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flag Pakistan's poverty rate rose to 25.3% in 2024-25 due to crises and structural issues, reversing years of progress.

flag Pakistan's poverty rate rose to 25.3% in 2024-25, reversing a decades-long decline from 64.3% in 2001-02 to 21.9% in 2018-19, according to a new World Bank report. flag The increase, driven by overlapping crises including the pandemic, inflation, severe flooding, and economic instability, marks a 7 percentage point rise over three years. flag Structural challenges such as slow economic transformation, limited job creation, and widespread informal work—over 85% of jobs—have hindered progress. flag Women and youth remain underrepresented in the labor market, while deep social deficits persist, including high child stunting, low school enrollment, poor literacy, and inadequate access to clean water and sanitation. flag Rural poverty remains more than double urban levels, and many regions face conditions similar to decades ago. flag The World Bank calls for urgent, inclusive reforms to strengthen resilience, expand social safety nets, improve public services, and promote equitable growth.

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