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Pakistan's Poverty Hits 11-Year High Despite Govt's Economic Revival Claims

Pakistan's poverty rate has surged to 29%, marking an 11-year high, while income inequality has reached levels not seen in nearly three decades. Real household incomes have fallen and unemployment is at a 21-year peak, with 70 million people now below the poverty line. The government's claimed economic stability, achieved through IMF-mandated austerity like subsidy cuts and tax hikes, is described as "emergency care, not rehabilitation." The report argues this crisis stems from decades of political avoidance and structural economic flaws, not just the current IMF program.

Key Points: Pakistan Poverty at 11-Year High, Inequality Soars

  • Poverty at 29%, an 11-year high
  • Income inequality at 3-decade peak
  • Real household incomes shrink, unemployment at 21-year high
  • 70 million people below poverty line
  • IMF stabilisation policies cited as contributing factor
2 min read

'Pakistan's poverty level jumps to 11-year high amid govt claims of economic revival'

Pakistan's poverty level reaches 29%, an 11-year high, with income inequality at a 3-decade peak despite government claims of economic stability.

"The country has stabilised, but it has not healed. - The Friday Times report"

New Delhi, Feb 23

While the Pakistan government claims that the country's economy has been revived from the brink and is now stable, the harsh reality is that poverty has climbed to an 11-year high of 29 per cent and income inequality is at levels not seen in nearly three decades, according to an article in the Pakistani media.

The article in the Lahore-based The Friday Times further pointed out that real household incomes have shrunk and unemployment is at a 21-year peak. For millions of families, "stability" feels indistinguishable from suffocation.

"This is not a contradiction. It is the central paradox of Pakistan's economic moment. The country has stabilised, but it has not healed," it stated.

The IMF programme imposed discipline where domestic politics had repeatedly failed. This resulted in a cut in subsidies, an increase in energy prices, and the monetary policy was tightened. These steps resulted in slowing the bleeding of the economy.

"But stabilisation is not the same as recovery. It is emergency care, not rehabilitation," the report remarked.

It pointed out that when subsidies vanish, and indirect taxes rise, the burden does not fall evenly. It lands hardest on those already stretched thin - lower-middle-income earners, daily wage workers, small traders. Inflation may be "contained" now, but the damage of the surge remains embedded in daily life. Food, electricity, fuel - essentials became luxuries. And wages did not keep pace.

The result is visible in the poverty numbers. Seventy million people are now officially below the poverty line. In rural areas, more than a third of the population struggles to meet basic needs. In Balochistan, nearly half. This is not cyclical discomfort; it is structural erosion, it noted.

Planning Minister Ahsan Iqbal has conceded that stabilisation policies contributed to the spike in poverty. Fiscal consolidation and currency devaluation are blunt instruments. They restore balance sheets, but they squeeze households, the article added.

Yet blaming the IMF alone misses the larger truth. Pakistan's vulnerability did not begin with this programme. It is the product of decades of avoidance. For years, successive governments, civilian and otherwise, chose expediency over reform. Instead of broadening the tax base, they leaned on the already compliant. Instead of restructuring loss-making state enterprises, they subsidised inefficiency. Instead of investing consistently in export competitiveness, they relied on remittances and short-lived consumption booms, the article lamented.

- IANS

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Reader Comments

P
Priya S
"Stabilisation is not the same as recovery." This line hits hard. We've seen similar economic pain in India during tough reforms, but the key is having a vision for the future. When subsidies are cut, there must be a safety net. 70 million below poverty is a humanitarian crisis, not just a statistic.
A
Aman W
It's a classic case of poor governance catching up. The article says it right – decades of avoiding real reform. You can't keep taxing the same salaried class and ignoring the untaxed sectors. Their elite and establishment need to share the burden for any recovery to be meaningful.
S
Sarah B
Reading about Balochistan is heartbreaking. Nearly half the population struggling for basics. Economic mismanagement has real human costs. I hope there's a way forward that prioritizes people over politics. The focus needs to shift to job creation and supporting small businesses immediately.
V
Vikram M
While the situation is dire, we in India should look at this as a cautionary tale. We must strengthen our own institutions, broaden our tax base, and keep investing in manufacturing and exports. Complacency is not an option. Economic sovereignty is built on tough, consistent decisions.
K
Karthik V
The minister conceding that stabilisation policies spiked poverty is an important admission. Harsh reforms are sometimes necessary, but the government's job is to cushion the blow for the most vulnerable. Where is the plan for rehabilitation, as the article asks? "Emergency care" can't last forever.

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