Pakistan poverty rises to 28.8% in 2024-25, up from 21.9% in 2018-19

Poverty in Pakistan has increased to 28.8 per cent in 2024-25, compared to 21.9 per cent in 2018-19, marking a rise of 6.9 percentage points over six years, according to a news report, which cited official figures.

Official sources said poverty has increased across provinces, particularly in Punjab and Sindh, while Balochistan recorded a slight rise. In recent years, poverty had shown a declining trend, but this reversed in 2024-25 as the headcount rose sharply over the six-year period.

Owing to various factors — including three IMF stabilisation programmes over the past six years, the effects of Covid-19, commodity super-cycles, soaring inflation, lower GDP growth rates, two super floods and abandonment of wheat support prices — poverty levels in Pakistan have surged.

According to a notification issued by the Ministry of Planning, Development and Special Initiatives, a 17-member Poverty Estimation Committee was constituted following completion of HIES 2024-25. The committee, led by Dr G M Arif, former Joint Director of the Pakistan Institute of Development Economics (PIDE), was tasked with estimating national poverty and inequality figures.

The government measures poverty using the Cost of Basic Needs (CBN) approach, adjusted for inflation through the Consumer Price Index. Under this method, the poverty rate had declined from 50.4 per cent in 2005-06 to 21.9 per cent in 2018-19. In 2018-19, the poverty headcount stood at 11.0 per cent in urban areas and 28.2 per cent in rural areas.

Pakistan adopted the CBN-based methodology in consultation with a World Bank expert on poverty measurement. Officials noted that while Pakistan had previously experienced simultaneous economic growth and poverty reduction, the recent period has seen a reversal in the poverty trend.