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World Bank Data On India And Pakistan Shows Massive Contrast Over Poverty

Latest data released by the World Bank shows the tale of two countries - India and Pakistan - and their journey to battle poverty - a colonial inheritance.
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World Bank Data Highlights Stark Contrast in Poverty Reduction Between India and Pakistan
New Delhi:
Recent World Bank statistics illuminate a compelling narrative of two neighboring South Asian nations - India and Pakistan - and their divergent paths in combating poverty inherited from colonial times. The comparative analysis over the past decade and a half reveals dramatically different outcomes resulting from contrasting national priorities.
The newly released data compares India's poverty metrics between 2011-12 and 2022-23, while for Pakistan, it examines the period between 2017-18 and 2020-21. This information emerges as India recently celebrated surpassing Japan to become the world's fourth-largest economy, while Pakistan secured yet another IMF bailout package amid ongoing economic struggles.
India's remarkable progress stems from its governance model prioritizing development and poverty alleviation, whereas Pakistan's economic challenges reflect its resource misallocation and focus on terror-related policies.
DETAILED FINDINGS
The World Bank has adjusted its global income threshold for extreme poverty from $2.15 to $3 per person daily. Despite this upward revision, India's extreme poverty rate plummeted from 27.1% to 5.3% between 2012 and 2022.
According to the Poverty and Shared Prosperity report, India reduced its extremely poor population from 344.47 million in 2011-12 to 75.24 million in 2022-23. This remarkable achievement means 269 million people - exceeding Pakistan's entire population - were lifted out of extreme poverty in just 11 years.
Conversely, Pakistan's situation has deteriorated substantially. Its extreme poverty rate increased from 4.9% to 16.5% in less than five years (2017-2021). Experts suggest the reality may be worse due to outdated household survey methodologies. Additionally, Pakistan's overall poverty headcount at $4.2 per person daily rose from 39.8% in 2017 to over 44.7% by 2021.
Meanwhile, Pakistan's economy remains dependent on external financing, having received 25 IMF bailout packages totaling $44.57 billion, plus $38.8 billion from development banks. Chinese loans exceed $25 billion, with additional $7.8 billion from international bonds and significant support from Saudi Arabia, UAE, and Paris Club creditors.
'MISALLOCATION OF RESOURCES'
Pakistan has faced repeated criticism from international financial institutions for its lack of fiscal transparency. The country's fixation on competing with India has resulted in disproportionate spending on its military establishment, which pursues a strategy of "bleeding India with a thousand cuts" through asymmetric warfare, terror infrastructure, and support for cross-border terrorism.
Former Indian High Commissioner to Pakistan Ajay Bisaria told NDTV, "The world cannot fix the Pakistan problem unless the structural problem of Pakistan army's overwhelming presence in politics and economy is fixed. Pakistan's army controls the allocation of resources. So, all the funds that are sent either via bilateral donors or multilateral donors ends up being misused by the army and in building the terror machinery. All donors will do well to get a wake-up call from the data which shows that only the Pakistani army is getting enriched by its bailouts."
"The world will do well to put strong FATF-like conditions to monitor the aid money that goes to Pakistan to ensure funds are used for development and the benefit of the people of Pakistan," he added.
Former Ambassador Ashok Sajjanhar observed that "The Pakistani government's priorities focus mainly on defence purchases on one end, and building a terror apparatus on the other end. Growth and development are phrases that are unheard of in Pakistani politics, as all governments have an unhealthy obsession with bringing India down, economically, politically and socially, rather than focusing on its own pressing domestic issues."
"But dismantling terror factories are not on Pakistan's agenda since most continue to indulge in falsehoods. When Congressman Brad Sherman told Pakistan to end terror, he also spoke on behalf of millions of Pakistanis who see their development funds being funneled away towards terror and towards fulfilling the inflated egos of Pakistani generals," he added.
Economist Piyush Doshi, co-founder of the Foundation for Economic Development, stated: "Pakistan spending money in defence, particularly when it comes at the cost of very important development expenditure, is illogical. The world will be doing the people of Pakistan a favour by blacklisting the country, which will then force them to make rational choices and using funds to benefit its citizens."
This World Bank data tells a powerful story of two neighboring nations - one advancing steadily while the other faces decline. Both set examples for the Global South - demonstrating paths to follow and to avoid. The conclusion is evident: Poverty results from policy choices, leadership decisions, and political will rather than destiny.