After a gap of seven years, the Ministry of Planning has released a new poverty assessment report, revealing a sharp rise in the poverty rate across Pakistan. In 2024–25, the national poverty rate reached 28.9 percent, up from 21.9 percent in 2018–19.
The report sets the poverty line at a monthly income of Rs8,484 per person. Over the past seven years, the poverty rate has increased by seven percentage points, reversing the steady decline seen between 2013 and 2019.
The urban-rural divide remains significant. Poverty in urban areas stands at 17.4 percent, while rural poverty has surged to 36.2 percent. This indicates deeper economic vulnerabilities in rural communities.
Provincial data highlights regional disparities. Punjab’s poverty rate is 23.3 percent. Sindh saw a rise from 24.5 percent to 32.6 percent. Khyber Pakhtunkhwa’s poverty rate increased from 28.7 percent to 35.3 percent. Balochistan remains the most affected province, with poverty climbing from 41.8 percent to 47 percent.
Planning Minister Ahsan Iqbal said multiple factors contributed to the rise, including devastating floods in 2022 and 2025, which caused economic losses exceeding $33 billion. He also cited slow economic activity, inflation, and reduced household incomes as key drivers.
The report notes that structural weaknesses, the Covid-19 pandemic, and global commodity price surges worsened the economic situation. Inequality has widened alongside the rising poverty rate, especially in rural areas.
Iqbal emphasized the need for technology-driven growth and expanding opportunities for low-income groups. He highlighted that around nine million overseas Pakistanis send approximately $40 billion annually in remittances. Boosting exports and improving economic stability remain critical to reducing poverty sustainably.
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The new report provides a sobering view of Pakistan’s socio-economic challenges. It underscores the need for policy reforms, disaster resilience, and targeted development to address the rising poverty rate nationwide.
