Inflation, IMF debt trap plunge 70 million Pakistanis into grinding poverty
Islamabad, June 14
Pakistan's worsening economic crisis has pushed millions of citizens into poverty, exposing the severe social consequences of years of economic instability, inflation, and policy failures.
According to the Economic Survey 2025-26, the country's poverty rate has climbed sharply over the past six years, leaving nearly 70 million Pakistanis living below the poverty line, as reported by Dawn.
According to Dawn, the national poverty rate increased from 21.9 per cent in 2018-19 to 28.9 per cent in 2024-25.
The rise translates into nearly 27 million additional people falling into poverty during the period, highlighting the worsening living conditions across the country.
The survey revealed that rural communities have been hit particularly hard.
Poverty in rural areas rose from 28.2 per cent to 36.2 per cent, while urban poverty climbed from 11 per cent to 17.4 per cent.
Provincial data shows that poverty has increased across all major regions.
Balochistan remains the poorest province, with 47 per cent of its population living in poverty, followed by Khyber Pakhtunkhwa at 35.3 per cent, Sindh at 32.6 per cent, and Punjab at 23.3 per cent.
Each province recorded a significant rise compared to figures from 2018-19, highlighting the nationwide nature of the crisis.
The Economic Survey attributes the surge in poverty to a combination of economic shocks, including soaring inflation, depreciation of the Pakistani rupee, austerity measures linked to International Monetary Fund programmes, devastating floods, and disruptions caused by conflicts in the Middle East.
These factors have eroded purchasing power, worsened food insecurity, and reduced the financial resilience of families dependent on remittances, as highlighted by Dawn.
The report also points to a sharp increase in income inequality.
Pakistan's Gini coefficient rose from 28.4 in 2018-19 to 32.7 in 2024-25, indicating a wider gap between rich and poor.
Urban and rural inequality both increased substantially, while Sindh recorded the highest level of inequality among the provinces, as reported by Dawn.
— ANI
Reader Comments
This is a sobering read. The IMF debt trap cycle continues—bailouts with harsh conditions that only deepen poverty. Pakistan needs to rethink its economic model, focusing on agriculture reform and export diversification. Global institutions must also stop imposing one-size-fits-all solutions.
As an Indian, I feel a mix of sadness and concern. Pakistan's instability can spill over. But more than that, we must remember our own poor are also suffering from inflation. India should learn from this—don't rely too much on IMF loans, build self-reliance. 😔
The data is clear—the rich-poor gap is widening everywhere. Pakistan's Gini coefficient jump is alarming. While India's own inequality is bad, we need to see how these IMF programs exacerbate poverty rather than solve it. A broken system for both countries.
Imagine 47% of Balochistan in poverty! That's the human cost of political mismanagement and external debt. I hope India's policymakers take note: we need strong domestic industries, not dependence on foreign loans. A lesson for all developing nations. 🙏
Respectfully, this crisis isn't just external. Pakistan's own governance failures—corruption, tax evasion, and subsidies for the elite—are key drivers. IMF loans may be a symptom, not the cause. Real reform must come from within. Tough love from an outsider.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.