Pakistan faces a deepening poverty crisis. According to the latest government data, the country is actually facing institutional poverty, the absence of strong, predictable and resilient institutions that protect incomes, enable opportunity and absorb shocks. The Planning Commission of Pakistan revealed that monetary poverty has risen from 21.9 percent in 2018-19 to 28.9 percent in 2024-25.
The rural poverty exceeded 36 per cent and urban poverty crossed 17 per cent, with the national Gini index increasing from 28.4 to 32.7, amid sharper deterioration in some provinces, notably Sindh.
The Planning Commission of Pakistan found nominal incomes rising but real incomes falling because inflation outpaced earnings. Inequality widened across provinces and vulnerability to macro instability and climate shocks, according to the data.
