The ‘World Inequality Report 2026’ has highlighted Pakistan for its significant income and wealth disparities among its populace. The report reveals that the top 10% of earners in Pakistan account for 42% of total income, while the bottom 50% receive only 19%. Wealth distribution is even more skewed, with the richest 10% holding 59% of total wealth.
Despite relying on IMF bailouts, Pakistan’s media has criticized the IMF for exacerbating income inequality within the country. Citing the book “A Thousand Cuts: Social Protection in the Age of Austerity,” the media points out a direct link between IMF program conditions and rising income inequality.
The article also addresses systemic issues contributing to inequality in Pakistan, such as widespread corruption, the dominance of the feudal agricultural sector, and the military’s control over businesses. It calls for a shift away from neoliberal and austerity-based IMF program conditions towards greater public sector involvement in the economy and increased social spending on essential services like health and education.
