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Time of India
25-04-2025
- Business
- Time of India
India lifted 170 million out of poverty in a decade: World Bank
New Delhi: India made strides in poverty reduction, lifting 170 million (17 crore) people out of poverty between 2011-12 and 2022-23, a new World Bank report said. The proportion of people living in extreme poverty, those living on less than $2.15 a day, declined to 2.3% in 2022-23 from 16.2% in 2011-12. #Pahalgam Terrorist Attack India pulled the plug on IWT when Pakistanis are fighting over water What makes this India-Pakistan standoff more dangerous than past ones The problem of Pakistan couldn't have come at a worse time for D-St On Friday, finance minister Nirmala Sitharaman highlighted the feat on social media and noted that employment growth has outpaced working-age population. Rural areas recorded a higher decline in poverty than urban areas. The extreme poverty rate in rural areas fell to 2.8% in 2022-23 from 18.4% in 2011-12, while urban areas saw a reduction to 1.1% from 10.7% during the same period, according to the 'Poverty and Equity Brief' by the World Bank. Five states-Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh-accounted for 65% of India's extreme poor in 2011-12. These states were also responsible for two-third of the poverty reduction by 2022-23 and now represent 54% of those living in extreme poverty. 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sulawesi Selatan: AI guru Andrew Ng recommends: Read These 5 Books And Turn Your Life Aroun... Blinkist: Andrew Ng's Reading List Undo The poverty estimates are based on the Consumption Expenditure Survey 2011-12 and the Household Consumption Expenditure Survey 2022-23. While the latest survey includes improvements in questionnaire design, survey implementation, and sampling, the World Bank cautioned that these changes pose challenges for making comparisons over time. It also noted underestimation of consumption inequality due to sampling and data limitations. India's Gini Index, which measures consumption-based inequality, fell to 25.5 in 2022-23 from 28.8 in 2011-12, marking an improvement. However, the Bank warned that this may not fully reflect reality due to data limitations. Live Events In contrast, the World Inequality Database reported a rise in income inequality, with the Index increasing to 62 in 2023 from 52 in 2004. "Wage disparity remains high, with the median earnings of the top 10 %being 13 times higher than the bottom 10% in 2023-24," the Bank mentioned. On a positive note, employment has grown faster than the working-age population since 2021-22, according to the World Bank. The data shows a shift in the workforce: more male workers are moving from rural to urban areas, while female employment in rural agriculture is rising, it added.
Business Recorder
23-04-2025
- Business
- Business Recorder
Pakistan's poverty rate to stand at 42.4%: World Bank
ISLAMABAD: The poverty rate in Pakistan is estimated to stand at 42.4 percent in fiscal year 2025, with population growing at nearly 2 percent annually, this translates to 1.9 million additional people falling into poverty this year, says the World Bank. The bank in its 'Poverty & Equity Brief', noted that despite a stabilising economy and easing inflation, Pakistan's 2.6 percent economic growth remains insufficient to reduce poverty. The poverty rate is estimated to stand at 42.4 percent (US$3.65/day 2017 PPP) in fiscal year 2025, virtually unchanged from last year. With population growing at nearly 2 percent annually, this translates to 1.9 million additional people falling into poverty this year. Economy's growth model needs urgent overhaul: World Bank Consumption-based inequality, as measured by the Gini Index, has climbed nearly 2 points since fiscal year 2021, holding steady just below 32 over the past year. However, actual inequality is likely higher since surveys typically under-represent wealthy households. Additionally, external factors such as evolving global trade dynamics could influence the pace of economic recovery and subsequent progress on poverty reduction. Following agricultural growth in fiscal year 2024, the sector now faces significant challenges. In first half (H1) of fiscal year 2025, weather conditions deteriorated with a 40 percent reduction in rainfall, along with pest attacks and shifting production choices. Crop yields are projected to decline, ranging from 29.6 percent for cotton to 1.2 percent for rice, limiting sectoral growth to fewer than 2 percent. With agriculture employing approximately half of the working poor, rural poverty is expected to rise slightly (0.2 percentage points), while real incomes for agricultural workers are projected to fall 0.7 percent in fiscal year 2025. Food security concerns loom large, with an estimated 10 million people at risk of acute food insecurity in rural areas. Fiscal tightening has restricted development