Latest news with #HIES
Express Tribune
3 days ago
- Business
- Express Tribune
WB readjusts poverty line in Pakistan at 44.7%
Listen to article The World Bank has adjusted upward the income levels in an effort to measure global poverty, which has also pushed the percentage of Pakistanis living in poverty by to 44.7% — an outcome that may not still be fully reflecting the harsh ground realities due to the use of seven years old survey data. The Washington-based lender on Thursday released its new international poverty line to reflect changes in the prices of goods and services and their implications on the global population. The new poverty line for Pakistan, which is a lower middle-income country, is set at $4.20 per person per day, up from $3.65, said Christina Wieser, the senior poverty economist of the World Bank while briefing the media persons here. She said that due to the upward revision, for the lower middle income level, the poverty ratio has jumped from 39.8% of the old level to 44.7% on the threshold of $4.20 per day income. The World Bank has also updated the extreme poverty line from $2.15 to $3 per person per day. Because of the revision in the threshold, 16.5% of the Pakistani population lives in extreme poverty, up from 4.9% under the previous $2.15 threshold, said Christina. She said that one of the reasons for such a high jump was that the majority of the people were clustered around $2.15 to $3 per day income level, which resulted into a significant surge. About 82% of this increase in extreme poverty is due to the higher value of the new international poverty line reflecting increases in the national poverty lines of comparator countries, with the rest explained by price increases in Pakistan between 2017 and 2021, according to the World Bank. The World Bank has not used the latest population census data and instead relied on the United Nations population dataset. Christina also added that the underlying Household Income and Expenditure Survey (HIES) 2018/19 data has been used for both national and international estimates. While international poverty lines are essential for tracking global progress and comparisons, national lines remain more appropriate for informing country-specific policy decisions, said the senior economist. Anything that has affected since 2019 is not included in either Covid-19 or 2022 floods, as the baseline remains the same, said Christina while responding to a question. We are desperately looking forward to the new household integrated economic survey to update our baseline, she added. The local economists had estimated a sharp rise in poverty after the 2022 floods, which inundated one-fourth of the country and adversely impacted populations in three provinces. These updates to the international poverty lines ensure that poverty estimates remain accurate and comparable across countries. The methodology remains consistent with past updates, continuing a practice that began with the introduction of the dollar-a-day line in 1990, according to the World Bank economist. "The revisions help position Pakistan's poverty levels in a global context and underscore the importance of continued efforts to reduce vulnerability and improve resilience," said Najy Benhassine, the outgoing World Bank Country Director for Pakistan. For domestic policy and programme targeting, the national poverty line remains unchanged and continues to serve as the primary benchmark for assessing poverty within Pakistan, Christina said. The forthcoming World Bank Poverty, Equity, and Resilience Assessment for Pakistan will provide critical context for interpreting these updated poverty estimates, she added. The report would offer a detailed update on poverty, inequality, and non-monetary outcomes, will investigate key drivers of poverty, and outline a forward-looking agenda to enhance prosperity and resilience for all Pakistanis. According to the government's last official available numbers, which are based on the 2018-19 survey, 21.9% of the population was living below the national poverty line. However, because national poverty lines differ widely, the resulting poverty rates are not comparable internationally. The need for new international poverty lines arises from the evolving price levels and cost of basic needs across the world and within income groups, according to Christina Wieser. To maintain accurate global comparisons, the World Bank periodically updates these poverty lines. International poverty estimates are based on the headcount of people with consumption below the international poverty line, defined in purchasing power parities (PPPs). Pakistan is among the countries experiencing the largest changes in poverty when transitioning to the 2021 PPPs based on the Low-Income International Poverty Line, according to the World Bank. The World Bank said that the international poverty line should be used only for cross-country comparison and analysis; for evaluating poverty in a particular country (Pakistan), the national poverty line remains the appropriate standard. The revisions help position Pakistan's poverty levels in a global context and underscore the importance of continued efforts to reduce vulnerability and improve resilience, The new figures reflect updated international thresholds and improved data from other countries, not deterioration in living standards, according to Christina.
