Pakistan’s Household Integrated Economic Survey (HIES) has highlighted a concerning increase in poverty levels, with food-insecure households soaring from 15.9% in 2018-2019 to a significant 24.4% in 2024-2025. This surge underscores the deepening human development crisis in Pakistan, marked by shrinking incomes, escalating poverty, and widening inequality due to persistent high inflation.
The report emphasizes that one in every four Pakistani families now struggles to fulfill basic nutritional requirements, indicating a severe national crisis. Urban areas have witnessed food insecurity rates more than doubling to 20.6%, while rural regions, though higher at 26.7%, are experiencing a slower rise.
Moreover, even households above the food insecurity threshold are facing challenges, with reduced consumption of staple foods like wheat, milk, poultry, and eggs. Expenditure patterns show a shift towards cheaper carbohydrates and away from quality proteins, raising concerns in a country grappling with a surge in type-2 diabetes cases.
The survey also reveals a sharp decline in educational spending, dropping from 4% to 2.5% of total expenditure. This decrease, coupled with the diminishing role of public education, poses a threat as private schooling options are also becoming less accessible.
Household savings and investments have seen a significant downturn, with real income falling by 3.4% over six years, leading to a 66% reduction in savings. The economy’s heavy reliance on consumption, supported by external remittances accounting for a growing portion of household income, indicates a concerning trend of dwindling self-employment opportunities.
The transition towards wage employment lacks the necessary growth in productive jobs, exacerbating income inequality. The bottom quintile has experienced a staggering 45% income decline, contrasting with a mere 6% drop for the top quintile. The report underscores the urgent need for a shift in public spending towards employment creation and inclusive growth to avert a deepening crisis.
