Pakistan is experiencing increasing economic gaps among its provinces, leading to heightened poverty and unequal access to essential services like education, healthcare, and employment, as per a report. Recent data indicates a notable rise in poverty levels across the nation, with the poverty rate reaching approximately 28.9% in the fiscal year 2024–25, up from 21.9% in 2019. This surge means that an estimated 70 million individuals are living below the monthly poverty threshold of Rs 8,484, according to the European Times report.
The disparity between rural and urban areas in Pakistan is widening, with rural poverty at about 36.2%, more than double the 17.4% recorded in urban regions. Balochistan emerges as the most impoverished province, witnessing a rise in its poverty rate to 47% in 2024–25 from the previous 42%. Khyber Pakhtunkhwa saw an increase to 35.3% poverty, while Sindh reported a poverty rate of 32.6%.
In contrast, Punjab, the most developed province in Pakistan, displayed a relatively lower poverty rate of 23.3%, although it has also seen an increase in recent years. Punjab maintains economic dominance with superior infrastructure, increased investment inflows, and higher levels of human development. The province secures the largest portion of federal revenue under the National Finance Commission Award, primarily due to population-based fund distribution among provinces.
Experts note that this population-centric allocation has led to Punjab receiving over half of the federal divisible revenue pool, leaving poorer provinces struggling to finance developmental initiatives and social welfare programs. Balochistan, rich in natural resources like gas, copper, and gold, faces a “resource curse” scenario, where local communities benefit minimally from resource extraction. The poverty rate in Balochistan hovers around 40-45%, with an overall literacy rate of approximately 40% and female literacy at just 25%.
Analysts highlight that the uneven development distribution in Pakistan has extensive social and political implications. In less developed regions with inadequate infrastructure and limited public services, accessing schools, hospitals, and job opportunities becomes challenging for the residents.
