Skip to content
Search

Latest Stories

Pakistan’s 95 million people under poverty: World Bank

The lender urges Islamabad to take urgent steps to tax its agriculture and real estate sectors

Pakistan’s 95 million people under poverty: World Bank

POVERTY in Pakistan shot up to 39.4 per cent as of last fiscal year, with 12.5 million more people falling into the trap due to poor economic conditions, the World Bank has said.

It urged the cash-strapped country to take urgent steps to achieve financial stability.

The Washington-based lender on Friday (22) unveiled draft policy notes that it prepared with the help of all stakeholders for Pakistan's next government ahead of the new election cycle, The Express Tribune newspaper reported.

Poverty in Pakistan rose within one year from 34.2 per cent to 39.4 per cent, with 12.5 million more people falling below the poverty line of the $3.65 per day income level, according to the World Bank. About 95 million Pakistanis now live in poverty, it said.

Pakistan's economic model is no longer reducing poverty, and the living standards have fallen behind peer countries, said Tobias Haque, the World Bank's lead country economist for Pakistan.

The global lender urged Pakistan to take urgent steps to tax its 'sacred cows' agriculture and real estate and cut wasteful expenditures in an effort to achieve economic stability.

Pointing out that the increase in poverty was consistent with ground realities, the World Bank identified low human development, unsustainable fiscal situation, over-regulated private sector, agriculture and energy sectors as the priority areas for reforms for the next government.

The lender's note on strengthening government revenues showed a host of measures to improve the revenue-to-GDP ratio by five per cent through the withdrawal of tax exemptions and increasing the burden of taxes on the real estate and the agriculture sectors.

“The World Bank is deeply concerned about the economic situation of today,” Haque said.

He added that Pakistan is facing serious economic and human development crises, and is at a point where major policy shifts are required.

This may be Pakistan's moment for significant policy shift, said Najy Benhassine, the country director for Pakistan at the World Bank.

Pakistan has the capacity to collect taxes equal to 22 per cent of the GDP, but its current ratio is only 10.2 per cent showing a gap of more than half, according to the World Bank note.

The lender proposed reducing distortive exemptions to generate taxes equal to two per cent of the GDP. It wanted an increase in taxes on land and property to collect another two per cent of GDP in revenues and generate another one per cent of the GDP from the agriculture sector.

The World Bank proposed a mandatory use of CNIC (Computerised National Identity Card) for transactions, particularly of assets.

(PTI)

More For You

british-muslims-iStock

The study noted that this identification was not due to any doctrinal obligation but was influenced by the perception that many Muslims do not feel fully accepted as British. (Representational image: iStock)

iStock

Majority of British Muslims identify by faith first, study finds

A STUDY by the Institute for the Impact of Faith in Life (IIFL) has found that most British Muslims identify primarily with their religion rather than their nationality.

The research, based on a survey of 815 British Muslim adults by Whitestone Insight, revealed that 71 per cent of respondents identified as Muslim first, while 27 per cent identified as British, English, or Scottish first.

Keep ReadingShow less
Car Tax Changes: EV Owners Now Required to Pay for the First Time

Owners of electric vehicles registered on or after 1 April 2025 will pay £10 for the first year, followed by the standard VED rate of £195 from the second year. (Representational image: iStock)

iStock

Car tax changes take effect: EV owners to pay for first time

FROM today, 1 April 2025, electric cars, vans, and motorcycles in the UK will be subject to Vehicle Excise Duty (VED) for the first time.

The change, introduced in the 2022 Autumn Statement by former Conservative Chancellor Jeremy Hunt, aims to make motoring taxation fairer.

Keep ReadingShow less
scotland-minimum-wages-iStock

Full-time workers on the National Living Wage will receive an annual pay increase of £1,400 in real terms. (Representational image: iStock)

iStock

Wage increase takes effect for thousands of workers in Scotland

HUNDREDS of thousands of workers in Scotland will see a pay increase as new National Living Wage and National Minimum Wage rates take effect from Tuesday.

The changes will benefit approximately 220,000 people, according to STV News.

Keep ReadingShow less
uk-energy-bill-iStock

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased (Representational image: iStock)

iStock

April bill increases put financial strain on single parents

A RANGE of essential household bills are increasing from April, with Citizens Advice warning that single parents will be among the hardest hit.

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased, BBC reported.

Keep ReadingShow less
Netflix drama Adolescence to be screened in UK schools
Stephen Graham and Owen Cooper in 'Adolescence'
Netflix

Netflix drama Adolescence to be screened in UK schools

THE NETFLIX drama Adolescence will be shown in UK secondary schools as part of efforts to address harmful online influences on young boys, officials announced on Monday.

The show has sparked debate over the impact of toxic and misogynistic content on the internet. Prime minister Keir Starmer met the show's creators, charities, and young people at Downing Street, calling the initiative an important step in starting discussions about the content teenagers are exposed to online.

Keep ReadingShow less