• Source:JND
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India has recorded a record reduction in poverty levels in the last decade, whereas Pakistan is experiencing a high increase in poverty rates, as per a World Bank report cited by News18. The contrast follows the revision of the World Bank's global poverty line to 3 USD per day (2017 PPP), indicating the divergent path of the two South Asian neighbours.

India's Poverty Rate Declined

India's rate of extreme poverty has declined to only 5.3 per cent in 2022-23 from 27.1 per cent in 2011-12, according to the World Bank. That is, the nation has managed to bring 171 million individuals out of extreme poverty over 10 years. The World Bank update of the poverty line seems to have had little adverse effect on India's poverty figures, indicating strong growth and focused welfare programs that have reached the lowest income groups. According to CNN-News18, India continues to bring out this information at international stages, such as the International Monetary Fund (IMF), to showcase responsible economic management.

Poverty Rate Rises In Pakistan

In sharp contrast, the poverty rate in Pakistan has risen to 44.7 per cent, with 16.5 per cent of people living in extreme poverty, according to the latest available World Bank data. The institution's April 2024 report had already reported alarming trends, projecting that 1.9 million additional Pakistanis would become poor in FY25. The World Bank cautioned that Pakistan's 2.6 per cent economic growth is "not enough to bring down poverty," considering the population growth is approaching 2 per cent per year.

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Pakistan's farming sector, which is home to about 50 per cent of the working poor, is under severe stress. The World Bank report states that crop production is expected to decline sharply in FY25. Cotton production may fall by 29.6 per cent, wheat production by 13.6 per cent, and rice production by 1.2 per cent. The agricultural slowdown has been worsened by unfavorable weather, a 40 per cent decline in precipitation, pest infestation, and water scarcity, particularly in Punjab. According to a CNN-News18 report, Indus River inflows into Pakistani Punjab have fallen by 15 per cent, partly because India suspended the Indus Waters Treaty. The situation has driven 10 million rural Pakistanis towards severe food insecurity, the report cautioned.

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Shiv Sena (UBT) MP Priyanka Chaturvedi snapped back sharply on social media and said, "Pakistan's poverty rate increases to 44.7 per cent as per the latest World Bank report. India's poverty rate drops to 5.3 per cent according to the same report. Only if the world knew that Pakistan's aid goes into arming terrorists and not to assist their poor." The World Bank further noted that consumption-based inequality in Pakistan has risen by nearly 2 percentage points since FY21, now hovering around 32. However, the real figure may be even higher, as wealthy households are often underrepresented in official surveys. India has already raised concerns at global institutions like the IMF and World Bank, questioning how Pakistan uses foreign aid, arguing that a significant portion may be diverted towards anti-India activities instead of economic development.