Pakistan has seen a significant increase in its poverty rate over the past six years, reversing more than a decade of progress in poverty reduction, according to a report citing data from the economic survey 2025-26. The proportion of people living below the poverty line in Pakistan rose from 21.9% in 2018-19 to 28.9% in 2024-25, marking a notable shift after years of steady improvement.
This increase in poverty levels follows a period of consistent progress, during which Pakistan had successfully reduced its poverty rate from 50.4% in 2005-06 to 21.9% in 2018-19. Factors such as record-high inflation, currency depreciation, devastating floods, and economic stabilization measures have collectively exerted pressure on household incomes and living standards.
The survey reveals a rise in poverty across both rural and urban areas in Pakistan. Rural poverty escalated from 28.2% in 2018-19 to 36.2% in 2024-25, while urban poverty increased from 11% to 17.4% during the same period. Regional disparities have also widened, with nearly half of Balochistan’s population now living below the poverty line, making it the most affected province.
Poverty levels have notably surged in Sindh and Khyber Pakhtunkhwa, while Punjab has also experienced a significant increase, indicating a widespread impact of recent economic shocks throughout the country. The Economic Survey highlights that the burden of rising prices and slowing income growth has not been evenly distributed, leading to a growing gap between financially secure households and those facing challenges.
Despite the concerning rise in poverty rates, the survey points out positive progress in various social indicators in Pakistan. Improvements in school attendance, literacy rates, expanded immunization coverage, and decreased infant mortality rates suggest that investments in education and healthcare are yielding positive outcomes even amid economic challenges.
To assist vulnerable households, the government has raised the allocation for the Benazir Income Support Programme (BISP) by 17% and extended its coverage to 12 million families. However, the survey underscores that while cash assistance is crucial, it alone cannot tackle the broader issues of poverty and inequality.
