Pakistan’s poverty numbers have worsened significantly, with around 29 per cent of the population now living below the poverty line, the highest level in 11 years, as per an official survey released by Planning Minister Ahsan Iqbal.
The latest data effectively ends a 13-year period during which poverty had steadily declined. The latest fiscal data for 2024-25 shows the trend has reversed, pushing millions back into economic vulnerability.
Around 70 million people are now living in extreme poverty, the report cited by The Express Tribune said. The poverty line has been set at Rs 8,484 per month, the minimum needed to cover basic needs.
Rise since 2019
In 2019, poverty stood at 21.9 per cent. Since then, it has increased by 32 per cent. During the first year of Prime Minister Shehbaz Sharif’s current tenure, the rate reached 28.9 per cent.
At present levels, Pakistan is back to where it was in 2014, when poverty was recorded at 29.5 per cent.
Income inequality has also widened. The survey records it at 32.7, the highest in 27 years, comparable to 1998 levels.
Unemployment stands at 7.1 per cent, the highest in 21 years. Fewer jobs and higher prices have added to household pressures.
IMF measures cited
Iqbal said stabilisation steps under the International Monetary Fund (IMF) programme contributed to the rise.
He referred to subsidy withdrawals, currency devaluations, and high inflation as factors that increased living costs. Natural disasters and slow growth further pushed people into poverty.
Rural impact sharper
Rural poverty rose from 28.2 per cent to 36.2 per cent. In urban areas, it increased from 11 per cent to 17.4 per cent.
In Punjab, the rate went up from 16.5 per cent to 23.3 per cent over seven years. Sindh saw an increase from 24.5 per cent to 32.6 per cent. Khyber Pakhtunkhwa recorded a rise from 28.7 per cent to 35.3 per cent.
Balochistan remains the most affected province. Poverty there rose from 42 per cent to 47 per cent, with nearly half the population now below the poverty line.
Average monthly household income fell from Rs 35,454 in 2019 to Rs 31,127 in the latest fiscal year, a 12 per cent decline in real terms.
Household spending dropped by more than 5 per cent. While nominal incomes increased, inflation reduced purchasing power.