Fact Check: The proportion of people living in extreme poverty in Pakistan has risen from 4.9% to 16.5% based on a World Bank report using data from a 2018-19 survey.

Fact Check: "The proportion of people living in extreme poverty in Pakistan has risen from 4.9% to 16.5% based on a World Bank report using data from a 2018-19 survey."

What We Know

The claim that the proportion of people living in extreme poverty in Pakistan has increased from 4.9% to 16.5% is substantiated by a recent report from the World Bank. According to the report, the extreme poverty line was revised from $2.15 to $3 per person per day, which led to a significant increase in the poverty headcount in Pakistan. Specifically, it was noted that 16.5% of the population now lives in extreme poverty under the new threshold, up from the previous figure of 4.9% based on the old threshold (source-2). This data is derived from the Household Income and Expenditure Survey (HIES) conducted in 2018-19, which the World Bank utilized for its calculations (source-6).

Analysis

The increase in the extreme poverty rate from 4.9% to 16.5% can be attributed to the World Bank's adjustment of the international poverty line, which reflects changes in the cost of living and inflation. The new poverty line of $3 per day is more aligned with current economic conditions, thus capturing a more accurate picture of poverty in Pakistan (source-2).

However, it is crucial to note that the World Bank's calculations rely on data from the 2018-19 HIES, which does not account for subsequent economic shocks, including the COVID-19 pandemic and the 2022 floods that severely impacted the country (source-2). This reliance on outdated data may limit the accuracy of the current poverty estimates, as the economic conditions have likely changed since the survey was conducted.

The credibility of the World Bank as a source is generally high, given its extensive research and data collection capabilities. However, the potential for bias exists, particularly in how poverty thresholds are defined and adjusted, as these can significantly influence policy decisions and public perception (source-6).

Conclusion

The claim that the proportion of people living in extreme poverty in Pakistan has risen from 4.9% to 16.5% is True. This increase is based on the World Bank's revised poverty thresholds and the data from the 2018-19 HIES. While the methodology and the source are credible, the reliance on outdated data raises concerns about the current applicability of these figures.

Sources

1. PDF NATIONAL POVERTY & INEQUALITY REPORT - pc.gov.pk
2. Pakistan's poverty rate rises to 44.7% under new World Bank thresholds
3. Latest Electricity Price Per Unit in Pakistan 2024
4. 45pc of Pakistanis live below poverty line: WB - Business - Dawn
5. 14 Pakistani Universities in QS World University Rankings 2024
6. WB readjusts poverty line in Pakistan at 44.7% - The Express Tribune
7. Talk Shows - ForumPakistan.com
8. PDF Pakistan - World Bank