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Poverty reduction stalls despite growth | The Express Tribune
Fiscal, labour, social reforms can stop Pakistan sliding back into poverty trap after 20 years of progress, say expert
Pakistan would soon move to a path of poverty reduction and improvement in other socio-economic indices, Dar says. PHOTO: REUTERS
KARACHI:
Pakistan’s progress in poverty reduction has stalled after nearly two decades of steady gains, experts warned at the Fifth Annual International Conference of the School of Economics and Social Sciences (SESS), Institute of Business Administration (IBA), held on November 13-14, 2025, under the theme “A New Global Order, Yet Again.”
During a panel titled “Pakistan at a Crossroads: Poverty, Growth, and the Global Shift,” economists, policymakers, and development experts discussed the World Bank’s first comprehensive Poverty Assessment Report in twenty years. The report shows that while Pakistan made remarkable progress between 2001 and 2015 – reducing poverty from 64.3% to 21.9% – those gains have stalled or reversed since 2018-19 due to overlapping economic, political, and environmental shocks.
The study attributes earlier success mainly to a shift from agricultural to non-agricultural income, driven by labour migration into services and non-manufacturing sectors. Nearly 57% of poverty reduction came from non-agricultural labour income. But this transition has now reached its limits. Most new jobs are low-wage and low-productivity, concentrated in informal retail and services that fail to lift households from vulnerability.
Remittances, once a crucial poverty buffer, are also losing impact. Though still vital for foreign exchange, their benefits are uneven. The poorest 20% of households rarely send workers abroad and rely on domestic migration to cities. Adjusted for inflation, real remittances are declining, reducing poor families’ resilience to shocks. Experts noted that Pakistan’s labour market remains highly informalabout 85% of employment offers no social protection. Nearly half the population is outside the labour force, while female participation remains stagnant at 25%, largely in low-paid farm work. Even more worrying, 37% of youth are neither in education, employment, nor training, the highest NEET rate in South Asia.
Panellists warned that such fragility leaves millions hovering just above the poverty line. “A single shock, whether inflation, illness, or job loss, can push entire families back into poverty,” said Maria Qazi of the World Bank. Public service access is also weak: only 4.3% of households have daily access to piped water, revealing deep structural flaws in human development.
Fiscal and policy challenges dominated much of the debate. Wasif Ali Memon, Chairman of the Sindh Revenue Board, called for progressive taxation and decentralised revenue collection. “Pakistan’s fiscal structure depends too heavily on indirect taxes and an informal economy that makes up nearly 80% of GDP,” he said. “We must broaden the tax base, raise the tax-to-GDP ratio, and strengthen institutional capacity to finance poverty reduction sustainably.”
Christina Wieser, Senior Economist at the World Bank, urged policymakers to go beyond short-term cash transfer programmes like the Benazir Income Support Programme (BISP). “BISP cushions the poorest households,” she said, “but sustainable poverty reduction needs jobs, education, and gender-inclusive economic opportunities.” Economist and journalist Khurrum Husain noted that Pakistan’s growth has become disconnected from poverty outcomes. “We saw poverty stall even during growth years,” he said. “Our growth is consumption-driven and informalit doesn’t create sustainable livelihoods. The rich pay less and gain more.” Without redistributive reform, he warned, inequality will widen further.
Economist Asad Syed described Pakistan’s economic model as “dependent on geopolitical rents rather than productive investment.” He said the country’s investment rate, barely 2% of GDP, is far below regional peers. “We must move from speculative profits to a productive, equitable model of growth,” he urged, warning that dependence on external rents and neoliberal policies deepens inequality. The conference’s concluding session, “What is New in the New World Order?” shifted focus to global dynamics. Neelum Nigar of the Ministry of Finance said the world is now “multipolar, fragmented, and interdependent,” and urged developing nations to reassess their place in global governance. “The question is not just who participates,” she said, “but who benefits.”
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Foreign Portfolio Investors put Rs 19,675 crore into Indian equities in early February, ending three months of selling amid global cues and a US-India trade pact.
US-India trade deal hopes lift FPI inflows to Rs 19,675 cr in early Feb
Foreign Portfolio Investors Reverse Trend With Rs 19,675 Crore February Buying: Foreign Portfolio Investors (FPIs) made a notable comeback in early February, infusing Rs 19,675 crore into Indian equities during the first half of the month, aided by improving global conditions and the US-India trade agreement.
This marks a clear shift after three consecutive months of net selling. Depository data shows FPIs withdrew Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November.
