ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan is responsible for approximately 48% of individuals living in extreme poverty across the Middle East, North Africa, Afghanistan and Pakistan region, based on the World Bank’s October 2026 economic report. The measure applies the international threshold of $3 daily in 2021 purchasing power parity terms. Between 2018-19 and 2024-25, Pakistan’s poverty rate at that level increased by 6.4 percentage points, making it the primary contributor to extreme poverty within the MENAAP regional group.
The World Bank indicated that Afghanistan, Syria, and Yemen together account for another 47% of the region’s population living below the $3 daily threshold. When combined with Pakistan, these four nations constitute about 95% of the region’s extreme poor. MENAAP currently accounts for roughly 14% of the global extreme poor, a share surpassed only by Sub-Saharan Africa. Furthermore, this region remains the only one within the World Bank’s classification where poverty levels remain above pre-pandemic figures and continue to grow.
Pakistan also experienced a rise at the higher $4.20-a-day poverty line, used for lower-middle-income economies. The percentage of people below this threshold increased by 3.2 percentage points from 2018-19 to 2024-25. According to World Bank data, the rate reached approximately 48% in 2024, compared to 44.7% in 2018. The report attributes this worsening situation to the COVID-19 pandemic, the floods of 2022, inflationary pressures, currency depreciation, and a prolonged period of economic adjustment.
Poverty pressures intensify following successive shocks
These latest statistics follow a significant update to the World Bank’s global poverty database in March 2026. New household survey data from Pakistan increased the estimated MENAAP extreme poverty rate for 2024 from 11.8% to 14.4%. This revision added roughly 21 million individuals to the region’s estimated number of people living in extreme poverty. In September 2026, the World Bank noted that MENAAP remained one of only two regions with extreme poverty rates above 5%, alongside Sub-Saharan Africa.
Although Pakistan’s economic growth has shown some improvement from recent lows, poverty indicators continue to be high. The October regional update projected Pakistan’s GDP growth at 3.7% for fiscal year 2025-26, with an expected 3.8% increase in fiscal 2026-27. It also estimates real GDP per capita growth at 2.1% in 2026 and 2.2% in 2027. Inflation is forecasted at 7.1% for 2026, rising to 8.2% in 2027, following a lower rate in 2025.
The regional classification influences the headline statistic
The 48% figure stems from the World Bank’s current statistical classification of MENAAP, which has included Pakistan and Afghanistan since September 2025. Prior to this change, World Bank regional data categorized both countries within South Asia. According to Pakistan’s government, this adjustment was administrative and statistical, not affecting the country’s geographic identity or income classification. Finance Minister adviser Khurram Schehzad stated that the revised grouping altered regional poverty totals by incorporating Pakistan’s large population into the MENAAP figures.
The October update from the World Bank also projects a weaker regional economy in 2026. The region’s output is expected to decline by 2.1% following a 3.3% growth in 2025, primarily due to conflict and disruptions impacting energy, logistics, and trade. Nonetheless, developing oil importers, such as Pakistan, are expected to remain relatively resilient, with growth forecasted at 4.3% for that group in 2026. However, rising food and energy costs continue to exert pressure on household purchasing power across several economies.