Pakistan’s Poverty Rate Increases by 7 Percentage Points Since 2019

Pakistan’s poverty rate increased to 29 per cent in 2024-25, compared with 22 per cent in 2018-19, while economic inequality also widened, highlighting the growing financial pressures on low-income households, according to the World Bank.

The World Bank’s October 2026 Poverty and Equity Brief estimates that around 70 million people in Pakistan are now living below the national poverty line. The increase represents a seven-percentage-point rise over six years and reflects a reversal in the country’s earlier progress in poverty reduction. World Bank+1

The report identifies high inflation, rising living costs, weak employment opportunities and declining real wages among the major factors affecting household incomes. These pressures have reduced the purchasing power of families, particularly those with limited financial resources.

The impact has been especially significant for workers whose earnings have failed to keep pace with increases in the cost of essential goods and services. Limited access to better-paying employment has further weakened the ability of vulnerable households to improve their living standards.

The report also highlights a widening gap between higher- and lower-income groups. Pakistan’s Gini index, a measure of consumption inequality, increased from 28.4 in 2018-19 to 32.7 in 2024-25, indicating a more unequal distribution of household consumption. Dawn+1

Separately, World Bank data show that approximately 23 per cent of Pakistan’s population lived below the international poverty threshold of $3 per day in 2024, equivalent to around 57.6 million people. This international measure uses purchasing power parity and is different from Pakistan’s national poverty line. pip.worldbank.org+1

The latest figures underline the challenge of translating economic stabilisation into improvements in household welfare. Sustained employment growth, stronger real wages and better access to essential services remain important factors in addressing poverty and reducing economic disparities.