Rural areas hit hardest as inequality widens and benefits of growth fail to reach low-income households.
Image: The Telegraph
Pakistan’s poverty rate has increased to 28.9% in 2024-25, according to the Pakistan Economic Survey, despite signs of economic recovery and stabilisation.
The report shows a sharp rural-urban divide, with rural poverty rising to 36.2% compared to 17.4% in cities. Inequality has also widened, with the national Gini index increasing from 28.4 to 32.7.
At the provincial level, Balochistan recorded the highest poverty at 47%, followed by Khyber Pakhtunkhwa at 35.3%, Sindh at 32.6%, and Punjab at 23.3%.
Officials say the rise reflects the impact of inflation, currency depreciation, floods, and weak real incomes over recent years, even as macroeconomic indicators improve.
The government highlights increased social spending, including the Benazir Income Support Programme (BISP), but economists say welfare measures are cushioning hardship rather than reducing poverty.
Analysts warn that without stronger job creation and inclusive growth, economic recovery may not translate into improved living standards for millions of Pakistanis.
