Pakistan's economic mismanagement pushes poverty, inequality to record highs
: Pakistan's poverty rate has soared to 29%, the highest in 11 years, while income inequality has climbed to its worst level in nearly three decades, exposing deep cracks in the country's economic management. According to a government survey, nearly 70 million Pakistanis now live below the monthly poverty threshold of Rs8,484, as reported by The Express Tribune.
ANI
Feb 21, 2026 13:49 IST
Islamabad [Pakistan], February 21 (ANI): Pakistan's poverty rate has soared to 29%, the highest in 11 years, while income inequality has climbed to its worst level in nearly three decades, exposing deep cracks in the country's economic management. According to a government survey, nearly 70 million Pakistanis now live below the monthly poverty threshold of Rs 8,484, as reported by The Express Tribune.
According to The Express Tribune, the preliminary findings for fiscal year 2024-25 show poverty has jumped 32% compared to 2018-19, when the last survey was conducted.
The poverty ratio stood at 21.9% in 2019 but has now surged to 28.9%, marking the highest level since 2014. At the same time, income inequality has reached 32.7, the steepest since 1998. Rural communities have borne the brunt of the crisis.
Poverty in villages rose sharply from 28.2% to 36.2%, while urban poverty climbed from 11% to 17.4%. Provincial data paints an equally troubling picture. Punjab's poverty rate increased from 16.5% to 23.3%, Sindh's from 24.5% to 32.6%, Khyber Pakhtunkhwa from 28.7% to 35.3%, and Balochistan, already the poorest province, from 42% to 47%. security and limited access to markets have worsened conditions in KP and Balochistan.
The report also revealed a 12% decline in real household incomes over seven years. Although nominal incomes rose, inflation outpaced earnings, shrinking purchasing power. Real household expenditures fell by 5.4%, highlighting mounting financial strain. Unemployment has climbed to 7.1%, the highest in 21 years, while large-scale manufacturing remains below pre-pandemic levels, as cited by The Express Tribune.
Planning Minister Ahsan Iqbal acknowledged that IMF-backed stabilisation measures, including subsidy cuts, currency devaluation, energy price hikes and higher taxes, intensified inflationary pressures. However, he argued that long-term growth and wealth creation, rather than cash transfers alone, are essential to reverse the trend. Despite claims of macroeconomic stabilisation, the data signals a harsh reality where the people of Pakistan are paying the price for years of flawed policy decisions and stalled structural reforms, as reported by The Express Tribune. (ANI)
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