Pakistan’s economic recovery a myth? Millions still struggle in poverty; here’s what World Bank says

Pakistan’s claimed economic recovery is turning its back on the people who need it most, according to a new World Bank report. While the government celebrates growth under the IMF programme and stock markets hit record highs, the reality is quite grim for millions of citizens who continue to struggle with poverty and inequality, The Express Tribune reported as cited by PTIThe World Bank’s poverty and resilience report shows that household well-being has worsened despite macroeconomic stability. Poverty, which fell from over 60% in 2001 to 21% in 2018, has risen again to over 27% by 2023-24. Under the lower-middle-income benchmark, almost half of the population now lives below the poverty line.Rural areas, especially Balochistan and interior Sindh, face far higher deprivation than cities like Islamabad and Lahore. Limited access to healthcare, education, and infrastructure continues to deepen inequality. Malnutrition is widespread, with nearly 40% of children under five stunted, and poor education outcomes leave millions of young people unprepared for work.Employment is another challenge. Over 85% of Pakistan’s workforce is in the informal sector, lacking contracts, benefits, or social protections. Women are particularly affected. The report warns that even a 10% drop in household income could push millions back into poverty due to stagnant wages and inflation.Although IMF-backed reforms have stabilised Pakistan’s economy, they have not yet improved living standards in a meaningful way. Foreign investors also remain sceptical of the government’s positive outlook, with many pulling back investments or reducing operations due to weak demand and structural inefficiencies, The Express Tribune reported, as cited by PTI.The World Bank has called on Pakistan to adopt policies that foster inclusion and resilience, including stronger social safety nets, better education and healthcare, and fairer fiscal reforms. True progress, the report suggested, should be judged not by rising market indices or IMF approval, but by real improvements in the lives of ordinary citizens, The Express Tribune reported.