Pakistan Home to 48% of MENAP Region’s Poor Population, World Bank Says
Pakistan Accounts for 48% of Poor People Across MENAP Region
ISLAMABAD: (News Desk) – Pakistan accounts for 48 percent of the poor population in the Middle East, North Africa, Afghanistan and Pakistan (MENAP) region, according to a recent World Bank report.
The report defines the relevant poverty threshold at $3 per person per day, equivalent to approximately Rs840 based on the exchange rate cited in the report.
According to the World Bank, prolonged economic reforms have contributed to a decline in real household incomes in Pakistan, leading to higher poverty and fewer employment opportunities.
The report said Pakistan’s poverty rate based on the $3-a-day threshold increased by 6.4 percentage points between 2018-19 and 2024-25. At the $4.20-a-day threshold, poverty increased by 3.2 percentage points during the same period.
The World Bank estimates Pakistan’s GDP growth at 2.2 percent for the current fiscal year, broadly in line with the previous year.
The report attributed Pakistan’s worsening economic conditions to a series of shocks, including the COVID-19 pandemic, the devastating 2022 floods, an economic crisis, high inflation and depreciation of the Pakistani rupee.
The World Bank said the increase in poverty across the MENAP region was primarily driven by rising poverty in Pakistan.
The report also highlighted the impact of the ongoing conflict in the Middle East on oil-importing economies. Since the conflict began, petrol prices have increased by around 40 percent in Pakistan and Lebanon, while prices have also risen in Syria and the United Arab Emirates.
Diesel prices in Pakistan have increased by more than 40 percent, while Lebanon recorded an increase of up to 80 percent and the UAE around 70 percent, according to the report.
The World Bank noted that oil-importing countries, including Pakistan, Morocco, Tunisia, Djibouti, Egypt and Jordan, are facing mounting economic pressures as higher oil and essential commodity prices fuel inflation and reduce fiscal space.
The report further said remittances from Gulf economies have declined, while borrowing and insurance costs have increased amid heightened economic and geopolitical risks.
The World Bank also observed that Pakistan’s private sector has yet to fully adapt to the country’s changing economic requirements.
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