<p>As Pakistan continues to reel under a grave economic crisis, the World Bank has now declared that the country’s current economic model is unfit for reducing poverty.</p>

<p>The warning came as over 12.5 million people fell below the poverty line in Pakistan in the last year alone. It means that over 40 per cent population in the South Asian country is now living under the poverty line as they struggle to meet basic needs such as food, water and electricity.</p>

<p>The poverty level in Pakistan rose to 39.4 per cent from 34 per cent in just one year, with a whopping 95 million Pakistanis now surviving off of less than $3.65 per day.</p>

<h2><strong>Pakistan’s standing in South Asia</strong></h2>

<p>According to World Bank data, Pakistan’s average real per capita growth rate was just 1.7 per cent between 2000 and 2020. It is less than half of the average growth (4 per cent) registered by all South Asian countries.</p>

<p><strong>Watch:&nbsp;Gravitas: Pak Minister's shocker, calls Pakistan 'birthplace of Hinduism'</strong></p>

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<p>“While Pakistan’s per capita income was among the highest in South Asia during the 1980s, it is now among the lowest in the region,” the World Bank noted in its report.</p>

<h2><strong>What next?</strong></h2>

<p>The financial leaders at the World Bank have advised Pakistan to undertake major foreign policy shifts to get the troubled economy back on track.</p>

<p>"Pakistan's economic model is no longer reducing poverty, and the living standards have fallen behind peer countries," said Tobias Haque, the World Bank's lead country economist for Pakistan.</p>

<p><a href="https://www.wionews.com/world/uae-imposes-ban-on-fresh-meat-imports-from-pakistan-638312"><strong>Also read:&nbsp;UAE imposes ban on fresh meat imports from Pakistan after fungus detection</strong></a></p>

<p>"This may be Pakistan's moment for significant policy shift," said Najy Benhassine, the country director for Pakistan at the World Bank.</p>

<p>Among other issues, the World Bank has identified low human development, unsustainable fiscal situation, over-regulated private sector, agriculture and energy sectors as the factors behind nominal growth in Pakistan’s economy.</p>

<h2><strong>Suggestions by the World Bank</strong></h2>

<p>The World Bank recommends that Pakistan should promptly raise its tax-to-GDP ratio by 5 per cent while simultaneously reducing expenditures by approximately 2.7 per cent of GDP.&nbsp;</p>

<p>These measures are aimed at restoring the sustainability of the economy and steering it towards a responsible fiscal trajectory.&nbsp;</p>

<p>According to the Washington-based institution, their proposal to enhance the revenue-to-GDP ratio by 5 per cent encompasses the elimination of tax exemptions and an increased tax burden on both the real estate and heavily subsidised agriculture sectors.</p>

<p>Currently, Pakistan's capacity for tax collection stands at 22 per cent of GDP, but the actual ratio lags significantly behind at only 10.2 per cent, as reported by the World Bank.&nbsp;</p>

<p>To address this gap, the lender suggests the reduction of distorting exemptions to generate an additional 2 per cent of GDP in tax revenue. Additionally, they recommend raising taxes on land and property to yield another 2 per cent of GDP in revenue, along with generating an extra 1 per cent of GDP from the agriculture sector.</p>

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As Pakistan continues to reel under a grave economic crisis, the World Bank has now declared that the country’s current economic model is unfit for reducing poverty.

