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Pakistan's Widening Provincial Poverty Gap Deepens Regional Inequality Crisis

Pakistan's national poverty rate has increased significantly to 28.9%, leaving roughly 70 million people below the poverty line. Stark economic disparities exist between provinces, with Balochistan suffering a 47% poverty rate while Punjab remains more developed at 23.3%. The inequality is exacerbated by a federal revenue distribution formula that favors Punjab, the most populous province. This "resource curse" and unequal development limit access to education, healthcare, and jobs in poorer regions, with broader social and political consequences.

Key Points: Pakistan's Deepening Provincial Poverty & Economic Inequality

  • National poverty rises to 28.9%
  • Balochistan poorest at 47% poverty rate
  • Punjab dominates with 23.3% rate & most revenue
  • Rural poverty 36.2% vs urban 17.4%
2 min read

Regional inequality deepens poverty in Pakistan as provinces show wide economic gaps

Poverty rises to 28.9% in Pakistan with stark gaps between provinces. Balochistan at 47% poverty vs. Punjab at 23.3%, fueling regional inequality.

"population-based formula has resulted in Punjab receiving more than half of the federal divisible revenue pool - Experts"

New Delhi, March 7

Pakistan is facing widening economic disparities among its provinces, a trend that analysts said is deepening poverty and creating unequal access to basic services such as education, healthcare and jobs, a report has said.

Recent data showed that poverty in Pakistan has risen significantly in recent years. The national poverty rate increased to about 28.9 per cent in the fiscal year 2024-25, compared with 21.9 per cent in 2019.

This means roughly 70 million people are living below the monthly poverty threshold of Rs 8,484, according to European Times report.

The divide between rural and urban areas is also growing. Rural poverty stands at around 36.2 per cent, more than double the 17.4 per cent recorded in urban areas.

Among the provinces, Balochistan remains the poorest region. Its poverty rate rose to 47 per cent in 2024-25, up from 42 per cent earlier.

In Khyber Pakhtunkhwa, poverty increased to 35.3 per cent, while Sindh recorded a poverty rate of 32.6 per cent.

In contrast, Punjab, the country's most developed province, had a relatively lower poverty rate of 23.3 per cent, although it has also risen in recent years, as per the report.

Punjab continues to dominate economically with better infrastructure, stronger investment flows and higher levels of human development.

The province also receives the largest share of federal revenue under the National Finance Commission Award, which distributes funds among provinces largely based on population.

Experts said this population-based formula has resulted in Punjab receiving more than half of the federal divisible revenue pool, while poorer provinces struggle to finance development projects and social services.

In Balochistan, the situation reflects what economists describe as a "resource curse". The province is rich in natural resources such as gas, copper and gold, but local communities receive limited benefits from their extraction.

Poverty in the province remains around 40 to 45 per cent, while overall literacy is about 40 per cent and female literacy is just 25 per cent.

Analysts said the unequal distribution of development has broader social and political consequences.

Poor infrastructure and limited public services in less developed regions make it harder for people to access schools, hospitals and employment opportunities.

- IANS

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Reader Comments

S
Sarah B
The female literacy rate of just 25% in Balochistan is heartbreaking. When half your population is left behind, how can any region develop? This isn't just an economic issue, it's a profound human development crisis.
A
Arjun K
While the situation is indeed troubling for our neighbours, we in India must also introspect. We have our own regional disparities between states. Let's hope Pakistan finds a solution, but let's also work on our internal gaps. Jai Hind.
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Priyanka N
The rural-urban divide is massive! 36% vs 17% poverty. This is what happens when development is concentrated in cities. Farmers and villagers are always left behind. Same story in many parts of the world, sadly.
M
Michael C
A population-based formula for fund distribution seems inherently unfair. It perpetuates inequality. Provinces with greater needs, like Balochistan, should receive more targeted assistance, not less. Basic economics.
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Kavya N
With nearly half the population in Balochistan living in poverty, the social and political consequences mentioned are inevitable. Stability requires inclusive growth. Hope they can course-correct before it's too late. 🙏

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