From Bailouts to Breakthroughs: India’s Anti-Poverty Drive Leaves Pakistan Reeling

Unknown Apr 02, 2026 750 Views

A stunning new World Bank report maps a growing divergence between India and Pakistan in the fight against poverty, with India posting record advances while Pakistan's poverty disaster worsens. Key Highlights: India's Extreme Poverty Rate Falls Sharply:...

A stunning new World Bank report maps a growing divergence between India and Pakistan in the fight against poverty, with India posting record advances while Pakistan's poverty disaster worsens.

Key Highlights:

India's Extreme Poverty Rate Falls Sharply:

India's poverty at the extreme level decreased from 27.1% during 2011-12 to a mere 5.3% in 2022-23 as the World Bank raised the international poverty line from $2.15 to $3 per day.
The number of Indians who were extremely poor declined from 344.47 million to 75.24 million—a staggering 269 million people out of the clutches of extreme poverty in over a decade.
According to the $4.20 a day lower-middle-income country poverty line, the poverty in India declined to 23.9% in 2022-23 from 57.7% in 2011-12.
Growth was driven by strong economic development, subsidized welfare schemes, enhanced food security, and narrowing rural-urban poverty gaps.

Pakistan's Poverty Crisis Deepens:

Pakistan's poverty level, comparatively, stands at 42.4%, and 16.5% live in extreme poverty as of 2024-25.
Nearly 1.9 million more Pakistanis fell into poverty this year, as GDP growth was stagnant at 2.6%, much lower than the amount required to reduce poverty.
The country's agriculture sector is severely affected after a 40% drop in rain, pest infestation, and a decrease in crop yields, threatening the livelihood of 10 million people.
Pakistan continues to rely on foreign bailouts and loans with little impact on poverty reduction.

Implications Globally:

The World Bank report comes out while India is the world's fourth-largest economy and while Pakistan is coming under mounting pressure over the abuse of international aid.
India's success story is being called upon as an evidence-based model of governance and reform, while Pakistan's trajectory is questioning governance and policy priorities.

The Bottom Line:

India's record-breaking poverty decline is sharply contrasted with the deepening crisis in Pakistan, underscoring the influence of governance, economic policy, and foreign aid on the destiny of neighboring nations.

Source: NDTV, Times of India, Moneycontrol, News18, Goodreturns, PIB

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