Priyanka Tiwari
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Suspense crime, Digital Desk : Efforts to reduce the level of extreme poverty have been a success in India. Based on data from the World Bank, the percentage dropped from 27.1% in 2011-12 to 5.3% in 2022-23. Moreover, this improvement has been achieved in spite of a raising USD 3 per day poverty line by the World Bank. India has successfully brought 171 million people out of extreme poverty in the past decade, showcasing the nation’s commitment towards sustainable and inclusive growth.
Pakistan Remains the Poorest Country in the Region
Pakistan’s situation, on the other hand, is alarming according to the latest report released from the World Bank:
45% of the population is classified as poor
16.5% are living in extreme poverty
42.4% is the expected poverty rate
There is an increase of 1.9 million people in poverty predicted by 2024-25
This coupled with the 2.6% economic growth rate does not seem to create any noticeable reduction in poverty levels, especially when the annual population increase is at 2%.
The Agricultural Industry is Burdened With Setbacks
The agriculture industry in Pakistan is directly impacted by:
Declining rainfall (40% decrease in 2025)
Pest issues
Changes in crop production
Estimated reductions:
Cotton: ↓ 29.6%
Rice: ↓ 1.2%
According to the World Bank, these factors have constrained agricultural development to below 2%.
The issues stemming from the Indus Waters Treaty have escalated the situation even further. With India halting the treaty, water inflow to Punjab has reduced by 15% and the levels in the major dams are at dead levels, which amplifies the risk to food supply.
Emerging Issues of Inequality and Food Scarcity in Pakistan
The World Bank has recorded a rise in consumption driven inequality which has increased by almost 2 points since FY21 and is close to 32 now. The actual figure is likely much worse as households with wealth tend to be absent in most surveys which contributes to their inaccuracy.
Some of the other alarming issues include:
10 million people facing the threat of acute food deprivation, predominantly in rural areas
Volatility resultant from shifts in global trade
Slow pace of reconstruction efforts alongside domestic and foreign economic pressures
India Expressing the Concerns of Lack of Evidence of Aid Misuse By Pakistan
With heightened tensions after the Pahalgam terror attack, India has, for the first time, expressed these concerns to the International Monetary Fund (IMF) and World Bank. It accused Pakistan of misappropriating aid funds, including misallocation of resources from the International Monetary Fund (IMF), by sustaining anti-India activities.
India’s allegation comes in light of recently released funds to Pakistan. Under the Extended Fund Facility (EFF), the IMF recently allocated 1 billion dollars to Pakistan. India contends that such funding should be subject to greater scrutiny, especially if the support is claimed to serve humanitarian needs.
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