Pakistan's economic stability masks a nation sinking deeper into poverty

Karachi [Pakistan] October 7 (ANI): Pakistan's apparent economic recovery, often highlighted by government officials and market analysts, conceals a far grimmer reality for millions of its citizens. While the state asserts growth under the IMF program and the stock market touches record highs, the World Bank's latest assessment reveals that poverty and inequality continue to deepen across much of the country, as reported by The Express Tribune.
According to The Express Tribune, the World Bank's poverty and resilience report shows that despite macroeconomic stability, household well-being has sharply worsened. Between 2001 and 2018, poverty rates fell from over 60 per cent to around 21 per cent. However, the pandemic, recurring political instability, and economic shocks have undone much of that progress, pushing the poverty rate back to over 27 per cent by 2023-24. Under the broader benchmark for lower-middle-income countries, nearly half of Pakistan's population now lives below the poverty line. The report highlights that rural Pakistan, especially in Balochistan and interior Sindh, faces far higher deprivation than urban centres like Islamabad and Lahore. Limited access to education, healthcare, and infrastructure continues to reinforce this regional inequality. Malnutrition remains rampant, with nearly 40 per cent of children under five stunted. Education outcomes remain poor, leaving millions of future workers unprepared for productive employment.
Employment patterns further expose this divide. Over 85 per cent of Pakistan's workforce operates in the informal sector, lacking contracts, benefits, or social protection. Women, in particular, are disproportionately affected by this economic fragility. The report warns that even a 10 per cent decline in household income could drive millions back into poverty, given stagnant wages and volatile inflation. While the IMF-supported reforms have helped restore macroeconomic stability, these gains have yet to translate into meaningful improvement in living standards. Foreign investors, too, appear unconvinced by the government's optimistic outlook; many have withdrawn capital or scaled down operations, citing weak demand and structural inefficiencies, as cited by The Express Tribune.
The World Bank urged Pakistan to pursue policies that promote inclusion and resilience, expanding social safety nets, improving education and healthcare, and ensuring fiscal reforms that distribute the burden fairly. Pakistan's true progress must ultimately be measured not by rising market indices or IMF praise, but by tangible improvements in the lives of its citizens, as reported by The Express Tribune. (ANI)