Poverty in Pakistan increased by 7 per cent over the last six years, with about 27 million joining the unenviable league, pushing the net tally of poor in the country to 70 million, according to the national economic survey.
The Pakistan Economic Survey 2025-26, a key national document, was launched on Thursday as part of an annual exercise to share economic indicators before unveiling of the federal budget.
The survey shows that poverty was at 21.9 per cent in 2018-19 and increased to 28.9 per cent in 2024-25.
Rural poverty rose from 28.2 to 36.2 per cent, while urban poverty surged from 11 to 17.4 per cent, according to the survey.
The province-wise data shows an increase in poverty across all regions.
In the Punjab province, it rose from 16.5 to 23.3 per cent; in Sindh, from 24.5 to 32.6 per cent; Khyber Pakhtunkhwa saw a rise from 28.7 to 35.3 per cent; and Balochistan from 41.8 to 47 per cent.
Balochistan remained on top, recording the highest poverty incidence, while Punjab had the lowest among the four provinces.
The survey noted that the increase in poverty is attributed to prolonged economic shocks, including record-high inflation, currency depreciation, International Monetary Fund stabilisation measures, catastrophic climate events like floods, and the West Asia conflict.
The data showed a rise in inequality in the country as the national Gini coefficient — which measures income inequality — rose from 28.4 in 2018-19 to 32.7 in 2024-25. This suggests that the rise in poverty was accompanied by wider disparities in income distribution.
According to the survey, Pakistan’s national poverty estimates are based on the cost of basic needs approach, which has remained the standard framework for estimating consumption-based poverty.
The Pakistan Economic Survey is believed to be an authentic source of data provided by the government each year before the budget.
