The wealthiest 10% of Pakistan’s population control 42% of the national income — lower than the average for major Asian economies but still large enough to sustain deep economic inequality, according to a new report by Oxfam International.
The report, An Unequal Future: Asia’s Struggle for Justice in a Warming, Wired World, highlights widening gaps in income and wealth across the region, driven by elite capture, climate shocks, and unequal access to digital resources. It shows that Asia’s richest 10% earn between 60% and 77% of total national income, while the poorest 50% receive only 12% to 15%. The top 1% own nearly half of all wealth.
Oxfam noted that the fortunes of Asian billionaires have more than doubled in the past decade, while the poorest half of the population in countries such as China, India, Indonesia, and South Korea have seen their income shares decline. In Pakistan, inequality persists despite slight improvements in income distribution compared to regional peers.
Amitabh Behar, Executive Director of Oxfam International, said Pakistan’s vulnerability to floods and climate disasters worsens the burden on low-income groups. “The richest continue to hoard wealth and avoid taxes, leaving ordinary people to face the worst of climate destruction,” he said.
The report found that Pakistan’s public investment in education was less than 2% of GDP in 2022 — among the lowest in Asia. It also highlighted that indirect taxes, such as sales tax, disproportionately affect the poor. Pakistan’s tax-to-GDP ratio, at about 10%, remains far below countries like Japan, South Korea, and New Zealand, where it exceeds 30%.
Oxfam warned that without structural tax reforms, stronger public spending, and equitable climate policies, rising inequality could undermine long-term economic stability and social cohesion across the region.
