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NDTV
2 hours ago
- Business
- NDTV
World Bank Data On India And Pakistan Shows Massive Contrast Over Poverty
New Delhi: Latest data released by the World Bank shows the tale of two countries - India and Pakistan - and their journey to battle poverty - a colonial inheritance. The comparison, especially over the last 15 years, shows a stark difference in priorities between the two south Asian neighbours. While the data for India, released on Saturday, gives a comparative analysis of poverty between 2011-12 and 2022-23, for Pakistan, it highlights the same between 2017-18 and 2020-21. This also comes at a time when India's economy has been in the news last week for surpassing that of Japan's to become the fourth-largest in the world, and Pakistan's was in the news last month for yet another bailout package from the IMF as it struggles to stay afloat. While India's growth story has been a result of its governance model - of development and poverty alleviation, Pakistan's plight has been a result of its misappropriation of funds and its policy on terror. WHAT THE DATA REVEALS Keeping inflation as one of its primary indicators, the World Bank has revised its global income threshold from $2.15 per person, per day to $3 per person, per day to ascertain what percentage of the population lives above the 'extreme poverty' line. According to World Bank's Poverty and Shared Prosperity report, despite the upward revision of per-person income, between 2012 and 2022, extreme poverty in India declined from 27.1 per cent to 5.3 per cent of the total population. The report states that in India, 75.24 million people were living in extreme poverty in India during 2022-23, a massive drop from 344.47 million in 2011-12. This means 269 million individuals - more than the entire population of Pakistan - were lifted out of extreme poverty in India in just 11 years. Sadly, for Pakistan the story is quite the opposite. Extreme poverty figures have risen from 4.9 per cent to 16.5 per cent in less than 5 years between 2017 and 2021. Analysts suggest that the situation could be far worse because of Pakistan's outdated Household Income and Expenditure Survey. To add to this, the overall poverty headcount in Pakistan - at $4.2 per person, per day - has risen from 39.8 per cent of the total population in 2017 to more than 44.7 per cent in 2021. Meanwhile, Pakistan's economy has been completely dependent on loans from global institutions and friendly countries. It has taken 25 bailout packages from the IMF with a cumulative amount of $44.57 billion, and another $38.8 billion in loans from the World Bank, Asian Development Bank, Islamic Development Bank. Besides this, loans from China stand at more than $25 billion and $7.8 billion from lenders like Eurobonds and Sukuks. Saudi Arabia, UAE, and the Paris Club have also extended several billion in loans to cash-strapped Islamabad. 'FUNDING AND SUPPORTING TERROR' However, Pakistan has been far from transparent in its allocation of funds. It has been pulled up several times by international financial institutions over Islamabad's lack of accountability. Islamabad and Rawalpindi's obsession with India and its age-old habit to compare with New Delhi has seen Pakistan spending most of its funds allocated to the country's infamous army, which in turn, has a policy of "bleeding India with a thousand cuts" with its asymmetric warfare against India by funding, setting up terror infrastructure, and supporting terrorists and terror outfits who carry out "cross-border terror". Speaking to NDTV, former High Commissioner of India to Pakistan, Ajay Bisaria, said, "The world cannot fix the Pakistan problem unless the structural problem of Pakistan army's overwhelming presence in politics and economy is fixed. Pakistan's army controls the allocation of resources. So, all the funds that are sent either via bilateral donors or multilateral donors ends up being misused by the army and in building the terror machinery. All donors will do well to get a wake-up call from the data which shows that only the Pakistani army is getting enriched by its bailouts." "The world will do well to put strong FATF-like conditions to monitor the aid money that goes to Pakistan to ensure funds are used for development and the benefit of the people of Pakistan," he added. Another diplomat, former Ambassador Ashok Sajjanhar, told NDTV that "The Pakistani government's priorities focus mainly on defence purchases on one end, and building a terror apparatus on the other end. Growth and development are phrases that are unheard of in Pakistani politics, as all governments have an unhealthy obsession with bringing India down, economically, politically and socially, rather than focusing on its own pressing domestic issues." "But dismantling terror factories are not on Pakistan's agenda since most continue to indulge in falsehoods. When Congressman Brad Sherman told Pakistan to end terror, he also spoke on behalf of millions of Pakistanis who see their development funds being funneled away towards terror and towards fulfilling the inflated egos of Pakistani generals," he added. An economist, Piyush Doshi, co-founder of the Foundation for Economic Development said, "Pakistan spending money in defence, particularly when it comes at the cost of very important development expenditure, is illogical. The world will be doing the people of Pakistan a favour by blacklisting the country, which will then force them to make rational choices and using funds to benefit its citizens." The latest World Bank data tells a story - a tale of two neighbours - one surging ahead and the other collapsing. Both are setting an example for the Global South - of how to be and how not to be. The message is clear: Poverty is not destiny, it is policy, leadership and will.
Express Tribune
4 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
4 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.
