The World Bank has revised the global poverty benchmarks, and according to the new standards, 44.7% of Pakistan’s population now falls below the poverty line, while nearly 40 million people are living in extreme poverty.
The international financial institution updated the poverty measurement criteria globally, adjusting the income threshold for lower-middle-income countries like Pakistan. The new daily income benchmark has been set at $4.20 per person, up from the previous threshold of $3.65. Based on this standard, 108.95 million people in Pakistan -- those earning less than approximately Rs1,200 per day -- are now officially classified as poor.
While the poverty rate under the older definition was 39.8%, the revised measure reflects a deeper look into purchasing power and rising costs of living in developing economies. However, the World Bank clarified that the change in methodology does not reflect a shift in actual living standards, only a more updated and realistic assessment of economic vulnerability.
Additionally, to classify extreme poverty, the World Bank has set a new income benchmark of $3 per day. Under this threshold, 16.5% of Pakistan’s population—which equates to around 39.8 million people—is living in extreme hardship.
The report, however, noted a critical limitation in Pakistan’s poverty data: the government has yet to release results from the new population census, so the World Bank had to rely on household survey data from 2018-19. This use of outdated demographic figures could mean the actual poverty numbers are even higher today.
Pakistan continues to be categorized as a lower-middle-income country, and the updated poverty lines reflect new thresholds for all country income groups. For instance:
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For low-income countries, the poverty line has increased from $2.15 to $3.00/day.
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For upper-middle-income countries, the poverty threshold is now $8.30/day, up from $6.85.
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Based on this broader metric, 88.4% of Pakistanis fall below the $8.30/day mark, indicating widespread economic vulnerability even among those not considered officially poor.
