Pakistan Faces Economic Dilemma: Poverty and Inequality Surge

Pakistan's economic landscape is witnessing a troubling turn, with poverty soaring to 29%, the highest in 11 years. This alarming rise corresponds with a surge in income inequality, now at its worst level in nearly three decades. The situation underscores significant flaws in the nation's economic management, as millions are pushed below the poverty line.

A government survey quoted by The Express Tribune reveals that nearly 70 million citizens live below the monthly poverty threshold of Rs 8,484. Preliminary data for fiscal year 2024-25 indicates a 32% increase in poverty since the last survey in 2018-19. The rural population is disproportionately affected, with poverty escalating from 28.2% to 36.2%. Similarly, provincial data shows substantial poverty increases across all regions, including Punjab and Sindh.

The report further reveals a 12% decline in real household incomes over seven years, with inflation outpacing nominal income growth. Unemployment has also reached a 21-year high of 7.1%. Planning Minister Ahsan Iqbal attributes the situation to IMF-backed measures, stressing the need for long-term growth strategies. Despite macroeconomic stabilization claims, the report highlights the severe impact of years of flawed policies.