Government Survey Shows Sharp Reversal in Poverty Reduction Trend
ISLAMABAD: The poverty rate in Pakistan has surged sharply in the fiscal year 1014-25. The rapid surge in the poverty rate, to 28.8 percent, has been noted after six years.
Poverty has increased significantly over the past six years, with the latest official estimates showing that 28.8% of Pakistan’s population lived below the poverty line in 2024-25. The new figures mark a sharp rise from 21.9% recorded in 2018-19, reflecting an increase of 6.9 percentage points.
According to official sources, the government derived the updated estimates from the Household Integrated Economic Survey (HIES) 2024-25. The Survey indicates that poverty levels rose across all provinces, particularly in Punjab and Sindh. Khyber Pakhtunkhwa also recorded an increase, while Balochistan witnessed a slight uptick.
Officials attributed the surge to multiple economic shocks. They cited three IMF stabilisation programmes, the Covid-19 pandemic, global commodity super-cycles, soaring inflation, slower GDP growth, two super floods, and the withdrawal of wheat support prices as major contributing factors. Consequently, economic pressures intensified for households nationwide.
Planning Ministry Finalises Poverty Estimates Under CBN Method
Minister for Planning Ahsan Iqbal is expected to release the official figures shortly. Meanwhile, Dr G M Arif, Chairman of the Poverty Estimation Committee, confirmed that the committee submitted its report to the government but declined to disclose the exact rate before the formal announcement.
The Ministry of Planning constituted a 17-member committee to estimate poverty and inequality under its mandate. The government calculated poverty using the Cost of Basic Needs (CBN) approach and adjusted the threshold with CPI-based inflation.
In the past, the rate of fell from 50.4% in 2005-06 to 21.9% in 2018-19.
