New Delhi: In recent data released by the World Bank, India has demonstrated a dramatic reduction in poverty, standing as a powerful example of successful governance and smart economic planning. In stark contrast, Pakistan’s deepening economic struggles point to persistent mismanagement, growing debt, and counterproductive policy priorities.
Over the past decade, India has followed a clear path focused on economic growth and inclusive development. This strategy has paid off. Even after the global poverty benchmark was raised from \$2.15 to \$3 per day to reflect real-world conditions, India’s achievements remain remarkable. The World Bank’s Poverty and Shared Prosperity report confirms that India reduced its extreme poverty rate from 27.1 percent in 2012 to just 5.3 percent in 2022. This translated into a drop from 344 million people in poverty to 75 million in just over a decade, a decline greater than Pakistan’s entire population.
Pakistan’s trajectory has been the opposite. Between 2017 and 2021, the proportion of its population living in extreme poverty jumped from 4.9 percent to 16.5 percent. When measured using a \$4.2 per day threshold, the poverty headcount rose to over 44.7 percent. Analysts suggest these numbers could be even worse due to outdated national surveys and a lack of transparency.
Financial dependence is another major issue. Pakistan has received 25 IMF bailouts totaling \$44.57 billion, borrowed \$38.8 billion from global financial institutions, taken over \$25 billion in loans from China, and issued \$7.8 billion in Eurobond and Sukuk debt. Additional funds from countries like Saudi Arabia and the UAE have also poured in. Yet, much of this money is reported to be diverted to the military, which is repeatedly accused of supporting cross-border terrorism instead of focusing on national development.
Experts highlight that without addressing the overreach of the military in economic and political affairs, international support will continue to be misused. Calls have been made for aid conditions that promote transparency and development rather than fueling instability.
India and Pakistan today present a clear contrast for the Global South. One nation’s progress shows what is possible with stable leadership and people-centered policies. The other reveals the cost of misplaced priorities and systemic dysfunction. This story is a reminder that poverty is not destiny. It is a result of leadership, policy direction, and national will.
India’s Poverty Plunge and Pakistan’s Debt Spiral: What the World Bank Reveals
