Islamabad(The COW News Digital)Pakistan’s poverty rate has surged to 29 percent, the highest level in 11 years, according to a government survey released Friday by Federal Minister for Planning and Development, Ahsan Iqbal. The report also highlights a sharp increase in income inequality, reaching its highest level in 27 years.
The survey indicates that nearly 70 million Pakistanis are living in extreme poverty, with incomes of just 8,484 Pakistani rupees per month. Between 2018-19 and 2024-25, poverty in the country increased by 32 percent. In 2019, the poverty rate stood at 21.9 percent, rising to 28.9 percent in 2024-25, marking the steepest rise since 2014, when poverty was last recorded at 29.5 percent.
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Income inequality has also reached alarming levels, with the Gini coefficient climbing to 32.7 percent—the highest since 1998, when it stood at 31.1 percent. The report further notes that Pakistan is experiencing the highest unemployment rate in 21 years, currently at 7.1 percent.
Minister Ahsan Iqbal attributed the rise in poverty to the International Monetary Fund (IMF) program, which required the government to withdraw subsidies in certain sectors. Additionally, the depreciation of the Pakistani rupee against the U.S. dollar has exacerbated economic pressures on low-income households.
The report also reveals a steep decline in real incomes and household expenditures over the past seven years, reflecting the growing economic hardship faced by millions of Pakistanis. Analysts say that policy missteps and governance challenges have contributed to the widening gap between the rich and the poor.
“This survey highlights the urgent need for inclusive economic policies that address both poverty and inequality,” said Iqbal during a press conference. He emphasized that the government is examining measures to stabilize incomes, support vulnerable populations, and mitigate the impact of inflation and currency devaluation.
The findings underscore the growing economic disparity in Pakistan, signaling that millions of citizens face daily struggles to meet basic needs. Experts warn that without decisive policy interventions, the country risks further social and economic instability.
The government report serves as a stark reminder of the challenges Pakistan faces in achieving sustainable development and reducing the wealth gap amid rising poverty levels.
