Poverty in Pakistan has risen to 43.5%, as reported by the Social Policy and Development Centre (SPDC), surpassing official estimates. The SPDC study indicates a more severe situation compared to the figures provided by the Pakistan Bureau of Statistics (PBS) and the Planning Commission, which place poverty at 28.9%. Urban households have been disproportionately affected by this increase, with poverty escalating faster in cities than in rural areas.
The discrepancy of 14.6% between the SPDC and official statistics is attributed to methodological variances. The PBS bases its calculations on a Cost of Basic Needs approach, updating poverty lines using the Consumer Price Index (CPI), which may underestimate living costs for low-income families. Conversely, the SPDC employs a Food Energy Intake approach, linking spending to calorie requirements for subsistence, resulting in higher poverty thresholds for urban and rural populations.
According to the SPDC’s analysis of the Household Integrated Economic Survey (HIES) 2024-25, national poverty in Pakistan has surged from 36.6% in 2018-19 to 43.5% in 2024-25. Urban poverty has spiked by 10 percentage points, reaching 42.1%, while rural poverty has increased by five percentage points, reaching 44.3%. This six-year period has seen approximately 27 million individuals fall below the poverty line.
SPDC Managing Director Muhammad Asif Iqbal highlighted the advantages of the caloric approach over the Cost of Basic Needs method, especially in developing nations like Pakistan. He emphasized the need for more accurate poverty measurement aligned with economic performance. The SPDC report underscores a widespread decline in living standards in Pakistan, particularly in urban areas, emphasizing the necessity for improved poverty and inequality assessments.
