Pakistan’s poverty rate has increased to 28.8 percent in fiscal year 2025, according to the latest official estimates, signaling worsening economic conditions as the country prepares for a key review by the International Monetary Fund.
The data shows a sharp rise from 21.9 percent recorded in 2019, reflecting an increase of nearly seven percentage points over the past six years.
Economic experts say the figures highlight mounting financial pressure on households across Pakistan.
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Officials attributed the rise in poverty to multiple economic challenges, including persistent high inflation, weak economic growth, and repeated external shocks.
Analysts noted that rising food and energy costs have reduced purchasing power, particularly among lower- and middle-income groups.
The long-term impact of the Covid-19 pandemic also played a major role in reversing earlier poverty reduction gains. Lockdowns, job losses, and business closures disrupted economic activity nationwide.
In addition, global commodity price fluctuations and climate-related disasters — including devastating floods in recent years — have further strained public finances and household incomes.
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Provincial data indicates that poverty levels have increased significantly in Punjab and Sindh, suggesting that the issue is widespread and not limited to specific regions.
Pakistan is currently engaged in stabilization programs with the IMF that focus on fiscal discipline, subsidy reforms, and structural adjustments. While these measures aim to restore macroeconomic stability, they have also increased the cost of living.
Recent policy steps, such as the removal of wheat support prices and adjustments in electricity and gas tariffs, have added financial burdens on consumers. Many households are facing higher monthly utility bills while income growth remains slow.
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Economists point out that although some macroeconomic indicators — including inflation trends and foreign exchange reserves — have shown gradual improvement, poverty reduction remains a significant challenge.
The upcoming IMF review mission is expected to evaluate Pakistan’s fiscal performance, reform progress, and social protection measures. Experts believe the government will need to balance economic stabilization with stronger safety nets to protect vulnerable communities.
As economic reforms continue, policymakers face growing pressure to implement inclusive growth strategies that create jobs, control inflation, and provide relief to lower-income families.