Express Tribune
3 days ago
- Business
- Express Tribune
Pakistan's poverty rate rises to 44.7% under new World Bank thresholds
Listen to article ISLAMABAD: The World Bank has revised the global income thresholds used to measure poverty, resulting in a big increase in Pakistan's poverty headcount, which now stands at 44.7%. However, experts caution that the updated figure may still not fully capture current realities due to reliance on outdated data from the 2018-19 Household Income and Expenditure Survey (HIES). The Washington-based lender on Thursday released its new international poverty line to reflect changes in prices of goods and services and their implications on the global population. The new poverty line for Pakistan, which is a lower middle-income country, is set at $4.20 per person per day, up from $3.65, said Christina Wieser, the senior poverty economist of the World Bank, while briefing media persons on Thursday. She said that due to the upward revision, for the lower-middle income level, the poverty ratio has jumped from 39.8% of the old level to 44.7% on the threshold of $4.20 per day income. Read more: Poverty is imaginatively appraised, yet the poor remain poor The World Bank has also updated the extreme poverty line from $2.15 to $3 per person per day. Because of the revision in the threshold, 16.5% of the Pakistani population lives in extreme poverty, up from 4.9% under the previous $2.15 threshold, said Christina. She said that one of the reasons for such a high jump was that the majority of the people were clustered around the $2.15 to $3 per day income level, which resulted in a significant surge. About 82% of this increase in extreme poverty is due to the higher value of the new international poverty line reflecting increases in the national poverty lines of comparator countries, with the rest explained by price increases in Pakistan between 2017 and 2021, according to the World Bank. The World Bank has not used the latest population census data and instead relied on the United Nations population dataset. Christina also added that the underlying Household Income and Expenditure Survey (HIES) 2018/19 data has been used for both national and international estimates. While international poverty lines are essential for tracking global progress and comparisons, national lines remain more appropriate for informing country-specific policy decisions, said the senior economist. Also read: Rethinking Poverty: The Rise of New Poor in Pakistan Anything that has affected since 2019 is not included, neither COVID-19 nor the 2022 floods, as the baseline remains the same, said Christina while responding to a question. We are desperately looking forward to the new household integrated economic survey to update our baseline, she added. The local economists had estimated a sharp rise in poverty after the 2022 floods, which inundated one-fourth of the country and adversely impacted populations in three provinces. These updates to the international poverty lines ensure that poverty estimates remain accurate and comparable across countries. The methodology remains consistent with past updates, continuing a practice that began with the introduction of the dollar-a-day line in 1990, according to the World Bank economist. "The revisions help position Pakistan's poverty levels in a global context and underscore the importance of continued efforts to reduce vulnerability and improve resilience," said Najy Benhassine, the outgoing World Bank Country Director for Pakistan. For domestic policy and programme targeting, the national poverty line remains unchanged and continues to serve as the primary benchmark for assessing poverty within Pakistan, Christina said. The forthcoming World Bank Poverty, Equity, and Resilience Assessment for Pakistan will provide critical context for interpreting these updated poverty estimates, she added. The report would offer a detailed update on poverty, inequality, and non-monetary outcomes, will investigate key drivers of poverty, and outline a forward-looking agenda to enhance prosperity and resilience for all Pakistanis. Read more: World Bank-funded project cost doubles after revision According to the government's last officially available numbers, which are based on the 2018-19 survey, 21.9% of the population was living below the national poverty line. However, because national poverty lines differ widely, the resulting poverty rates are not comparable internationally. The need for new international poverty lines arises from the evolving price levels and cost of basic needs across the world and within income groups, according to Christina Wieser. To maintain accurate global comparisons, the World Bank periodically updates these poverty lines. International poverty estimates are based on the headcount of people with consumption below the international poverty line, defined in purchasing power parities (PPPs). Pakistan is among the countries experiencing the largest changes in poverty when transitioning to the 2021 PPPs based on the Low-Income International Poverty Line, according to the World Bank. The World Bank said that the international poverty line should be used only for cross-country comparison and analysis; for evaluating poverty in a particular country (Pakistan), the national poverty line remains the appropriate standard. The revisions help position Pakistan's poverty levels in a global context and underscore the importance of continued efforts to reduce vulnerability and improve resilience. The new figures reflect updated international thresholds and improved data from other countries, not deterioration in living standards, according to Christina.
