- Pakistan’s poverty rate rose by 7%, adding 13 million people — urgent reforms are needed to reverse the trend
Interview with Mr. Khalid Tawab — former Senior Vice President, FPCCI
PAGE: Tell me about yourself, please:
Khalid Tawab: I am Chairman of Tawab Group of Companies, a renowned name in the manufacturing of paper, board, and steel. I have served as the Senior Vice President and Vice President of FPCCI (Federation of Pakistan Chambers of Commerce and Industry) and the Karachi Chamber. I have been the honorary Consul General of Mozambique since 1989.
In recognition of my outstanding public services, I was awarded the Sitara-e-Imtiaz by the President of Pakistan in 2009. My company has received the FPCCI Exports Awards twice and the International Asia Award once for the highest exports. I am also a philanthropist and a trustee of the Aiwan-e-Tijarat-o-Sanat hospital. I have had the privilege of serving as a Minister in the caretaker government. Presently, I am chairman of Audit and Finance Committee of FPCCI — the most important committee of FPCCI
PAGE: The findings of a World Bank report state that the poverty rate in Pakistan stood at 25.3 per cent in 2024, showing an increase of seven percentage points compared to 2023, with about 13 million additional people falling into poverty. What is your standpoint?
Khalid Tawab: The World Bank’s report on Pakistan’s rising poverty rate is alarming. The 7% increase in poverty, affecting 13 million more people, demands immediate attention from policymakers. We need to address the root causes, such as inflation, unemployment, and lack of economic opportunities, to mitigate this trend. We also need to focus on providing vocational training to our youngsters, enabling them to play a productive role in society and become self-sufficient, rather than a burden on their families.
PAGE: The World Bank says limited growth in real wages and employment will keep the poverty rate near 40 per cent through fiscal year 2026. At the same time, monetary poverty will remain high. How would you comment on it?
Khalid Tawab: The World Bank’s projection of a stagnant poverty rate near 40% until FY2026 is concerning. Limited growth in real wages and employment underscores the need for sustainable economic policies, investments in human capital, and social safety nets to protect vulnerable populations. Education and vocational training are crucial in enabling us to meet poverty challenges. We must give considerable consideration to education across Pakistan and introduce vocational education in government educational institutions.
PAGE: Several publicly listed companies claim giving donations for various social causes. What is your perspective in this regard?
Khalid Tawab: While corporate donations for social causes are commendable, transparency and accountability are essential. Companies should ensure that their CSR initiatives align with national priorities, are impactful, and benefit marginalized communities. To further amplify the impact, CSR should be made mandatory in all corporate sectors, with a focus on supporting vendors, particularly in the education and health sectors.
PAGE: There is a growing understanding that CSR efforts enhance brand image, drive sales revenues, and boost profitability. What is your take on this?
Khalid Tawab: I agree that CSR efforts can enhance brand image, drive sales, and boost profitability. However, genuine commitment to social responsibility, rather than mere window-dressing, is crucial. Businesses should integrate CSR into their core operations, fostering long-term value creation for both shareholders and society.