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Poverty rate in Pakistan rises to 28.9pc, Economic Survey reveals

Pakistan's poverty rate climbed to 28.9pc, with rural areas worst affected as inflation, inequality and unemployment continued to strain households.

5 months ago
in Business
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ISLAMABAD (Web Desk) – Pakistan’s poverty rate has increased to 28.9 per cent, meaning nearly 29 out of every 100 people in the country are now living below the poverty line, according to the Economic Survey 2025-26 released on Thursday.

The survey noted that poverty is assessed based on an individual’s ability to afford minimum essential expenditures. Under the official benchmark, a person earning Rs8,483 per month is not classified as poor, which is equivalent to around $30.5 per month.

The report highlighted a stark contrast between rural and urban areas. Poverty in rural regions was recorded at 36.2 per cent, while the rate in urban centres stood at 17.4 per cent.

Among the provinces, Balochistan had the highest poverty rate at 47 per cent, followed by Khyber Pakhtunkhwa at 35.3 per cent and Sindh at 32.6 per cent. Punjab reported the lowest poverty level at 23.3 per cent.

According to the survey, the national poverty rate has risen since 2018-19, when it stood at 21.9 per cent. The increase has been largely attributed to persistent inflation and broader economic difficulties that have pushed millions of people below the poverty threshold.

The report also pointed to growing income disparities across the country. The inequality index increased from 28.4 per cent to 32.7 per cent.

At the provincial level, Sindh recorded the highest inequality at 35.9 per cent, followed by Punjab at 32 per cent, Khyber Pakhtunkhwa at 29.4 per cent, and Balochistan at 26.6 per cent.

Labour market figures showed that Pakistan’s labour force reached 83.1 million people, of which 77.2 million were employed and 5.9 million were unemployed, resulting in an unemployment rate of 7.1 per cent.

The survey further revealed that 762,499 Pakistanis went abroad for employment during 2025, reflecting sustained interest in overseas job opportunities and continued pressure on the domestic labour market.

Tags: [:en]Inflation[:][:en]Sindh[:]BalochistanEconomic Survey 2025-26Income InequalityLabour ForcePakistan EconomyPakistan PovertyPoverty Rateunemployment
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