ISLAMABAD, June 14: Pakistan’s worsening economic crisis has pushed millions of citizens into poverty, exposing the severe social consequences of years of economic instability, inflation, and policy failures.
According to the Economic Survey 2025-26, the country’s poverty rate has climbed sharply over the past six years, leaving nearly 70 million Pakistanis living below the poverty line, according to a report by Dawn.
The national poverty rate increased from 21.9 percent in 2018-19 to 28.9 percent in 2024-25.
The increase translates into nearly 27 million additional people falling into poverty during the period, highlighting worsening living conditions across the country.
The survey revealed that rural communities have been hit particularly hard.
Poverty in rural areas rose from 28.2 percent to 36.2 percent, while urban poverty climbed from 11 percent to 17.4 percent.
Provincial data showed that poverty has increased across all major regions.
Balochistan remains the poorest province, with 47 percent of its population living in poverty, followed by Khyber Pakhtunkhwa at 35.3 percent, Sindh at 32.6 percent, and Punjab at 23.3 percent.
Each province recorded a significant increase compared with figures from 2018-19, highlighting the nationwide nature of the crisis.
The Economic Survey attributed the surge in poverty to a combination of economic shocks, including soaring inflation, depreciation of the Pakistani rupee, austerity measures linked to International Monetary Fund programs, devastating floods, and disruptions caused by conflicts in the Middle East.
These factors have eroded purchasing power, worsened food insecurity, and reduced the financial resilience of families dependent on remittances, according to the report.
The survey also pointed to a sharp increase in income inequality.
Pakistan’s Gini coefficient rose from 28.4 in 2018-19 to 32.7 in 2024-25, indicating a widening gap between the rich and the poor.
Urban and rural inequality both increased substantially, while Sindh recorded the highest level of inequality among the provinces, according to Dawn.
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