ISLAMABAD: After a hiatus of seven years, the Ministry of Planning has unveiled a new poverty assessment, revealing a concerning escalation in poverty across Pakistan. The latest figures indicate that the national poverty rate has climbed to 28.9% in 2024–25.
The report defines the poverty line as a monthly income of Rs8,484 per individual. Comparing these figures to the 2018–19 data, when the poverty rate was 21.9%, the increase of over 7 percentage points underscores a worsening economic situation.
The disparity between urban and rural areas remains stark. Urban poverty stands at 17.4%, whereas rural poverty has surged to 36.2%, exposing the deeper vulnerabilities faced by rural communities.
Regionally, the disparity widens further. Punjab’s poverty rate is at 23.3%, Sindh has seen an increase from 24.5% to 32.6%, Khyber Pakhtunkhwa’s rate rose from 28.7% to 35.3%, and Balochistan remains the most affected, with rates jumping from 41.8% to 47%.
Addressing the launch event of the report, Planning Minister Ahsan Iqbal noted that Pakistan experienced consistent poverty reductions from 2013 to 2019, but recent years have seen a reversal. He explained that in 2019, the poverty rate was at 21.9%, but it has since increased significantly, reaching nearly 29% in 2025.
The report attributes this surge to multiple shocks, notably severe floods and an ongoing economic slowdown. The 2022 floods resulted in estimated damages of $30.1 billion, with additional flood-related losses amounting to $2.9 billion in 2025. These calamities have had a profound impact on livelihoods, especially in rural regions.
Economic stagnation has also played a major role, with sluggish growth leading to declining real household incomes and purchasing power. Inflation persists at high levels, further diminishing household expenditures and deepening poverty.
Iqbal emphasized that eradicating poverty remains a national priority. He recalled initiatives from previous administrations, such as district-level poverty assessments and targeted development efforts in the poorest areas. However, he expressed concerns over the lack of an effective mechanism to ensure fair resource distribution within provinces.
Acknowledging recent economic instability, Iqbal pointed out that the federal development budget has remained stagnant over the past seven years, limiting the government’s capacity to fund growth-oriented projects. He also highlighted that widening income inequality is compounding the poverty challenge.
The minister linked much of the recent economic distress to structural issues, compounded by the COVID-19 pandemic and rising global commodity prices, which have driven up import costs and inflation. He called for a shift towards technology-driven growth and aimed to extend technological access to lower-income groups.
He also referenced a recent meeting with Nobel laureate Dr. Muhammad Yunus in Dhaka, suggesting Pakistan could benefit from Yunus’s microfinance and poverty alleviation strategies.
External economic indicators show that approximately nine million Pakistanis working abroad send around $40 billion annually in remittances, nearly matching the country’s total export earnings from a population of 240 million. Iqbal stressed the importance of increasing exports to bolster economic stability and reduce poverty sustainably.
Despite some increases in provincial financial shares under the National Finance Commission Award, inflation has continued to erode these gains, further aggravating poverty nationwide.
The latest poverty report paints a sobering picture of Pakistan’s socio-economic landscape, highlighting the urgent need to address economic volatility, climate-related disasters, and structural inequalities to secure a more stable future.
