70 Million People in Pakistan Living in Extreme Poverty: Report

ISLAMABAD:
Pakistan’s poverty rate has climbed to an 11-year high of 29 per cent, while income inequality has touched its highest level in 27 years, amid a steep decline in real incomes and consumption over the last seven years, local media reported, citing an official survey released by the country’s Planning Ministry.

As per the findings, shared by Planning Minister Ahsan Iqbal, nearly 70 million people in Pakistan are now living in abject poverty based on the monthly poverty line of Rs 8,484 — a minimum expenditure required to meet the basic needs of life.

According to the preliminary poverty assessment for the fiscal year 2024-25, there was a 32 per cent increase in poverty since 2018-19 when the last Pakistan’s poverty survey was conducted.

The findings indicated that in 2019 the poverty ratio stood at 21.9 per cent, but rose to 28.9 per cent in the first year of the Pakistani Prime Minister Shehbaz Sharif-led government.

This marked the highest level since 2014, when the poverty rate was recorded at 29.5 per cent.

The survey highlighted a sharp rise in income inequality in Pakistan, which jumped to 32.7, the highest ratio since 1998, when it stood at 31.1.

Pakistan recorded the highest unemployment rate in 21 years at 7.1 per cent, along with the highest poverty rate in 11 years and the widest income inequality in 27 years — the outcomes described as the poor policy choices by the ruling class, leading Pakistani daily The Express Tribune reported.

The poverty in rural areas rose disproportionately, increasing from 28.2 per cent to 36.2 per cent, while urban poverty rose from 11 per cent to 17.4 per cent.

Iqbal noted that poverty increased across provinces, with Punjab rising from 16.5 to 23.3 per cent, a 41 per cent jump in seven years, and in Sindh, poverty jumped from 24.5 per cent to 32.6 per cent, marking a one-third surge over the same period.

In Khyber-Pakhtunkhwa, the poverty rate increased from 28.7 per cent to 35.3 per cent, reflecting nearly a one-fourth rise within a year.

Balochistan remains the hardest hit province, where almost every second person lives in poverty. The poverty ratio in the conflict-hit province increased from 42 per cent to 47 per cent — a rise of 12.4 per cent.

The report attributed the rise in poverty in Khyber-Pakhtunkhwa and Balochistan to the persistent security challenges that have disrupted livelihoods, constrained access to markets and essential services, and increased household vulnerability, disproportionately impacting the most vulnerable segments of society in these provinces.

The income inequality also increased across Pakistan, with Punjab rising from 28.4 to 32 per cent, Sindh from 29.7 to 35.9 per cent, Khyber Pakhtunkhwa from 24.8 to 29.4 per cent, and Balochistan from 21 to 26.5 per cent.