The latest World Bank data paints a striking contrast between two neighbours — India and Pakistan — and how differently they have tackled poverty over the past decade.
While India has successfully lifted millions out of poverty, Pakistan’s poverty levels have risen sharply, highlighting how governance and priorities shape a nation’s future.
India’s Progress: 269 Million People Out of Poverty
According to the World Bank’s Poverty and Shared Prosperity report, India’s extreme poverty rate dropped from 27.1% in 2012 to just 5.3% in 2022.
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In 2012, 344 million Indians were living in extreme poverty.
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By 2022, this number reduced to just 75 million — meaning 269 million people escaped poverty in just 11 years.
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That’s more people than the entire population of Pakistan!
This progress comes as India recently became the world’s fourth-largest economy, surpassing Japan.
Pakistan’s Setback: Poverty on the Rise
In sharp contrast, Pakistan’s extreme poverty has increased:
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In 2017, only 4.9% of Pakistan’s population was classified as extremely poor.
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By 2021, that number had jumped to 16.5%.
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Overall poverty (people living on less than $4.2 a day) also rose from 39.8% to 44.7% during this period.
Why the Difference? Governance and Priorities
Experts say India’s development-focused governance and poverty-reduction policies helped drive its success.
On the other hand, Pakistan has struggled with mismanagement of funds, a growing debt crisis, and a long-standing focus on military spending and terror financing rather than development.
Pakistan has taken:
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25 bailout packages from the IMF ($44.5 billion)
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$38.8 billion from the World Bank, ADB, Islamic Development Bank
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Over $25 billion in loans from China
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Additional loans from Saudi Arabia, UAE, and other countries.
Yet much of this money, experts say, is misused or goes into military spending rather than poverty reduction or public services.
International Voices Call for Accountability
Former Indian diplomat Ajay Bisaria said the problem lies in the Pakistani military’s grip on politics and the economy:
“Funds meant for development are often diverted to the army and terror-related activities,” he said. “Donors should ensure strict conditions so that money benefits the people, not the army.”
Another diplomat, Ashok Sajjanhar said, “Pakistan’s leadership is more focused on countering India and maintaining terror infrastructure than on improving its own economy and society.”
Economist Piyush Doshi argued that, “unless Pakistan is forced to change its spending priorities, the country will continue to face an economic and social crisis.”
The World Bank’s data sends a clear message to countries around the world, especially to the Global South:
👉 Poverty is not destiny.
👉 It is shaped by leadership, policies, and national priorities.
India’s progress shows what is possible with focused governance. Pakistan’s struggles show what happens when those in power choose military spending and external rivalries over the well-being of their own citizens.
(Inputs- NDTV)