spending, undermining the construction industry that employs 17 percent of the poor in daily wage jobs. Both industrial and service sectors showed weak growth in H1 fiscal year 2025, resulting in minimal real income increases for poor and vulnerable workers in construction (-1.4 percent) and low-productivity service jobs (0.7 percent). While nominal daily wages for low-skilled workers nearly doubled between fiscal year 2019 and Q1 of fiscal year 2025, real wages remained flat or declined slightly, indicating eroding purchasing power, despite inflation easing to 7 percent year-over-year in H1 fiscal year 2025. External remittances surged by 33 percent in H1 fiscal year 2025, but the impact on the poorest remains limited as only 3.2 percent of lowest-income households receive remittances. However, for the vulnerable households just above the poverty line, remittances play an important role in preventing households from falling into poverty in the face of shocks. Rising emigration since 2020, particularly among low-skilled workers, may help extend remittance benefits to poorer households, as well. On the social protection side, recent increases in the Benazir Income Support Program benefits above inflation rates, along with a planned expansion to 500,000 additional households by fiscal year-end, should support household consumption and help buffer the poor against short-term market shocks. Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
Poverty rate in country to stand at 42.4pc: World Bank
ISLAMABAD: The poverty rate in Pakistan is estimated to stand at 42.4 percent in fiscal year 2025, with population growing at nearly 2 percent annually, this translates to 1.9 million additional people falling into poverty this year, says the World Bank. The bank in its 'Poverty & Equity Brief', noted that despite a stabilising economy and easing inflation, Pakistan's 2.6 percent economic growth remains insufficient to reduce poverty. The poverty rate is estimated to stand at 42.4 percent (US$3.65/day 2017 PPP) in fiscal year 2025, virtually unchanged from last year. With population growing at nearly 2 percent annually, this translates to 1.9 million additional people falling into poverty this year. Economy's growth model needs urgent overhaul: World Bank Consumption-based inequality, as measured by the Gini Index, has climbed nearly 2 points since fiscal year 2021, holding steady just below 32 over the past year. However, actual inequality is likely higher since surveys typically under-represent wealthy households. Additionally, external factors such as evolving global trade dynamics could influence the pace of economic recovery and subsequent progress on poverty reduction. Following agricultural growth in fiscal year 2024, the sector now faces significant challenges. In first half (H1) of fiscal year 2025, weather conditions deteriorated with a 40 percent reduction in rainfall, along with pest attacks and shifting production choices. Crop yields are projected to decline, ranging from 29.6 percent for cotton to 1.2 percent for rice, limiting sectoral growth to fewer than 2 percent. With agriculture employing approximately half of the working poor, rural poverty is expected to rise slightly (0.2 percentage points), while real incomes for agricultural workers are projected to fall 0.7 percent in fiscal year 2025. Food security concerns loom large, with an estimated 10 million people at risk of acute food insecurity in rural areas. Fiscal tightening has restricted development spending, undermining the construction industry that employs 17 percent of the poor in daily wage jobs. Both industrial and service sectors showed weak growth in H1 fiscal year 2025, resulting in minimal real income increases for poor and vulnerable workers in construction (-1.4 percent) and low-productivity service jobs (0.7 percent). While nominal daily wages for low-skilled workers nearly doubled between fiscal year 2019 and Q1 of fiscal year 2025, real wages remained flat or declined slightly, indicating eroding purchasing power, despite inflation easing to 7 percent year-over-year in H1 fiscal year 2025. External remittances surged by 33 percent in H1 fiscal year 2025, but the impact on the poorest remains limited as only 3.2 percent of lowest-income households receive remittances. However, for the vulnerable households just above the poverty line, remittances play an important role in preventing households from falling into poverty in the face of shocks. Rising emigration since 2020, particularly among low-skilled workers, may help extend remittance benefits to poorer households, as well. On the social protection side, recent increases in the Benazir Income Support Program benefits above inflation rates, along with a planned expansion to 500,000 additional households by fiscal year-end, should support household consumption and help buffer the poor against short-term market shocks. Copyright Business Recorder, 2025
