government has challenged a recent World Bank report highlighting Pakistan’s growing poverty levels, describing its regional comparisons as misleading.
Khurram Schehzad, adviser to Finance Minister Muhammad Aurangzeb, said Pakistan’s inclusion in the Middle East, North Africa, Afghanistan and Pakistan (MENAAP) region had significantly influenced the regional poverty figures.
According to the report, Pakistan accounts for 48% of the region’s population living below the international poverty threshold of $3 per day. It also estimates that the country’s poverty rate increased by 6.4 percentage points between fiscal years 2018-19 and 2024-25.
Schehzad argued that the regional classification was an administrative and statistical decision that altered the composition of regional figures without changing Pakistan’s geographical identity or income classification.
He maintained that comparing countries through consistent poverty thresholds and reference periods would provide a clearer understanding of economic conditions.
However, the World Bank’s findings also identify a rise in poverty within Pakistan itself. The increase cannot be explained solely by the country’s inclusion in a different regional grouping.
The report links worsening poverty to prolonged economic adjustments that weakened household purchasing power and employment opportunities. Earlier economic shocks, including the Covid-19 pandemic, devastating floods and high inflation, also placed pressure on household incomes.
The debate has renewed attention to Pakistan’s economic challenges, particularly the need to strengthen employment, protect vulnerable households and ensure that economic recovery translates into improved living standards.
The government’s response highlights disagreements over regional comparisons, while the country-level figures underline continuing concerns about poverty and household welfare.
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