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Pakistan Poverty Hits 29%, an 11-Year High Amid Economic Crisis

Poverty in Pakistan has surged to 28.9%, its highest level in 11 years, pushing nearly 70 million people below the poverty line. The Planning Minister linked the rise to IMF-backed economic stabilisation measures, including subsidy withdrawals and high inflation. Rural areas and all provinces, especially Balochistan where nearly half are poor, have seen severe deterioration. The report also notes record-high income inequality and a 21-year peak in unemployment, reversing over a decade of poverty reduction.

Key Points: Pakistan Poverty Rate at 29%, Highest in 11 Years: Report

  • Poverty rate jumps to 28.9%
  • 70 million live in extreme poverty
  • Income inequality highest in 27 years
  • Rural and all provinces see sharp increases
3 min read

Pakistan poverty rate hits 11-year high at 29 pc: Report

Pakistan's poverty rate hits 29%, an 11-year high, with 70 million in extreme poverty. Inequality and unemployment also reach multi-decade peaks.

"economic stabilisation measures under the International Monetary Fund (IMF) programme contributed to the rise in poverty - Ahsan Iqbal"

New Delhi, Feb 22

Poverty in Pakistan has risen to its highest level in 11 years, with nearly 29 per cent of the population now living below the poverty line, according to an official survey released by Planning Minister Ahsan Iqbal.

The report cited by The Express Tribune showed that around 70 million people are living in extreme poverty, based on a monthly poverty line of Rs 8,484, which is considered the minimum amount needed to meet basic needs.

The preliminary findings for the fiscal year 2024-25 reveal that poverty has increased by 32 per cent since 2018-19, when the last survey was conducted.

In 2019, the poverty rate stood at 21.9 per cent. During the first year of Prime Minister Shehbaz Sharif's current government, the rate jumped to 28.9 per cent.

This is the highest level since 2014, when poverty was recorded at 29.5 per cent, as per the report.

The situation of income inequality has also worsened sharply. The survey shows that inequality rose to 32.7, the highest level in 27 years.

The last time inequality was close to this level was in 1998. Pakistan is also facing its highest unemployment rate in 21 years at 7.1 per cent.

The planning minister admitted that economic stabilisation measures under the International Monetary Fund (IMF) programme contributed to the rise in poverty.

He said the withdrawal of subsidies, exchange rate devaluation and high inflation increased the cost of living.

Natural disasters and slow economic growth also played a role in pushing more people into poverty.

The report highlights that the poverty reduction trend has reversed for the first time in 13 years.

Rural areas have been hit harder, with poverty rising from 28.2 per cent to 36.2 per cent. Urban poverty also increased from 11 per cent to 17.4 per cent, the report said.

Across provinces, the situation has worsened. In Punjab, poverty rose from 16.5 per cent to 23.3 per cent over seven years.

In Sindh, it increased from 24.5 per cent to 32.6 per cent. In Khyber Pakhtunkhwa, the rate climbed from 28.7 per cent to 35.3 per cent.

Balochistan remains the worst-affected province, where nearly half the population lives in poverty, with the rate rising from 42 per cent to 47 per cent, according to the report.

The report also showed that real monthly household income fell from Rs 35,454 in 2019 to Rs 31,127 in the last fiscal year, a drop of 12 per cent.

Real monthly household spending also declined by over 5 per cent during the same period. Although incomes rose in nominal terms, high inflation outpaced earnings, reducing purchasing power.

- IANS

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Reader Comments

S
Sarah B
The numbers are staggering. A 12% drop in real household income in just a few years shows how badly inflation is hurting people. The planning minister blaming IMF measures is telling – austerity often hits the poorest the hardest. A lesson for all developing economies.
V
Vikram M
Balochistan at 47% poverty is heartbreaking. The rural-urban divide is also widening sharply. It's a stark reminder that economic growth must be inclusive. In India, we must ensure our welfare schemes continue to reach the most vulnerable. 🇮🇳
R
Rohit P
The report says poverty reduction trend reversed for the first time in 13 years. That's a serious policy failure. When nearly half your population in a province is poor, it's not just an economic issue, it's a threat to stability. Hope they can turn it around.
P
Priya S
As an Indian, I read this with mixed feelings. There's no joy in a neighbor's suffering. Their people deserve better leadership and economic management. The high unemployment (7.1%) is especially worrying for the youth. Wishing peace and prosperity for all in the region.
M
Michael C
The minister admitted the IMF program contributed to the rise. It's a classic dilemma - short-term pain for long-term gain, but the "pain" is people going hungry. The inequality index hitting a 27-year high shows the system is broken for the average citizen.

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