New Delhi, March 4, Both inequality and poverty have increased in Pakistan over the past six years, according to a report released by the country's Planning Commission.
This is based on a comparison of household income levels and distribution, according to the Household Integrated Economic Survey (HIES) of 2018-19 and 2024-25, conducted by the Pakistan Bureau of Statistics (PBS).
The concerning statistic is the rise in the incidence of national poverty from 21.9 per cent in 2018-19 to 28.9 per cent in 2024-25. Rural poverty has increased from 28.2 per cent to 36.3 per cent, while it has risen in urban areas from 11 per cent to 17.4 per cent, according to a report in the Karachi-based Business Recorder.
The rise in the incidence of poverty reflects the increasing rate of unemployment, growing inequality, and declining real household incomes. The unemployment rate has increased from 5.7 per cent in 2020-21 to 7.1 per cent in 2024-25. The average real household income has fallen by 27.5 per cent over the past six years, the report stated.
The Planning Commission report highlighted various factors contributing to the decline in the living standards of the people. The first factor is the irresponsible and changing economic policies. The second cause of increased poverty is Covid-19 in 2019-20 and the large-scale devastation caused by the floods of 2022-23. Furthermore, the presence of IMF programs for stabilizing the economy has led to a reduction in subsidies, an increase in indirect taxes, and significant cuts in development spending.
The report was presented by the Planning Minister, who emphasized the need for export-led growth, focus on relatively underdeveloped districts, and a better fiscal balance between the federal and provincial governments. He emphasized the need for higher priority to social protection, including cash transfers and poverty alleviation programs, coupled with the promotion of Small and Medium Enterprises (SMEs).
The report highlights the need to recognize the importance of this information. Not only has it highlighted the widespread decline in the living standards of the people of Pakistan, but it has also suggested various components of an appropriate growth strategy to reduce inequality and alleviate poverty. Hopefully, these policies will be implemented by the current government, the Business Recorder article stated.