Pakistan Poverty Hits 11-Year High of 29% Amid Record Income Inequality. -

In a sobering update on the national economy, Planning Minister Ahsan Iqbal revealed that Pakistan’s poverty rate has surged to 29%, an 11-year high. This reflects a significant increase from 21.9% in 2019, with approximately 70 million people now living below the poverty line.

Deepening Economic Inequality

The latest official findings highlight a devastating widening of the gap between the wealthy and the underprivileged:

Record Inequality: Income inequality has hit a 27-year peak, reaching a ratio of 32.7, the highest since 1998.
Survival Threshold: The report defines the extreme poverty line at a monthly requirement of Rs 8,484 per person to meet basic needs for food and shelter.
Unemployment Surge: Alongside rising poverty, the country is facing its highest unemployment rate in 21 years at 7.1%.

Erosion of Household Purchasing Power

The crisis is characterized by a prolonged period of “real income compression” for Pakistani families:

Declining Real Incomes: Real monthly household income has dropped by 12% over the past seven years, falling from Rs 35,454 in 2019 to Rs 31,127 in the latest fiscal year.
Falling Consumption: As inflation outpaces nominal earnings, real household expenses have decreased by 5.4%, indicating that families are significantly cutting back on essential spending.
IMF Impact: Minister Iqbal acknowledged that stabilization policies under the IMF program, including the withdrawal of subsidies and currency devaluation, contributed to this hardship by fueling record inflation.

Disclaimer: This post is for informational and awareness purposes based on official statements and recent economic reports. The figures mentioned reflect the latest findings on national poverty and income distribution. Please note that the background image is AI-generated and intended for illustrative reference only.