A recent report by the World Bank (WB) has expressed concern over the rising poverty rate in Pakistan and emphasized the immediate need for long -term, inclusive reforms for the protection of the country’s weakest communities. According to the latest report, the poverty rate has increased by 7% in the last three years, which will be 25.3% by 2024-25. Removing the speed towards prosperity: This report titled Poverty, Equality and Flexibility of Pakistan “represents the first intensive investigation of poverty and welfare in Pakistan over two decades, as Dawn has exposed in his coverage.
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The study uses data of domestic surveys, spatial analysis, estimates and more than 25 years from various administrative sources. Dawn said that the national poverty rate is growing again from 2020 after a steady decline in 2001-02 to 21.9% in 2018-19. The World Bank attributes this reversal to many overlapping crises including Kovid-19 epidemic, inflation pressure, severe floods and comprehensive economic instability. In addition, it notes that the initial benefits of poverty reduction were powered by the consumption-based growth model, which is now abolished. According to Dawn, the report found that a major reason for the earlier reduction in poverty was an increase in income from non-agricultural labor, as many families were transferring from farming to service sector jobs.
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However, Pakistan’s structural change has been slow and uneven, which has limited employment creation, diversification and productivity. The study also underlines the challenges of informal employment, which is still responsible for more than 85% of jobs, and also suggests that women and youth are still out of labor force. Apart from economic concerns, the report also highlights serious social deficiencies. According to Dawn’s report, about 40% of Pakistani children are victims of dwarfness, one-fourth of children receiving primary education do not go to school, and three of those who go, three-fourths struggle with the understanding of basic reading.