New Delhi: The latest data released by the World Bank has drawn a powerful comparison between India and Pakistan’s efforts to combat poverty, exposing a stark contrast in priorities, governance, and economic direction over the past decade and a half.
The data, which analyses poverty in India from 2011-12 to 2022-23 and in Pakistan from 2017-18 to 2020-21, paints two very different pictures. India has witnessed a dramatic reduction in poverty, while Pakistan has seen a concerning rise. These figures are made even more relevant by the current global context: India has recently overtaken Japan to become the world’s fourth-largest economy, while Pakistan continues to depend heavily on international bailouts for survival.
The World Bank has revised its global poverty threshold to $3 per person per day, up from the earlier $2.15, factoring in inflation. Under this new metric, India’s extreme poverty rate fell from 27.1% in 2011-12 to just 5.3% in 2022-23. In real numbers, this means India lifted over 269 million people out of extreme poverty in 11 years—more than Pakistan’s total population. The number of people living in extreme poverty in India dropped from 344 million to 75 million, showcasing the impact of sustained development and poverty-alleviation initiatives.
Pakistan, however, tells a different story. Between 2017 and 2021, extreme poverty rose from 4.9% to 16.5%, with broader poverty (at $4.2 per person per day) increasing from 39.8% to 44.7%. Experts warn these figures could be underestimates due to outdated survey methods. Pakistan’s growing reliance on external aid further highlights its economic challenges. The country has accepted 25 IMF bailouts worth over $44.5 billion, and an additional $70+ billion in loans from the World Bank, ADB, China, and other sources.
Critics argue that the root of Pakistan’s economic troubles lies in poor governance, lack of transparency, and a misallocation of resources—especially the disproportionate funding of its military. Former Indian High Commissioner to Pakistan, Ajay Bisaria, stated that unless the Pakistani army’s dominant role in politics and the economy is curbed, international aid will continue to be misused. “The Pakistani army benefits the most from these bailouts while ordinary citizens remain neglected,” he said, calling for strict conditions like those under FATF to monitor aid usage.
Echoing these sentiments, former Ambassador Ashok Sajjanhar added that Pakistan’s government continues to prioritise defence and terror infrastructure over development. “Their obsession with countering India outweighs the urgency to resolve domestic issues,” he said.
Economist Piyush Doshi argued that Pakistan’s defence expenditure at the cost of basic development is “irrational,” suggesting that tougher international measures might compel the country to redirect funds towards its citizens’ welfare.
This latest World Bank report tells a powerful story of two neighbours: one rising due to strategic policy, leadership, and investment in people, and the other struggling under the weight of internal dysfunction and misplaced priorities. It is a lesson for the Global South — that poverty is not inevitable, but a consequence of decisions made by those in power.
