Why is Pakistan so poor? World Bank report makes shocking revelation, it says biggest reason is...
New Delhi: According to a World Bank study, the largest contributor to the increase in poverty in Pakistan is the General Sales Tax (GST), while the monthly cash transfer programme for the poorest families has the most positive impact on reducing inequality.
The World Bank, in a report titled 'The Impact of Taxes and Transfers on Inequality and Poverty in Pakistan', stated that GST payments account for more than seven percent of the pre-tax expenditure of households, which leads to further poverty among poor and vulnerable families.
The GST has the largest contribution to the increase in national poverty.
'Dawn' reported on Sunday, 25 May 2025 citing the World Bank study, that the estimated contribution of personal financial tools, or when all other financial instruments are included, shows that personal financial tools have an additional effect on poverty or inequality, indicating that GST's contribution to the increase in national poverty is the largest.
The second largest impact on inequality comes from spending on preschool and primary education.
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