Pakistan poverty rate surges to 29% as 70 million fall into extreme poverty, official survey shows

Pakistan poverty hits 11-year high

Pakistan’s poverty rate has climbed to its highest level in more than a decade, with nearly one in three citizens now living below the poverty line, according to an official survey released by Planning Minister Ahsan Iqbal.

The report puts the national poverty rate at 29 per cent — the highest in 11 years — while income inequality has reached a 27-year peak. It estimates that almost 70 million Pakistanis are living in extreme poverty, defined as surviving on less than Rs 8,484 a month to cover basic needs.

According to a News18 report, p reliminary findings for the fiscal year 2024–25 show the poverty ratio has surged from 21.9 per cent in 2019 to 28.9 per cent, marking the sharpest deterioration since 2014.

Poverty reverses after years of decline

The data shows that poverty had steadily declined between 2014 and 2019, offering hope of gradual economic recovery. However, that progress has unravelled in recent years amid mounting economic pressures.

The situation has been compounded by a 21-year-high unemployment rate of 7.1 per cent, deepening financial strain on households already grappling with rising prices.

Rural communities hit hardest

The divide between rural and urban Pakistan has widened markedly. Rural poverty rose from 28.2 per cent to 36.2 per cent, while urban poverty increased from 11 per cent to 17.4 per cent.

The sharper spike in rural areas underscores the disproportionate impact of inflation, agricultural distress and slower economic activity outside major cities.

Provinces see sharp deterioration

The provincial breakdown paints a troubling picture across the country.

In Punjab, poverty increased from 16.5 per cent to 23.3 per cent. Sindh recorded a rise from 24.5 per cent to 32.6 per cent. In Khyber-Pakhtunkhwa, the figure climbed from 28.7 per cent to 35.3 per cent, while Balochistan — already the poorest province — saw poverty rise from 42 per cent to 47 per cent.

The report noted that ongoing security challenges in Khyber-Pakhtunkhwa and Balochistan have disrupted livelihoods and heightened household vulnerability, making recovery more difficult.

Incomes fall behind inflation

Over the past seven years, real monthly household income has fallen by 12 per cent to Rs 31,127. Real household expenses declined by 5.4 per cent, suggesting that inflation has outpaced income growth.

“The nominal rise in income was outpaced by inflation, causing real incomes to fall,” the survey stated.

Ahsan Iqbal acknowledged that stabilisation measures implemented under the International Monetary Fund programme — including subsidy withdrawals and currency devaluation — had contributed to economic hardship. Natural disasters and sluggish growth were also cited as key factors.

However, he argued that cash transfers through the Benazir Income Support Programme cannot serve as a permanent fix. Instead, he stressed the need for sustainable economic growth and job creation to reverse the trend.

Iqbal ruled out an early exit from the IMF programme but expressed hope that sustained recovery in incomes would, over time, help bring poverty levels down.