Scoop
05-05-2025
- General
- Scoop
Poverty Persists Across PNG And Pacific Despite Economic Growth
Article – RNZ About half of Papua New Guinea's population lives on less than US$3.65 a day, while Fiji and Solomon Islands are also struggling to raise its living standards. Caleb Fotheringham, RNZ Pacific Journalist About half of Papua New Guinea's population lives on less than US$3.65 a day, and there has been little change in monetary well being since a 2010 survey, according to the World Bank. The report said the country has some of the poorest nutrition outcomes in the world, with almost half of children under the age of five being stunted. In 2022, only 19 percent of the population had access to safe drinking water, and 15 percent to electricity. A quarter of the youth were not in training, education, and employment. Save the Children's Pacific regional director Kim Koch said economic growth does not necessarily equate to people being lifted out of poverty. 'Unfortunately, a lot of times, the investments in that economic growth is not always directed toward breaking poverty or addressing the safety nets that the most vulnerable families and children really need,' Koch said. The report said since gaining independent in 1975, the economy has more than tripled. However, real GDP per capita has only seen an annual increase of 0.9 percent. 'The most recent Household Income and Expenditure Survey, from 2010, revealed that 40 percent of the population lived below the national poverty line of US$2.15 per day. 'Despite the lack of an official poverty rate since 2010, household surveys suggest little change in monetary wellbeing,' it said. Koch said poverty is driving food insecurity and violence. 'Those consequences are intergenerational,' she said. 'It is hard to break the cycle of poverty unless you have specific, dedicated investments in that purpose.' She said it is often children's education, safety, and health that suffer. 'That is usually because families are investing in just their basic needs, and things like sending their kids to school, having a nutritious diet, seeking medical care are often lower on the priority list.' Fiji also struggling The report also said Fiji is struggling to raise its living standards to match its income level. The nation achieved upper-middle-income status in 2014 but 50.1 percent of the population lived under US$6.85 a day in 2024. However, extreme poverty – those living on less than US$2.15 a day – had almost been eliminated. Poverty in Fiji – those living under US$6.85 a day – is on a downward trend. It was at 52.6 percent in 2019 and projected to be at 48.7 percent in 2025 and 45.5 percent in 2027, driven by economic growth which is expected to sit at 3.2 percent in 2027. Fiji Council of Social Services executive director Vani Catanasiga said it is encouraging growth is increasing and poverty decreasing, but more could be done. 'We feel that there needs to be better effort at empowering women and youth, particularly when we look at the issues surrounding the labour force,' she said. In Solomon Islands, a phone survey by the World Bank in 2024 found about half of all households are worried about their finances. The report said food insecurity remains high, with about half the population eating less than they thought they should in the past 30 days. 'According to the 2012/13 Household Income and Expenditure Survey, 61 percent of the population was considered poor based on the lower-middle-income poverty line (US$3.65 per day),' it said. However, the economy is expected to grow by an average of 2.7 percent from 2025 to 2027 and poverty rates are projected to decline as a result.
Scoop
05-05-2025
- General
- Scoop
Poverty Persists Across PNG And Pacific Despite Economic Growth
About half of Papua New Guinea's population lives on less than US$3.65 a day, while Fiji and Solomon Islands are also struggling to raise its living standards. Caleb Fotheringham, RNZ Pacific Journalist About half of Papua New Guinea's population lives on less than US$3.65 a day, and there has been little change in monetary well being since a 2010 survey, according to the World Bank. The report said the country has some of the poorest nutrition outcomes in the world, with almost half of children under the age of five being stunted. In 2022, only 19 percent of the population had access to safe drinking water, and 15 percent to electricity. A quarter of the youth were not in training, education, and employment. Save the Children's Pacific regional director Kim Koch said economic growth does not necessarily equate to people being lifted out of poverty. 'Unfortunately, a lot of times, the investments in that economic growth is not always directed toward breaking poverty or addressing the safety nets that the most vulnerable families and children really need,' Koch said. The report said since gaining independent in 1975, the economy has more than tripled. However, real GDP per capita has only seen an annual increase of 0.9 percent. 'The most recent Household Income and Expenditure Survey, from 2010, revealed that 40 percent of the population lived below the national poverty line of US$2.15 per day. 'Despite the lack of an official poverty rate since 2010, household surveys suggest little change in monetary wellbeing,' it said. Koch said poverty is driving food insecurity and violence. 'Those consequences are intergenerational,' she said. 'It is hard to break the cycle of poverty unless you have specific, dedicated investments in that purpose.' She said it is often children's education, safety, and health that suffer. 'That is usually because families are investing in just their basic needs, and things like sending their kids to school, having a nutritious diet, seeking medical care are often lower on the priority list.' Fiji also struggling The report also said Fiji is struggling to raise its living standards to match its income level. The nation achieved upper-middle-income status in 2014 but 50.1 percent of the population lived under US$6.85 a day in 2024. However, extreme poverty – those living on less than US$2.15 a day – had almost been eliminated. Poverty in Fiji – those living under US$6.85 a day – is on a downward trend. It was at 52.6 percent in 2019 and projected to be at 48.7 percent in 2025 and 45.5 percent in 2027, driven by economic growth which is expected to sit at 3.2 percent in 2027. Fiji Council of Social Services executive director Vani Catanasiga said it is encouraging growth is increasing and poverty decreasing, but more could be done. 'We feel that there needs to be better effort at empowering women and youth, particularly when we look at the issues surrounding the labour force,' she said. In Solomon Islands, a phone survey by the World Bank in 2024 found about half of all households are worried about their finances. The report said food insecurity remains high, with about half the population eating less than they thought they should in the past 30 days. 'According to the 2012/13 Household Income and Expenditure Survey, 61 percent of the population was considered poor based on the lower-middle-income poverty line (US$3.65 per day),' it said. However, the economy is expected to grow by an average of 2.7 percent from 2025 to 2027 and poverty rates are projected to decline as a result.
