Pakistan’s Poverty Rate has risen to 28.9 percent, according to the Economic Survey 2025-26. The latest figures show that nearly 29 out of every 100 Pakistanis are living below the national poverty line.
The survey defines poverty based on a person’s ability to meet minimum essential spending requirements. Under the current benchmark, an individual earning at least Rs8,483 per month is not considered poor. This amount is roughly equal to $30.5 per month.
The report shows that poverty remains a much bigger challenge in rural areas than in cities. The rural Poverty Rate stands at 36.2 percent, while urban areas have a rate of 17.4 percent. This highlights the economic gap between rural and urban populations.
Among the provinces, Balochistan recorded the highest level of poverty. The province’s poverty rate reached 47 percent. Khyber Pakhtunkhwa followed with 35.3 percent, while Sindh reported a rate of 32.6 percent. Punjab recorded the lowest poverty rate among the provinces at 23.3 percent.
According to the survey, poverty has been increasing since the fiscal year 2018-19. At that time, the Poverty Rate was recorded at 21.9 percent. Over the past several years, the figure has climbed to 28.9 percent.
The report attributes the increase mainly to inflation and ongoing economic challenges. Rising prices have reduced household purchasing power and pushed more people below the poverty line. Many families have struggled to keep up with the cost of food, utilities, and other basic necessities.
The Economic Survey also highlighted growing income inequality in the country. The inequality index increased from 28.4 percent to 32.7 percent. Sindh recorded the highest inequality level at 35.9 percent. Punjab followed at 32 percent, while Khyber Pakhtunkhwa and Balochistan reported 29.4 percent and 26.6 percent respectively.
Labour market data included in the survey showed that Pakistan’s workforce consists of 83.1 million people. Of these, 77.2 million are employed, while 5.9 million remain unemployed.
The report also revealed that 762,499 Pakistanis left the country for employment opportunities abroad during 2025. The figure reflects continued pressure on the domestic job market and growing interest in overseas employment.
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The findings of the Economic Survey indicate that poverty and inequality remain major economic challenges. Policymakers are expected to focus on these issues as the country prepares for the next fiscal year.
