New Delhi, March 4: A recent report from Pakistan’s Planning Commission has revealed a significant rise in both poverty and inequality over the past six years. This alarming finding is based on data from the Household Integrated Economic Survey (HIES) conducted by the Pakistan Bureau of Statistics for the years 2018-19 and 2024-25, which compared household income levels and their distribution.
According to the report, the national poverty rate rose from 21.9% in 2018-19 to 28.9% in 2024-25. A report published by the Business Recorder from Karachi indicates that poverty in rural areas increased from 28.2% to 36.3%, while urban poverty rose from 11% to 17.4%.
The report attributes this surge in poverty to rising unemployment, widening income inequality, and a decline in real household incomes. The Planning Commission’s analysis also revealed that the unemployment rate increased from 5.7% in 2020-21 to 7.1% in 2024-25. During the same period, the average real income of households fell by 27.5%, adversely affecting purchasing power and living standards.
The report emphasizes that instability in economic policies and irresponsible decision-making have exacerbated the situation. It also highlights other major factors contributing to the increase in poverty and inequality, including the COVID-19 pandemic in 2019-20 and the devastating floods in 2022-23, which severely impacted the economy.
Additionally, measures aimed at stabilizing the economy under International Monetary Fund programs, such as cuts in subsidies, increases in indirect taxes, and significant reductions in development spending, have placed an extra burden on the general populace.
Presenting the report, the Planning Minister stressed the need to adopt an export-oriented growth model, focus on relatively underdeveloped districts, and establish better financial balance between federal and provincial governments. He advocated for strengthening social safety nets, including cash transfer programs, targeted poverty alleviation initiatives, and support for small and medium enterprises (SMEs).
Experts believe this report is not merely a collection of statistics but a serious indication of the widespread decline in living standards in Pakistan. It also suggests various components for a comprehensive and balanced development strategy to reduce inequality and eradicate poverty. The Business Recorder article expressed hope that the current government will implement these recommendations to take concrete steps toward economic stability and social justice.
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