Despite Balochistan recording the highest poverty incidence, Punjab witnessed the sharpest increase in poverty levels between 2018-19 and 2024-25, according to the Economic Survey.
ISLAMABAD: Pakistan witnessed a sharp reversal in its poverty reduction gains, with the national poverty headcount increasing to 28.9 per cent in 2024-25 from 21.9 per cent in 2018-19, according to the Economic Survey of Pakistan 2025-26 released on Thursday.
The survey revealed that poverty levels increased across all provinces during the period, with Punjab recording the fastest pace of increase despite maintaining the lowest poverty incidence among the four provinces.
Data from the survey showed that poverty in Punjab rose from 16.5 per cent in 2018-19 to 23.3 per cent in 2024-25, representing a 41 per cent increase. Sindh recorded the second-highest rise, with poverty increasing from 24.5 per cent to 32.6 per cent, a jump of 33 per cent.
In Khyber Pakhtunkhwa, the poverty rate climbed from 28.7 per cent to 35.3 per cent, marking a 23 per cent increase, while Balochistan saw poverty rise from 41.8 per cent to 47.0 per cent, reflecting a 12 per cent increase. Despite the comparatively slower pace of growth, Balochistan continued to register the highest poverty incidence among all provinces.
The Economic Survey noted that Pakistan had achieved significant progress in reducing poverty over the longer term. Based on the Cost of Basic Needs (CBN) approach, the national poverty headcount had declined substantially from 50.4 per cent in 2005-06 to 21.9 per cent in 2018-19. Improvements were observed in both urban and rural areas, supported by better access to public services and expanded social safety net programmes.
However, the latest estimates indicate a reversal of this trend. Rural poverty increased from 28.2 per cent in 2018-19 to 36.2 per cent in 2024-25, while urban poverty rose from 11.0 per cent to 17.4 per cent during the same period.
The survey also highlighted a widening gap in income distribution across the country. The national Gini coefficient, a key measure of inequality, increased from 28.4 in 2018-19 to 32.7 in 2024-25.
Urban inequality rose from 31.0 to 34.4, whereas rural inequality increased more sharply from 23.4 to 29.2, indicating that growing poverty has been accompanied by increasing disparities in income distribution.
At the provincial level, Sindh recorded the highest inequality in 2024-25, with a Gini coefficient of 35.9, followed by Punjab at 32.0, Khyber Pakhtunkhwa at 29.4, and Balochistan at 26.5. In 2018-19, the corresponding figures stood at 29.7, 28.4, 24.8, and 21.0, respectively.
The findings underscore the growing challenges facing households across Pakistan and highlight the need for targeted policy interventions aimed at poverty alleviation and reducing income inequality.
Poverty Increase by Province (2018-19 to 2024-25)
| Province | Poverty Rate 2018-19 | Poverty Rate 2024-25 | Increase (Percentage Points) | Percentage Increase |
| Punjab | 16.5% | 23.3% | 6.8 | 41% |
| Sindh | 24.5% | 32.6% | 8.1 | 33% |
| Khyber Pakhtunkhwa | 28.7% | 35.3% | 6.6 | 23% |
| Balochistan | 41.8% | 47.0% | 5.2 | 12% |
