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 (WB) has said, as it urged the cash-strapped country to take urgent steps to achieve financial stability, reports NDTV.
The WB on Friday unveiled draft policy notes that it prepared with the help of all stakeholders for Pakistan's next government ahead of the new election cycle.
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. 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 through steep fiscal adjustment of over 7 per cent of the economy.
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.
Bd-pratidin English/Golam Rosul