As Pakistan continues to reel under a grave economic crisis, the World Bank has now declared that the country’s current economic model is unfit for reducing poverty. The warning came as over 12.5 million people fell below the poverty line in Pakistan in the last year alone. It means that over 40 per cent population in the South Asian country is now living under the poverty line as they struggle to meet basic needs such as food, water and electricity. The poverty level in Pakistan rose to 39.4 per cent from 34 per cent in just one year, with a whopping 95 million Pakistanis now surviving off of less than $3.65 per day. Pakistan’s standing in South Asia According to World Bank data, Pakistan’s average real per capita growth rate was just 1.7 per cent between 2000 and 2020. It is less than half of the average growth (4 per cent) registered by all South Asian countries. Watch: Gravitas: Pak Minister's shocker, calls Pakistan 'birthplace of Hinduism' × “While Pakistan’s per capita income was among the highest in South Asia during the 1980s, it is now among the lowest in the region,” the World Bank noted in its report. What next? The financial leaders at the World Bank have advised Pakistan to undertake major foreign policy shifts to get the troubled economy back on track. "Pakistan's economic model is no longer reducing poverty, and the living standards have fallen behind peer countries," said Tobias Haque, the World Bank's lead country economist for Pakistan. Also read: UAE imposes ban on fresh meat imports from Pakistan after fungus detection "This may be Pakistan's moment for significant policy shift," said Najy Benhassine, the country director for Pakistan at the World Bank. Among other issues, the World Bank has identified low human development, unsustainable fiscal situation, over-regulated private sector, agriculture and energy sectors as the factors behind nominal growth in Pakistan’s economy. Suggestions by the World Bank The World Bank recommends that Pakistan should promptly raise its tax-to-GDP ratio by 5 per cent while simultaneously reducing expenditures by approximately 2.7 per cent of GDP. These measures are aimed at restoring the sustainability of the economy and steering it towards a responsible fiscal trajectory. According to the Washington-based institution, their proposal to enhance the revenue-to-GDP ratio by 5 per cent encompasses the elimination of tax exemptions and an increased tax burden on both the real estate and heavily subsidised agriculture sectors. Currently, Pakistan's capacity for tax collection stands at 22 per cent of GDP, but the actual ratio lags significantly behind at only 10.2 per cent, as reported by the World Bank. To address this gap, the lender suggests the reduction of distorting exemptions to generate an additional 2 per cent of GDP in tax revenue. Additionally, they recommend raising taxes on land and property to yield another 2 per cent of GDP in revenue, along with generating an extra 1 per cent of GDP from the agriculture sector. WATCH WION LIVE HERE ×

Pakistan: 40% population slips below poverty line, World Bank sounds alarm bell

<p>The Indian government&#39;s think tank Niti Aayog will soon set up an expert panel to arrive at a new poverty line, according to an official.</p>

<p>&quot;We have said that we needed an expert committee to look at poverty line as most states are not much in sync with each other... We have not formed an expert committee yet but soon we will set up an expert committee to look at poverty line,&quot; said a senior government official.</p>

<p>Pursuant to the decision taken at the first meeting of the Governing Council of NITI Aayog held under the chairmanship of Prime Minister Narendra Modi on February 8, 2015, a Task Force on Elimination of&nbsp;Poverty in India was constituted by NITI Aayog on March 16, 2015 under the chairmanship of Arvind Panagariya, vice chairman, NITI Aayog.</p>

<p>The report of the Task Force was submitted to the Prime Minister on July 11, 2016.</p>

<p>It recommended setting up of an expert committee to arrive at an informed decision on the level at which the poverty line should be set because &#39;a consensus in favour of either the Tendulkar or a higher poverty line&#39; did not emerge.</p>

<p>The current poverty estimates are based on the methodology recommended by the Expert Group under the chairmanship of Suresh D Tendulkar in 2009.</p>

<p>According the Tendulkar committee methodology, those whose daily consumption of goods and services exceeds Rs&nbsp;33.33&nbsp;(0.49 US Dollar)&nbsp;in cities and Rs 27.20&nbsp;(0.4 US Dollar) in villages are not poor.</p>

<p>As per these numbers, only 22 per cent of the people can be classified as poor in the country.</p>

<p>(PTI)</p>


The expert committee that will be formed will look at arriving at a new poverty line

The Indian government's think tank Niti Aayog will soon set up an expert panel to arrive at a new poverty line, according to an official. "We have said that we needed an expert committee to look at poverty line as most states are not much in sync with each other... We have not formed an expert committee yet but soon we will set up an expert committee to look at poverty line," said a senior government official. Pursuant to the decision taken at the first meeting of the Governing Council of NITI Aayog held under the chairmanship of Prime Minister Narendra Modi on February 8, 2015, a Task Force on Elimination of Poverty in India was constituted by NITI Aayog on March 16, 2015 under the chairmanship of Arvind Panagariya, vice chairman, NITI Aayog. The report of the Task Force was submitted to the Prime Minister on July 11, 2016. It recommended setting up of an expert committee to arrive at an informed decision on the level at which the poverty line should be set because 'a consensus in favour of either the Tendulkar or a higher poverty line' did not emerge. The current poverty estimates are based on the methodology recommended by the Expert Group under the chairmanship of Suresh D Tendulkar in 2009. According the Tendulkar committee methodology, those whose daily consumption of goods and services exceeds Rs 33.33 (0.49 US Dollar) in cities and Rs 27.20 (0.4 US Dollar) in villages are not poor. As per these numbers, only 22 per cent of the people can be classified as poor in the country. (PTI)

Indian govt think-tank NITI Aayog to set up panel on poverty line

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