ISLAMABAD: After a gap of seven years, the Ministry of Planning has released a fresh poverty assessment report showing a significant rise in poverty levels across Pakistan, with the national poverty rate reaching 28.9 percent in 2024–25.
According to the report, the poverty line has been set at a monthly income of Rs8,484 per person. The data shows a marked increase compared to 2018-19, when the national poverty rate stood at 21.9 percent. The findings indicate that poverty has risen by seven percentage points over the past seven years.
The urban-rural divide remains stark. In 2024–25, the poverty rate in urban areas was recorded at 17.4 percent, while rural poverty surged to 36.2 percent, reflecting deeper economic vulnerabilities in the countryside.
Provincial data further highlights regional disparities. In Punjab, the poverty rate stands at 23.3 percent. In Sindh, poverty has risen sharply from 24.5 percent to 32.6 percent. In Khyber Pakhtunkhwa, the rate increased from 28.7 percent to 35.3 percent. Balochistan remains the most affected province, where poverty climbed from 41.8 percent to 47 percent.
Addressing the ceremony marking the release of the poverty report, Planning Minister Ahsan Iqbal said that poverty had declined steadily between 2013 and 2019 but reversed course in the following years. He noted that in 2019, the poverty rate was 21.9 percent, and from 2013 to 2019, consistent reductions had been achieved. However, over the past seven years, poverty increased by seven percentage points, reaching 28.9 percent in 2025.
The report attributes the surge in poverty to multiple shocks, including devastating floods and prolonged economic slowdown. It states that the 2022 floods caused economic losses of $30.1 billion, while additional flood-related damages in 2025 amounted to $2.9 billion. These disasters severely affected livelihoods, particularly in rural areas.
It also highlights that extremely slow economic activity led to a significant contraction in real incomes and household expenditures. Many families experienced multiple declines in purchasing power, exacerbated by persistent inflation and reduced economic opportunities.
Iqbal said eliminating poverty remains a key national objective. He recalled that during the previous government’s tenure, poverty estimates were conducted at the district level, and provinces were urged to prioritize development in the most backward districts. He emphasized that although poverty and backwardness are primarily provincial responsibilities, there is no effective formula for equitable resource distribution within provinces.
The minister acknowledged that economic instability in recent years contributed to the rise in poverty. He said the federal development budget had not increased over the past seven years, limiting the government’s capacity to invest in growth-enhancing projects.
Iqbal further revealed that inequality has also widened alongside poverty. He attributed much of the economic distress between 2018 and 2022 to structural weaknesses compounded by the Covid-19 pandemic and the global commodity supercycle, which sharply increased import costs and inflationary pressures.
He stressed that future growth must be technology-driven and said the government aims to extend technological access and opportunities to lower-income segments of society. He also mentioned a recent meeting in Dhaka with Dr. Muhammad Yunus, noting that Pakistan could benefit from Yunus’s experience in poverty alleviation and microfinance initiatives.
Highlighting external economic indicators, Iqbal said that approximately nine million overseas Pakistanis are sending around $40 billion annually in remittances, while exports from a population of 240 million amount to roughly the same figure.
He underscored the urgent need to boost exports to strengthen the economy and reduce poverty sustainably.
Despite increased provincial shares under the National Finance Commission Award, he said inflation has eroded real gains, contributing to higher poverty levels nationwide.
The newly released report paints a sobering picture of Pakistan’s socio-economic landscape, underscoring the scale of challenges posed by economic instability, climate disasters, and structural imbalances.
