Pakistan’s poverty rate rises to 28.9 pc amid economic pressures

New Delhi, June 14 (IANS) Pakistan’s poverty rate has risen sharply over the past six years, reversing more than a decade of progress in poverty reduction, a report has said citing the data from economic survey 2025-26.

The survey estimates that the proportion of people living below the poverty line increased from 21.9 per cent in 2018-19 to 28.9 per cent in 2024-25, according to Dawn report.

The increase comes after years of steady improvement, during which Pakistan had reduced its poverty rate from 50.4 per cent in 2005-06 to 21.9 per cent in 2018-19.

However, a combination of record-high inflation, currency depreciation, devastating floods and economic stabilisation measures has placed significant pressure on household incomes and living standards.

The survey shows that poverty has risen across both rural and urban areas. Rural poverty climbed from 28.2 per cent in 2018-19 to 36.2 per cent in 2024-25, while urban poverty increased from 11 per cent to 17.4 per cent during the same period.

Regional disparities have also widened. Nearly half of the population in Balochistan is now living below the poverty line, making it the worst-affected province.

Poverty levels have also increased significantly in Sindh and Khyber Pakhtunkhwa, while Punjab has recorded a notable rise, indicating that the effects of recent economic shocks have been felt across the country.

The Economic Survey noted that the burden of rising prices and slowing income growth has not been distributed evenly.

While some households have managed to absorb the economic strain, many others have struggled, resulting in a wider gap between those who are financially secure and those who continue to fall behind.

The growing disparity, the report warned, could limit social mobility and weaken the connection between economic growth and improvements in living standards.

Despite the worsening poverty figures, the survey highlighted progress in several social indicators.

School attendance and literacy rates have improved, immunisation coverage has expanded and infant mortality rates have declined.

These developments suggest that investments in education and healthcare continue to deliver positive outcomes even during periods of economic stress.

To support vulnerable households, the government has increased the allocation for the Benazir Income Support Programme (BISP) by 17 per cent and expanded its coverage to 12 million families.

However, the survey emphasised that cash assistance alone cannot address the broader challenges of poverty and inequality, as per the report.

–IANS

pk