ISLAMABAD: The World Bank updated its international poverty lines as part of a routine global revision to reflect evolving price levels and newly available data.
The new poverty lines for Pakistan, a lower middle-income country, are set at $4.20/person/day, affecting 44.7% of the population.
The extreme poverty line is now $3.00/person/day, impacting 16.5% of the population, up from 4.9% under the previous $2.15 threshold.
The upper-middle-income poverty line is $8.30/person/day, covering 88.4% of the population.
These updates to the international poverty lines are based on 2021 purchasing power parity (PPP) data from the International Comparison Program (ICP) and 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.
“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,” WB Country Director for Pakistan Najy Benhassine said.
He said the new figures reflected updated international thresholds and improved data from other countries, not a deterioration in living standards.
For domestic policy and program targeting, the national poverty line remained unchanged and continues to serve as the primary benchmark for assessing poverty within Pakistan.
The underlying Household Income and Expenditure Survey (HIES) 2018/19 data used for both national and international estimates also remain the same.
While international poverty lines are essential for tracking global progress and comparisons, national lines remain more appropriate for informing country-specific policy decisions.
The update is part of the World Bank’s Global Poverty June Update 2025, aiming to enhance the accuracy and relevance of global poverty assessments.
The forthcoming World Bank Poverty, Equity, and Resilience Assessment for Pakistan will provide critical context for interpreting these updated poverty estimates.
The report offered a detailed update on poverty, inequality, and non-monetary outcomes, investigates key drivers of poverty, and outlines a forward-looking agenda to enhance prosperity and resilience for all Pakistanis.
