Pakistan faces a surge in poverty levels

Ali Nawaz Rahimoo
7 Min Read

Summary

  • According to the Economic Survey 2025–26, Pakistan’s national poverty rate has increased from 21.9% in 2018–19 to 28.9% in 2024–25.
  • Poverty in rural Pakistan has risen from 28.2% to 36.2%, while urban poverty has increased from 11% to 17.4%.
  • Inequality has increased in both urban and rural areas, suggesting that economic pressures are not being shared equally across society.
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In rural Pakistan, poverty is no longer just a statistic it is a lived reality that shapes every hour of the day. For many families, survival depends on uncertain wages, fragile employment, and rising costs that seem to move faster than income. Imagine a household of five trying to survive on just 15,000 rupees a month. Once rent, food, electricity, school supplies, and basic medical expenses are paid, nothing is left behind. The question that returns each morning is simple yet painful: what will we eat today?

This is not an isolated situation but a reflection of thousands of rural households across the country. In villages, especially in Sindh, southern Punjab, and parts of Khyber Pakhtunkhwa and Balochistan, daily wage earners and agricultural laborers live under constant financial pressure. Their work is seasonal, their income irregular, and their future uncertain.

Government welfare programs are announced with promises of relief, but access remains uneven. Many of the poorest families never benefit from subsidies meant for them. Even initiatives such as the Hari Card, designed to support landless agricultural workers with fertilizer and essential inputs, often fail to reach those who are most vulnerable. The system tends to favor those who already have documentation, land records, or formal recognition leaving behind those who exist on the margins.

The reality for many Hari families is particularly harsh. They do not own land, nor do they have permanent homes. Instead, they live temporarily on the land of landlords, working as sharecroppers or laborers. After one or two seasons, they may be forced to migrate again in search of work and shelter. This constant movement prevents them from building stability, accessing services, or securing long-term support. Poverty, for them, is not just a lack of income—it is a lack of belonging.

At the same time, rising fuel prices have pushed up transportation and food costs nationwide. Market inflation has a direct impact on rural households, who already spend most of their income on basic necessities. When prices rise, there is no cushion to absorb the shock. Families simply reduce meals, withdraw children from school, or borrow money that pushes them deeper into debt.

The impact becomes even more severe during natural disasters. Heavy monsoon rains and floods repeatedly devastate vulnerable communities, destroying crops, homes, and livestock. For families already living on the edge, such events are not temporary setbacks but long-term tragedies. A single flood can erase years of effort and push households into deeper poverty.

Recent data highlights the scale of this worsening crisis. According to the Economic Survey 2025–26, Pakistan’s national poverty rate has increased from 21.9% in 2018–19 to 28.9% in 2024–25. This marks a significant reversal after years of gradual progress, during which poverty had fallen from over 50% in 2005 – 06 to nearly 22% by 2018–19. The latest increase suggests that recent economic shocks have severely disrupted household welfare across the country.

The survey estimates that nearly 27 million additional people have fallen into poverty over the past six years, bringing the total number of people living below the poverty line to around 70 million. This means that a large portion of the population is now struggling to meet even basic needs.

Rural areas have been hit hardest. Poverty in rural Pakistan has risen from 28.2% to 36.2%, while urban poverty has increased from 11% to 17.4%. This widening gap shows that rural communities, already disadvantaged in terms of infrastructure and services, are bearing the greatest burden of economic stress.

At the provincial level, the increase is visible across all regions. Poverty in Punjab has risen from 16.5% to 23.3%, in Sindh from 24.5% to 32.6%, in Khyber Pakhtunkhwa from 28.7% to 35.3%, and in Balochistan from 41.8% to 47%. Balochistan remains the poorest province, but no region has been spared from the broader economic decline.

Several factors have contributed to this situation. Record inflation has reduced purchasing power, currency depreciation has increased import costs, and economic stabilization policies have slowed growth in some sectors. In addition, climate-related disasters such as devastating floods have repeatedly disrupted agricultural livelihoods. Together, these pressures have created a difficult environment for low-income households.

The Economic Survey also highlights rising inequality. The national Gini coefficient has increased from 28.4 in 2018–19 to 32.7 in 2024–25, indicating a widening gap between rich and poor. Inequality has increased in both urban and rural areas, suggesting that economic pressures are not being shared equally across society. Some households have managed to adapt, while others have fallen further behind.

Despite these challenges, there are areas of progress. School attendance has improved, literacy rates have increased, and immunization coverage has expanded. Infant mortality has also declined. These gains demonstrate that investment in social sectors can still produce positive outcomes even in difficult economic conditions. However, such improvements must eventually translate into stronger incomes and better living standards for families.

The government has increased allocations for social protection programs, including an expansion of cash transfer schemes aimed at supporting vulnerable households. While such measures provide short-term relief, they cannot replace long-term solutions. Sustainable poverty reduction requires job creation, access to quality education, affordable healthcare, and stable housing opportunities.

Ultimately, the rise in poverty should be seen as a critical measure of national economic health. It reflects not only financial indicators but also the lived reality of millions of citizens. Stabilization policies may help control macroeconomic instability, but their success will be judged by whether they improve everyday life for ordinary Pakistanis.

For now, in villages across the country, families continue to struggle with rising costs, uncertain work, and fragile futures. Poverty is not just increasing it is deepening, shaping lives in ways that are both visible and silent. Without inclusive and sustained policy action, the gap between economic numbers and human reality will continue to grow.

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