Even with the renewed buying in February, the broader trend for 2025 remains negative. So far this year, foreign investors have pulled out a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities, making it one of the weakest periods for overseas inflows in recent times. Currency volatility, global trade tensions, concerns over potential US tariffs, and elevated valuations had weighed heavily on flows earlier.
Global Cues And Domestic Stability Support Recovery
Himanshu Srivastava, Principal Manager–Research at Morningstar Investment Research India, as quoted by PTI, said the latest inflows were largely driven by easing global macro pressures. Softer US inflation data improved expectations around the interest rate cycle, helping stabilise bond yields and the US dollar. This, in turn, enhanced investor appetite for emerging markets such as India.
On the domestic front, stable inflation, resilient macro indicators, and corporate earnings largely in line with expectations strengthened confidence in India’s economic trajectory, he noted.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, also attributed the renewed interest to the US-India trade pact, the growth-oriented Union Budget 2026, easing global trade uncertainties, and steady domestic interest rates.
Volatility Persists Despite Net Buying Days
FPIs were net buyers in seven out of eleven trading sessions in February up to the 13th, turning sellers on four occasions. However, cumulative data indicates a net equity outflow of ₹1,374 crore so far this month.
The divergence was largely due to a sharp sell-off of Rs 7,395 crore on February 13, when the Nifty dropped 336 points. The period also witnessed substantial selling in IT stocks amid the so-called “Anthropic shock.” VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said as quoted by PTI, foreign investors likely reduced exposure to IT stocks aggressively in the cash market, as the IT index fell 8.2 percent in the week ended February 13.
(With PTI Inputs)
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February 15, 2026, 16:54 IST
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New Delhi: Gold continues to remain the most trusted investment option among young Indians, even as access to financial products like mutual funds, stocks, and cryptocurrencies expands, according to a recent consumer survey.
The Smytten PulseAI survey, conducted among 5,000 consumers aged 18–39, found that 62 percent of respondents chose gold as their preferred investment, highlighting the metal’s enduring appeal among Gen Z and Millennials.
When asked how they would invest Rs 25,000, about 61.9 percent said they would choose gold, far ahead of mutual funds (16.6 percent), fixed deposits (13 percent), stocks (6.6 percent), and crypto (1.9 percent), the survey showed.
The findings also indicate that gold buying is becoming more personal and investment-driven rather than tradition-led. Around 66.7 percent of respondents said their gold purchases were primarily their own decision, reflecting a shift in mindset among younger investors.
Another notable trend is the move toward smaller and more frequent purchases. Nearly 62 percent of recent gold purchases were below 5 grams, suggesting that younger buyers are entering the market gradually instead of making large, occasional purchases.
Gold’s appeal becomes even stronger during uncertain economic conditions. The survey found that 65.7 percent of respondents consider gold the safest investment option compared with bank savings, mutual funds, or equities.
For many young earners, gold is no longer bought only for weddings or family occasions. Nearly 24 percent said their first gold purchase was linked to receiving their first salary, while 23.9 percent bought gold as an investment decision, signalling changing motivations behind gold ownership.
Overall, the survey highlights that while investment behaviour among young Indians is evolving, gold continues to play a central role as a trusted store of value and financial safety net.
Business
PPF account rules: Why you can open only one PPF account and what it means for your tax savings
New Delhi: The Public Provident Fund (PPF) is one of India’s most popular long-term, government-backed savings schemes. But many investors often wonder whether they can open multiple PPF accounts to increase their tax-saving investments. The government’s rules are clear — an individual can hold only one PPF account in their own name.
Opening additional PPF accounts in different banks or post offices is not permitted under the PPF Scheme. If more than one account is discovered in the same person’s name, the extra account will be treated as irregular and may have to be closed, with interest on the additional account typically not paid.
However, the rules allow parents or guardians to open a separate PPF account for a minor child. Even in such cases, the total annual contribution across the individual’s own account and the minor’s account cannot exceed Rs 1.5 lakh in a financial year, which is the maximum investment limit under Section 80C.
The PPF scheme remains a long-term savings instrument with a 15-year maturity period, offering tax-free interest and government-guaranteed returns. Investors can deposit a minimum of Rs 500 and up to Rs 1.5 lakh annually, making it a widely used option for retirement and tax planning.
In short, while you cannot open more than one PPF account in your own name, you can still invest in separate accounts for eligible family members such as minor children, within the overall contribution limits set by the government.
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