Islamabad, April 7: A recent report reveals that poverty in Pakistan has transitioned from a temporary issue to a structural crisis. Ordinary citizens are paying a heavy price for the government’s policy mistakes, which have cost billions of dollars.
According to data from Pakistan’s Ministry of Planning, Development, and Special Initiatives, the number of people living below the poverty line rose from approximately 50 million in 2018 to nearly 70 million by 2024.
The report highlights that the average electricity tariff, which was around 11 rupees per unit in 2018, has surged to nearly 50 rupees per unit today. This increase is not merely a regular rise but is described as a “structural shock.” The soaring electricity costs have led to higher food prices, reduced real income, impacted industries, and forced many small businesses to shut down.
The report indicates that the increased electricity bills have severely affected people’s lives. Families are now struggling to afford basic necessities like food, education, and healthcare.
The situation has deteriorated to the point where people are opting for lentils instead of chicken, diluting milk with water, and significantly reducing their fruit intake. Expenses for school fees and medical treatment are being postponed, and many children are forced to leave school to work.
The report attributes this dire situation to the government’s energy policies. Expensive electricity projects and high capacity payments have driven up electricity prices, increasing production costs and making everything more expensive.
Citing examples from a power project in 1995 and the China-Pakistan coal power project from 2017, the report illustrates how the burden of these projects’ costs and capacity payments has ultimately fallen on the general public.
Today, the electricity tariffs that people are paying reflect not just the cost of electricity but also a compensation for the government’s past policy errors. As a result, Pakistan’s middle class is rapidly sliding into poverty.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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