- By Akansha Pandey
- Sat, 21 Feb 2026 05:04 PM (IST)
- Source:JND
Pakistan is facing its grimmest economic reality in over a decade. According to the latest official survey unveiled by Planning Minister Ahsan Iqbal, the nation's poverty rate has surged to an 11-year high, leaving roughly 29 per cent of the population struggling to survive.
This isn't just a marginal increase; it is a full-blown crisis. Nearly 70 million people are now classified as living in extreme poverty. To put that in perspective, these millions are living on less than Rs 8,484 per month, a sum that barely covers the most basic caloric needs, let alone healthcare or housing.
The Widening Gap: Inequality At 27-Year High
While the poor are getting poorer, the divide between the haves and have nots, has never been wider in recent history. The report confirms that income inequality has hit its steepest level since 1998.
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The data paints a picture of a shrinking middle class and a devastated working class. Since 2019, when the poverty ratio sat at 21.9 per cent, the number of people falling into the poverty trap has accelerated sharply, peaking during the first year of Prime Minister Shehbaz Sharif’s current term.
Why Is This Happening?
Minister Ahsan Iqbal didn't sugarcoat the causes. He pointed directly to the "bitter pill" of IMF-mandated stabiliation. The withdrawal of subsidies and the aggressive devaluation of the currency have acted as a twin engine for inflation, crushing the purchasing power of the average household.
The statistics are sobering:
- Unemployment is at a two-decade high of 7.1 per cent.
- Real Household Income has plummeted by 12 per cent over the last seven years.
Rural Devastation: In the countryside, poverty has jumped from 28.2 per cent to a staggering 36.2 per cent.
Provincial Breakdown: A State Of Emergency
The crisis is most acute in the peripheral provinces, where security issues and lack of market access have crippled local economies.
Balochistan: Remains the hardest hit, with nearly half the population (47 per cent) in poverty.
Sindh And Khyber-Pakhtunkhwa: Both provinces saw massive jumps, with Sindh reaching 32.6 per cent and Khyber-Pakhtunkhwa climbing to 35.3 per cent.
Punjab: Even the industrial heartland wasn't spared, seeing its rate rise from 16.5 per cent to 23.3 per cent.
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No Quick Fix In Sight
The Minister was candid about the road ahead, stating that "cash transfers are not the solution." While programs like the Benazir Income Support Programme (BISP) offer a temporary safety net, Iqbal stressed that only sustainable wealth creation and growth can pull Pakistan out of this hole.
With the government tied to a strict IMF program, Iqbal warned that it would likely take another three years to even begin undoing the economic damage. For now, the millions of Pakistanis living on the edge of survival will have to wait for the promised "recovery."