Poverty rate in Pakistan has been measured in the World Bank’s latest ranking. The world bank has recently upgraded its international poverty lines under globally changing prices and improved data. It provides a regular review of global poverty lines.
Poverty is one of the serious issues of Pakistan. According to the ranking report, Pakistan is categorized as a middle-class-income country. The poverty line in Pakistan is set at $4.20 per person per day, which means the majority in Pakistan fall below poverty lines. The threshold of extreme poverty per person per day is set at $3.00, which affects 16.5% of the population of Pakistan and is 4.9% higher than the last used threshold of $2.15. Moreover, the poverty line of the upper-middle class is set at $8.30 per person per day. According to this benchmark, 88.4% of the people of Pakistan fall into this category.
These recent changes are based on data from 2021 Purchasing Power Parity collected with the help of the International Comparison program. The World Bank used this data to ensure poverty line measurements across countries remain fair and based on recently collected figures. However, the overall approach to collecting data has not changed at all. It’s a part of an act that started originally with “Dollar –a-day” program, introduced back in 1990.
The world bank country director for Pakistan, Najy Benchassine, stated that these updated numbers aren’t a sign that living standards in Pakistan are worse. Instead, they present a more accurate picture thanks to updated cost of living estimates.
Moreover, Pakistan’s poverty line has remained unchanged, which plays a central role in finalizing household policing and targeting social programs. The assessing data from these measures comes from 2018-19’s Household Income and Expenditures Survey, which still serves as a basis for national and international poverty estimates.
Furthermore, these World Bank’s International poverty lines, upgraded in June 2025, aim to improve relevance across countries in global poverty measurements. This updated report on equity, resilience and poverty in Pakistan provides attention to the country’s poverty levels, inequity and non-monetary challenges. The key factors will help Pakistan to create a pathway to build a more inclusive and resilient future.