Yahoo
07-04-2025
- Business
- Yahoo
Positive statistics alone will not enable govt to make sound decisions, says Chief Statistician
Accurate data is essential for sound decision-making. Malaysia's Chief Statistician, Datuk Seri Dr Mohd Uzir Mahidin, says the Department of Statistics Malaysia (DOSM) is working to make data more engaging and relevant by breaking it down into meaningful insights for the public. Twentytwo13 recently sat down with Malaysia's Chief Statistician, Datuk Seri Dr Mohd Uzir Mahidin, to discuss DOSM's role in assisting policymakers and making the data more accessible to the public. Twentytwo13: What are your responsibilities as the Chief Statistician of Malaysia? Uzir: My role is to lead DOSM and ensure that the data required by the country – whether for the government, the people, or businesses – is effectively provided. This data supports planning and decision-making. As Chief Statistician, I must equip myself with the necessary skills in economic and social statistics. Twentytwo13: How does DOSM assist the policymakers in Malaysia? Uzir: Statistics are used to help the country achieve greater prosperity and ensure that everyone is well looked after. For example, it is my responsibility to provide accurate data on vulnerable or underserved populations. I do this by assigning data by geography and location – pinpointing which city, town, or village needs the most help. This will directly impact the allocation of public funds. It is crucial to know which areas require assistance in terms of security, the economy, and public welfare. The aim is to produce more granular and comprehensive statistics for better insight. The government's goal is to help citizens spend their money wisely. And with better statistics, we can improve the country's economic planning and development. Twentytwo13: There is a saying that data never lies, but it can also be manipulated. Your thoughts on this? Uzir: It doesn't matter whether the statistics are good or bad, as long as they are presented accurately. Providing only positive statistics isn't right because the government of the day wouldn't be able to make sound decisions based on inaccurate or incomplete information. Any good government must have access to both positive and negative statistics to make informed decisions, whether that involves improving employment rates or addressing other challenges. Making the right decisions to help the people will result in greater confidence in the government. This is similar to taking a person's temperature – if it is accurate, a doctor can treat the illness. But if the information is false, the doctor won't know what action to take. The only positive outcome of recent government changes is that politicians now recognise the importance of statistics. Those in the opposition, who were once in government, understand this too. Twentytwo13: Last year, there was criticism when a household income of RM13,000 was considered a T15 group. Can you explain how this figure was calculated? Uzir: The figure is based on the 2022 Household Income & Expenditure Surveys (HIES). The survey is carried out at least twice in a rolling five-year period to produce representative data regarding income, poverty and access to basic amenities for Malaysian households. However, since then, Malaysia's economy grew by 5.1 per cent (2023: 3.6 per cent) in 2024, with a value of RM1.93 trillion at current prices and RM1.65 trillion at constant prices. Additionally, Gross National Income per capita increased by 3.6 per cent to RM54,894 from a marginal decrease of 0.2 per cent (RM52,991) in 2023. Historically, DOSM has released GDP and per capita data (e.g., a GDP of RM1.5 trillion divided by population). This is a valuable yardstick to understand household income distribution, such as Malaysia's 34 million people across 9 million households, each with an average of 3.2 people per household. We also measure disposable income, which can vary greatly by region. For example, renting a house in one area may differ from another. We have since revised the calculations by introducing the MyPAKW (Basic Expenses for Decent Living Calculator), which is expected to be more accurate. Twentytwo13: Many people don't fully understand statistics. How is DOSM changing this perspective? Uzir: Statistics can be a dry or boring subject for many. This underutilisation of statistics means we need to educate more people on how to use and interpret data. Statistics are no longer dry or boring – they are essential tools for understanding and improving the world around us. We must become better storytellers and communicate the data effectively. We do this by giving the people a more meaningful connection to the statistics they are trying to understand. For instance, when we provide statistics on the cost of living, we do so by breaking them down not just by state, but by district. That way, the people have a better understanding and would be more willing to read more. If we were to generate a general report using state-by-state data, some people might argue that the figures are not accurate. But by breaking it down and showing them the differences within their states, they can better understand the cost of living in one area compared to another. The younger generation may struggle with this, but understanding statistics is essential for navigating today's complex world. The more literate we become in statistics, the better we can make informed decisions. Twentytwo13: Are there any other tools DOSM provides the government to help the people? Uzir: We have produced 222 books for each Parliamentary constituency in Malaysia and more than 600 books for the state assemblymen. In each book, we provide the necessary information that the people's representatives can use to assist the public. For example, in some areas, the death rate or school closures may be more prevalent. In regions with high crime rates, unemployment might be the contributing factor. Statistics help us understand these issues better and allow us to compare data such as wage differences across regions. The data provides feedback on market profiles, helping businesses understand things like the number of laundromats or youth populations in an area. By educating the people at the top, we hope they would then use the data to help the people they were elected to serve. Twentytwo13: How has the statistical system adapted to changes in technology over the years? Uzir: The idea of a 'one size fits all' approach is outdated. Now we must produce data for the targeted audience. As mentioned, it is not just providing data for one particular state but breaking that information down to each district so it reaches the relevant people as well. Statistics are like navigating Waze – if there's a traffic jam, you find another route. Similarly, you can use statistics to find solutions. Twentytwo13: Can you tell us about your recent trip to New York for the 56th session of the United Nations Statistical Commission? Uzir: The UN Statistics Commission is involved in gathering data to assess and discuss global issues like economic development, social progress, and environmental challenges. Data from these discussions guide decisions on everything from poverty and hunger to deforestation and carbon emissions. Statistical differences are viewed from various perspectives in regions like Asean, Europe, Africa, and beyond. Rating agencies assess countries' financial health based on this data, which in turn influences interest rates and investment decisions. I was there to share data on behalf of Asean.
