Key Takeaways
- The government states that the World Bank's poverty figures for Pakistan reflect a regional reclassification, not a change in the country's economic status.
- Pakistan accounts for 48% of the extreme poor in the MENAAP region, according to the World Bank's latest update.
- The government warns against misinterpreting the findings as evidence of a sudden shift in poverty levels.
The government has clarified that the World Bank's recent findings, which indicate that Pakistan accounts for nearly half of the extreme poor in the Middle East, North Africa, Afghanistan and Pakistan (MENAAP) region, are due to a statistical reclassification rather than a change in the country's economic or geographical status.
In a statement on social media platform X, Adviser to the Finance Minister Khurram Schehzad emphasized that the inclusion of Pakistan in the MENAAP reporting region is an administrative and statistical reclassification, not a reflection of Pakistan's geographical identity or economic classification.
Schehzad stated, 'It does not alter Pakistan’s geographical identity as a South Asian country, and it does not change Pakistan’s income classification.'
The World Bank's latest MENAAP economic update revealed that Pakistan's poverty rate had risen by 6.4 percentage points between 2018-19 and 2024-25, accounting for 48% of the region's people living below the $3-a-day extreme poverty line in 2024.
Schehzad cautioned against interpreting the findings as evidence of a sudden shift in poverty levels, stating, 'The correct interpretation is therefore that Pakistan has been reassigned to the World Bank’s MENAAP reporting region.'
The World Bank reported that 14.3% of the region's population lived on less than $3 a day in 2024, compared to 10.4% globally, with Pakistan driving much of the deterioration in poverty rates.
The government highlighted that Pakistan's poverty rate had risen following a series of economic shocks, including the COVID-19 pandemic, the 2022 floods, high inflation, currency depreciation, and a prolonged period of economic adjustment.
Schehzad added, 'Regional classifications should not be confused with geography, economic development or national identity.'
The World Bank noted that the MENAAP region is the only region where poverty remains above pre-pandemic levels and continues to rise, with Pakistan being a significant contributor to this trend.
It does not alter Pakistan’s geographical identity as a South Asian country, and it does not change Pakistan’s income classification.
Adviser to the Finance Minister Khurram Schehzad, Adviser to the Finance Minister
The correct interpretation is therefore that Pakistan has been reassigned to the World Bank’s MENAAP reporting region.
Adviser to the Finance Minister Khurram Schehzad, Adviser to the Finance Minister
