Pakistan’s poverty rate has risen to 28.8 percent in fiscal year 2025, according to the latest estimates, highlighting worsening economic conditions ahead of the IMF review mission.
The figures show a sharp increase from 21.9 percent in 2019, reflecting a rise of nearly 7 percent over the past six years. The data underscores growing financial pressure on households amid prolonged economic challenges.
Officials said the increase in poverty has been driven by multiple factors, including high inflation, low economic growth, and external shocks.
The impact of the Covid 19 pandemic, global commodity price cycles, and climate-related disasters such as floods have also contributed to the rise.
Provincial trends indicate that poverty has increased significantly in Punjab and Sindh, pointing to a broader national issue rather than a localized trend. The latest estimates come at a time when Pakistan is engaged with the International Monetary Fund under multiple stabilization programs, which have required fiscal tightening and subsidy reforms.
These measures, while aimed at macroeconomic stability, have also added to cost-of-living pressures for lower-income groups.
Recent policy developments, including the removal of wheat support prices and adjustments in energy tariffs, have further affected household incomes.
Analysts note that while macroeconomic indicators have shown signs of stabilization in recent months, poverty reduction remains a major challenge. The upcoming IMF review is expected to assess not only fiscal performance but also the social impact of ongoing reforms, as the government balances economic stability with public welfare.