Pakistan’s poverty rate has surged to 28.8 percent in fiscal year 2025, reflecting worsening economic conditions just ahead of the International Monetary Fund review mission. The latest figures mark a significant increase from 21.9 percent in 2019, indicating that nearly one in three citizens now lives below the poverty line.
Officials said the rise is driven by multiple factors, including high inflation, slow economic growth, and external shocks affecting household incomes. The lingering effects of the Covid-19 pandemic, global commodity price cycles, and climate-related disasters such as floods have further exacerbated the situation.
Provincial data shows the sharpest increases in poverty in Punjab and Sindh, highlighting a national trend rather than localized pockets of deprivation. Analysts note that ongoing fiscal tightening under IMF programs, including subsidy reforms, has added to cost-of-living pressures for vulnerable populations.
Policy measures such as the removal of wheat support prices and energy tariff adjustments have also impacted household budgets, making everyday essentials less affordable for lower-income groups. While macroeconomic indicators have shown some stabilization in recent months, social conditions remain under strain.
Experts warn that poverty reduction will remain a key challenge for Pakistan, as the government seeks to balance economic stability with public welfare. The upcoming IMF review is expected to assess both fiscal performance and the social impact of ongoing reforms.
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