ISLAMABAD (PEN) : The World Bank has reported a significant increase in Pakistan’s poverty rate, rising from 39.8% to 44.7%, following the adoption of a revised poverty measurement framework.
Revised Poverty Line Raises Threshold
According to the World Bank’s latest assessment, the adjustment stems from an updated benchmark for lower-middle-income countries. Under the new methodology, individuals earning less than *\$4.20 per day* are now considered below the poverty line, compared to the previous threshold of *\$3.65 per day*.
This redefinition has resulted in approximately *107.9 million people*—nearly 45% of the country’s population—being classified as poor. The report emphasizes that this change reflects a new measurement standard rather than an immediate deterioration in living conditions.
Extreme and Upper-Middle Income Poverty Levels
The report also establishes new criteria for extreme poverty, defining it as living on *less than \$3 per day. By this metric, **16.5%* of Pakistan’s population is categorized as extremely poor.
Furthermore, when measured against the poverty line for upper-middle-income nations—now increased from *\$6.85 to \$8.30 per day—88.4%* of Pakistanis fall below the poverty threshold.
Global Alignment of Poverty Metrics
The updated poverty thresholds are part of the World Bank’s broader initiative to standardize income-based poverty measurements across economies with different income classifications. This shift aims to offer a more accurate reflection of economic vulnerability in developing nations.
While the recalibration does not suggest an immediate worsening of conditions, it underlines the need for more targeted policies to address income disparities and expand social safety nets.
