Pakistan’s poverty reversal: A call for people-centred structural reforms

Islamabad: In a stark revelation, Mian Zahid Hussain, a prominent figure in Pakistan’s business community, has highlighted a troubling increase in poverty, as reported by The World Bank. The report points to policy failures and the breakdown of an unsustainable growth model as key reasons for this setback. According to Hussain, poverty rates are projected to rise sharply from 21.9% in 2018–19 to 25.3% by 2024–25, potentially pushing 17 to 18 million more Pakistanis into impoverishment.

Pakistan’s economy, described as structurally fragile, is heavily dependent on remittances and domestic consumption. This reliance fails to generate sufficient high-productivity employment opportunities, leaving the emerging middle class—approximately 42.7% of the population and mainly informally employed—vulnerable to economic disruptions like inflation, natural disasters, and persistent macroeconomic instability.

Hussain expressed grave concern over the human capital crisis, which he claims is mortgaging the nation’s future. With alarming rates of child stunting at 40% and three-quarters of primary school children struggling with basic literacy, the workforce is inadequately equipped with the necessary skills. The disparity in poverty levels between rural and urban areas further stresses the need for a strategic shift in national policies.

In his statement, Hussain underscored the business sector’s dedication to charting a new course of development. He echoed The World Bank’s recommendation for bold, people-focused reforms, calling them a vital national mandate. He emphasized the necessity for effective debt management, prudent spending, and enhanced trade liberalization to encourage private sector investments and generate high-quality jobs.

Hussain advocated for significant investments in education, water, and sanitation to break the cycle of poverty. He cautioned against temporary solutions, urging a focus on human capital and foundational reforms to ensure a resilient and sustainable future for Pakistan.