Nearly 29% Pakistanis living below poverty line: Report
What's the story
Nearly three out of every 10 Pakistanis are living below the poverty line, a new analysis has revealed. The report, published by Dawn, is based on data from the latest Household Integrated Economic Survey (HIES) and Pakistan Social and Living Standards Measurement (PSLM). It found that the national poverty rate soared to 28.9% in 2024-25 from 21.8% in 2018-19.
Rural impact
Rural areas worst affected
The report highlights that rural Pakistan has been the worst affected by the rise in poverty.
Between 2018-19 and 2024-25, rural poverty increased by around eight percentage points, while urban areas saw a six percentage point rise.
This trend points to an increasing economic divide between rural and urban regions of the country.
Economic factors
'Lost decade' for many households
The analysis attributes the sharp rise in poverty to a series of economic shocks, including repeated balance-of-payments crises and the COVID-19 pandemic.
Persistently high inflation and soaring commodity prices have also played a role.
The report describes this period as a "lost decade" for many households, with inflation-adjusted incomes and consumption falling across two survey cycles.
Wealth disparity
Economic growth concentrated among wealthier Pakistanis
The analysis also highlights how economic growth, when it occurred, was concentrated among higher-income groups.
Poorer households saw their purchasing power erode under inflationary pressure.
Wage-dependent families were hit hardest as price increases consistently outpaced income growth.
In contrast, wealthier Pakistanis were relatively protected from inflation due to their investments in property and financial assets, which appreciate during inflationary periods.