Pakistan's poverty rate rises 29 pc after six years of economic shocks
New Delhi, July 20
Pakistan's poverty rate has risen sharply over the past six years, with nearly 29 per cent of the population now living below the poverty line, as repeated economic shocks, high inflation and weak growth eroded household incomes and consumption, a report has said.
According to an analysis by Dawn -- based on the Household Integrated Economic Survey (HIES) and the Pakistan Social and Living Standards Measurement (PSLM) -- the country's poverty rate increased to 28.9 per cent in 2024-25 from 21.8 per cent in 2018-19, an increase of seven percentage points.
Rural areas were hit harder than urban centres, with poverty increasing by about eight percentage points in rural Pakistan compared with around six percentage points in urban areas, it added.
The data -- released after a gap of nearly six years -- reflects the cumulative impact of multiple domestic and global crises, including repeated balance-of-payments pressures, the Covid-19 pandemic, elevated inflation, rising commodity prices and prolonged macroeconomic adjustment.
The report also noted that average inflation-adjusted household incomes and consumption declined over two successive survey cycles, indicating that Pakistan has experienced what analysts describe as a 'lost decade' in terms of improvements in living standards.
According to the analysis, the coexistence of positive economic growth with rising poverty suggests that the benefits of growth have largely accrued to higher-income groups, while lower-income households have suffered greater erosion in real incomes and purchasing power.
The report noted that poorer households, which largely depend on wages rather than income from financial or physical assets, were more vulnerable to inflation and repeated economic disruptions.
Meanwhile, wealthier households were better positioned to offset rising prices through ownership of assets such as real estate and financial investments.
The report underscores the challenges facing Pakistan's economy as it seeks to sustain growth while addressing rising poverty and widening inequality, amid continuing geopolitical uncertainties and external economic risks.
— IANS
Reader Comments
The gap between rich and poor is growing everywhere, but in Pakistan it's become extreme. Rural areas being hit harder is especially concerning. This is what happens when your economy relies too much on the wealthy instead of protecting the common man. Hope they find a way to stabilize things soon. 🙏
Lost decade is right. When even basic household incomes are declining despite GDP growth, you know something is fundamentally broken. The report's conclusion that benefits only went to the wealthy is a classic case of trickle-down economics failing. Pakistan needs a complete rethink of its social safety nets and economic priorities.
This hits close to home because similar trends are visible in parts of India too. Inflation, pandemic, and global shocks don't respect borders. But the intensity of Pakistan's crisis - 7% increase in poverty in just 6 years - is alarming. I hope our policymakers are watching and learning from this. 😐
The data speaks volumes: 8% increase in rural poverty vs 6% in urban areas. Wages vs assets. The rich get richer while the poor bear the brunt. Pakistan's 'lost decade' is a tragedy for millions. International community needs to step up with real support, not just loans that worsen the debt cycle.
Respectfully, while this is a neighbour's problem, it's also a human issue. 29% poverty means families struggling to eat, children dropping out of school, and communities breaking apart. As someone from India, I feel we should
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.