World Bank Reports Pakistan Holds 48% of Regional Poor

The World Bank projects Pakistan's economy will grow by 3.8% during the 2026-27 fiscal year, with an expected inflation rate of 8.2% and a budget deficit of 3.5% of GDP. Despite this growth forecast, a new regional report covering Pakistan, Afghanistan, the Middle East, and North Africa reveals that Pakistanis account for 48% of the population in that region living below the poverty line of $3 per day.

Poverty at the $3-a-day threshold increased by 6.4 percentage points between 2018-19 and 2024-25, while the $4.20-a-day threshold rose by 3.2 percentage points. The World Bank attributes this deterioration to a combination of the COVID-19 pandemic, the 2022 floods, currency depreciation, and prolonged economic adjustments that weakened household incomes. The report notes that the rise in poverty across the entire region is driven largely by developments within Pakistan, where the private sector has failed to adapt to emerging economic requirements.

Geopolitical tensions in the Middle East have further strained the economy, driving petrol and diesel prices in Pakistan up by more than 40%. This increase has reduced fiscal space and heightened inflationary pressures for consumers. To build more resilient economies, the World Bank suggests that long-term growth depends on digital readiness and the adoption of new technologies, including artificial intelligence.