Pakistan is grappling with its worst poverty crisis in over a decade. Official data reveals that nearly 29 percent of the population now lives below the poverty line, marking the highest level since 2014.
Planning Minister Ahsan Iqbal released the shocking findings from a comprehensive household survey. Around 70 million people are trapped in extreme poverty, surviving on less than 8,484 rupees per month—the bare minimum for basic needs.
This surge represents a 32 percent increase in poverty since the last survey in 2018-19. Back then, the rate stood at 21.9 percent. Under Prime Minister Shehbaz Sharif’s government, it has skyrocketed to 28.9 percent in just one year.
Income inequality has also worsened dramatically, reaching 32.7—the highest in 27 years, last seen around 1998. Unemployment is at a 21-year peak of 7.1 percent, compounding the economic misery.
The minister candidly admitted that IMF-mandated reforms played a role. Withdrawing subsidies, a plunging exchange rate, and soaring inflation have driven up living costs. Natural disasters and sluggish growth have pushed millions deeper into despair.
Rural areas have been hit hardest, with poverty jumping from 28.2 percent to 36.2 percent. Urban poverty rose from 11 percent to 17.4 percent. Every province tells a grim story: Punjab’s rate climbed from 16.5 percent to 23.3 percent; Sindh from 24.5 percent to 32.6 percent; Khyber Pakhtunkhwa from 28.7 percent to 35.3 percent.
Balochistan remains the epicenter of suffering, where nearly half the population—47 percent—is now impoverished, up from 42 percent.
Household incomes plummeted 12 percent last fiscal year, from 35,454 rupees to 31,127 rupees. Domestic spending dropped over 5 percent as inflation eroded purchasing power despite nominal income gains.
This reversal ends a 13-year trend of declining poverty. Pakistan’s economy faces a pivotal moment, demanding urgent policy shifts to reverse the tide.