The new formula, unveiled late Thursday by Planning and Development Minister Ahsan Iqbal, takes into account the cost of basic needs like health and education.
The old method was based only on food intake and energy requirements.
Under the new methodology, the poverty ratio was 29.5 per cent in 2013-14. Under the old definition, the poverty ration was 9.3 per cent, Iqbal said.
Another 20 million people were classified as “vulnerable” and were at risk of falling below the new poverty line, he said.
Poverty has declined in Pakistan since 2001, no matter which formula is used to measure it, Finance Minister Ishaq Dar said.
“Under the old method, poverty decreased from 34.6 to 9.3 per cent during the 2001-2 to 2013-14 period, while it dropped from 64.3 to 29.5 per cent under the new formula in the same period,” he said.
Source; GNA
