Break poverty cycle

2026-02-21 - 21:03

THE latest poverty estimates for 2024-25 which reveal that 28.8% of the population in Pakistan now lives in poverty, represent a sobering reality that cannot be ignored. This marks an alarming increase of nearly 7% since 2018-19, when poverty was at 21.9%. The rise in poverty is not limited to one region but is widespread across the country. The factors behind this sharp rise in poverty are reported to be multifaceted. Dependence on three IMF stabilization programmes over the last six years, combined with the devastating economic impacts of the Covid-19 pandemic, inflationary pressures and natural disasters like the super floods, have strained the nation’s economy. Additionally, the abandonment of wheat support prices and stagnation in GDP growth have left many vulnerable, making it increasingly difficult for people to meet basic needs. However, these macroeconomic challenges should not be seen as insurmountable barriers, but rather as a call to action for a comprehensive and long-term strategy to tackle poverty. In today’s digital age, where technology offers unprecedented opportunities for remote work and entrepreneurship, we have the potential to redefine our approach to poverty alleviation. One of the most critical steps is to equip the youth, especially in rural and remote areas, with the skills they need to thrive in the globalized digital economy. Programs that focus on digital literacy, vocational training and entrepreneurship can enable these young people to start businesses or engage in freelance work. While cash transfers, such as those provided through Benazir Income Support Program (BISP), are important for providing immediate relief, they cannot be seen as a sustainable solution. Cash doles may offer temporary assistance, but they do not lift people out of poverty permanently. Instead, Pakistan needs a poverty graduation program, a holistic initiative designed to help individuals and communities build self-sufficiency. Such a program should combine skills training, access to microfinance, entrepreneurial support and education to ensure that people move beyond poverty and achieve lasting economic security. The example of China offers valuable lessons in poverty reduction. Over the past few decades, China has successfully lifted millions of people out of poverty by focusing on targeted economic reforms, infrastructure development, rural revitalization and education. We can learn from this model by implementing localized strategies that address regional disparities, investing in rural development and fostering inclusive growth.