New Delhi, February 22: Poverty in Pakistan has surged to its highest level in 11 years. According to an official survey released by Planning Minister Ahsan Iqbal, approximately 29% of the population is living below the poverty line.
Reports from The Express Tribune indicate that nearly 70 million people are enduring extreme poverty. This figure is based on a monthly poverty line of 8,484 rupees, deemed the minimum amount necessary to meet basic needs.
Preliminary findings for the fiscal year 2024-25 reveal a 32% increase in poverty since the last survey conducted in 2018-19. The poverty rate was 21.9% in 2019, but it rose to 28.9% during the first year of Prime Minister Shehbaz Sharif’s current administration.
According to the report, this is the highest level since 2014 when poverty was recorded at 29.5%. The situation of income inequality has also deteriorated rapidly, with inequality rising to 32.7%, the highest level in 27 years. The last time inequality was at this level was in 1998. Pakistan is also facing its highest unemployment rate in 21 years, at 7.1%.
The Planning Minister acknowledged that measures for economic stability under the International Monetary Fund (IMF) program have contributed to the rise in poverty. He pointed out that the withdrawal of subsidies, depreciation of the exchange rate, and rising inflation have increased living costs. Natural disasters and sluggish economic growth have also pushed more people into poverty.
The report indicates that for the first time in 13 years, the trend of decreasing poverty has reversed. Rural areas have been hit hardest, with poverty rising from 28.2% to 36.2%. Urban poverty has also increased from 11% to 17.4%.
Conditions have worsened across all provinces. In Punjab, poverty has risen from 16.5% to 23.3% over seven years. In Sindh, it has increased from 24.5% to 32.6%, while Khyber Pakhtunkhwa has seen a rise from 28.7% to 35.3%.
Balochistan remains the most affected province, with nearly half of its population living in poverty, and the rate has increased from 42% to 47%.
The report also notes that the average income decreased from 35,454 rupees in 2019 to 31,127 rupees, marking a 12% decline. During the same period, household spending fell by more than 5%. Although income saw a nominal increase, high inflation has outpaced earnings, reducing purchasing power.
— Arpit Yajgnik/DSC
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