Isalamabad: Pakistan has witnessed an alarming increase in its poor population, with nearly 27 million people falling below the poverty line over the last six years. According to the newly released Pakistan Economic Survey for the financial year 2025 to 2026, the national poverty rate has climbed sharply, pushing the total number of impoverished citizens to approximately 70 million. The data highlights a severe deterioration across both rural and urban areas, fueled by structural economic struggles.
The comprehensive report, which serves as a precursor to the federal budget, reveals that the countrywide poverty rate jumped from 21.9 per cent in the financial year 2018 to 2019 to 28.9 per cent in the financial year 2024 to 2025. This reflects an increase of seven percentage points. During this period, rural poverty climbed from 28.2 per cent to 36.2 per cent, while urban centres recorded a surge from 11 per cent to 17.4 per cent, showing that economic distress has spread deeply into cities.
Regionally, the data indicates a uniform decline in living standards across all four provinces, with Balochistan emerging as the worst affected territory. The poverty rate in Balochistan jumped from 41.8 per cent to a grim 47 per cent, leaving nearly half of its population in extreme deprivation. In contrast, Punjab remained the least impacted province, though its poverty rate still rose from 16.5 per cent to 23.3 per cent. Sindh recorded an increase from 24.5 per cent to 32.6 per cent, while Khyber Pakhtunkhwa saw poverty escalate from 28.7 per cent to 35.3 per cent.
Government analysts attribute this widespread crisis to a combination of severe currency depreciation, stringent stabilisation measures mandated by the International Monetary Fund, record high inflation, and catastrophic climate events such as floods. The report also pointed out widening income disparities, with the national Gini coefficient rising from 28.4 to 32.7 during the same six year period.
The tangible impact of this economic downturn is visible on the ground. In Balochistan, trade restrictions along the borders with Iran and Afghanistan have crippled local commerce, leaving families without any income. Local residents continue to face acute shortages of essential utilities, including healthcare and clean drinking water. The intense desperation among the youth has manifested in extreme public protests, including an incident in Quetta where a young graduate burned his academic degrees due to an absence of employment opportunities.
As policymakers prepare to table the upcoming federal budget, the survey underscores the critical challenge of balancing fiscal discipline with public relief. Independent experts warn that achieving long term economic stability will remain an uphill task unless targeted social safety nets are expanded to protect vulnerable citizens.