Poverty in Pakistan has increased by 7% over the past six years, adding approximately 27 million people to the impoverished population, bringing the total to 70 million. The Pakistan Economic Survey 2025-26 attributes this surge to economic shocks, inflation, currency depreciation, climate events, and regional conflicts.
The substantial increase in poverty and widening inequality in Pakistan highlights significant economic challenges and social disparities, potentially impacting domestic stability and requiring substantial policy interventions.
Poverty in Pakistan has surged by 7% over the past six years, adding approximately 27 million people to the impoverished population, bringing the total to 70 million, according to the Pakistan Economic Survey 2025-26. The survey, released as part of the annual economic exercise before the federal budget, indicates that the national poverty rate climbed from 21.9% in 2018-19 to 28.9% in 2024-25.
Rural poverty saw a significant increase, rising from 28.2% to 36.2%, while urban poverty climbed from 11% to 17.4%. The data reveals a rise in poverty across all provinces, with Balochistan exhibiting the highest incidence and Punjab the lowest among the four major provinces. The survey attributes this increase to prolonged economic shocks, including record inflation, currency depreciation, International Monetary Fund stabilization measures, severe climate events like floods, and the conflict in West Asia.
Furthermore, the survey highlights a widening income inequality, with the national Gini coefficient increasing from 28.4 in 2018-19 to 32.7 in 2024-25. Pakistan's national poverty estimates are calculated using the cost of basic needs approach, a standard framework for consumption-based poverty measurement. The Pakistan Economic Survey is considered an authentic source of government-provided data.