New Delhi, October 9 (Daily Kiran) : The poverty rate in Pakistan has increased by 6.4% from 2018-19 to 2024-25, based on a threshold of three dollars a day. This alarming rise is attributed to the impacts of the COVID-19 pandemic, the devastating floods of 2022, and ongoing economic challenges, according to a recent report.
As reported by ‘Dawn’, Pakistan accounts for nearly half of the extremely poor population in the Middle East, North Africa, and the Afghanistan-Pakistan region (MENAP). The report indicates that MENAP is the only area in the world where poverty levels remain above pre-pandemic figures and are continuing to rise.
Approximately 48% of those living on less than three dollars a day reside in Pakistan, while Afghanistan, Syria, and Yemen collectively account for about 47%. Recent estimates suggest that the proportion of the population living below the three-dollar daily poverty line in Djibouti, Pakistan, Syria, and Yemen has reached or exceeded 20%.
The report also compares regional and global poverty statistics. In 2024, 14.3% of MENAP’s population lived on less than three dollars daily, compared to a global average of 10.4%. Furthermore, the percentage of people surviving on less than 4.20 dollars a day was 26.9% in MENAP versus 18.9% worldwide.
Despite these challenges, the report forecasts a gradual improvement in Pakistan’s economic growth rate. It estimates a GDP growth rate of 3.2% for the fiscal year 2024-25, which could rise to 3.7% in 2025-26 and reach 3.8% in 2026-27. The service sector is expected to contribute significantly to this growth.
For the fiscal year 2025-26, Pakistan’s current account deficit is projected to be 0.1% of GDP, with a fiscal deficit estimated at 2.6%. Concerns about food insecurity were also highlighted, particularly in the occupied West Bank, Gaza, Yemen, and among vulnerable populations in Afghanistan, Djibouti, Lebanon, and Pakistan.
The report warns that a stronger-than-normal El Niño weather pattern anticipated by the end of 2026 could further pressure food prices, exacerbating difficulties for the poor and marginalized. The compounding effects of the pandemic, natural disasters, and economic crises have intensified the poverty issue in the region, with the rising poverty rate in Pakistan serving as a stark example of this broader crisis.
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