Pakistan poverty rises to 28.9% despite recovery

Pakistan’s poverty rate has increased to 28.9% despite signs of economic recovery. The latest Economic Survey highlights a growing gap between

Pakistan’s poverty rate has increased to 28.9% despite signs of economic recovery. The latest Economic Survey highlights a growing gap between economic indicators and living standards.

Poverty had previously declined over the long term. It fell from 50.4% in 2005-06 to 21.9% in 2018-19. However, it has now risen again to 28.9% in 2024-25.

The report shows a clear rural-urban divide. Rural poverty stands at 36.2%. This is more than double the urban poverty rate of 17.4%.

Income inequality has also widened. The Gini coefficient increased from 28.4 to 32.7. This reflects that economic gains are not being evenly distributed.

The rise in poverty comes despite overall economic stabilisation. The country has reported improved GDP growth, lower fiscal deficit, and better external indicators. However, these gains have not fully reached lower-income groups.

Households continue to face pressure from past economic shocks. Inflation, currency depreciation, and climate-related disasters have affected incomes. Food, energy, and transport costs remain high for many families.

Although inflation has eased compared to previous peaks, its earlier impact continues to affect purchasing power. Many households are still struggling with daily expenses.

The government says social protection spending has increased. Total pro-poor expenditure reached Rs4.66 trillion during July-March of FY26.

The Benazir Income Support Programme remains the largest welfare initiative. It received Rs722.49 billion in allocation, with significant funds disbursed during the year.

Despite rising poverty, some social indicators have improved. Education access, healthcare, sanitation, internet use, and immunisation rates have shown progress.

Experts say economic growth alone is not enough to reduce poverty. They stress the need for job creation, investment, and productivity growth to ensure inclusive development.