Pakistan's Economic Mismanagement Fuels Record Poverty and Inequality
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Pakistan's Poverty Soars to 11-Year High, Inequality Worst in Three Decades
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News18•21-02-2026, 14:00
Pakistan's Poverty Soars to 11-Year High, Inequality Worst in Three Decades
•Pakistan's poverty rate has hit 29%, the highest in 11 years, with nearly 70 million people living below the monthly poverty threshold of Rs 8,484.
•Income inequality has reached its worst level in nearly three decades at 32.7, with rural communities disproportionately affected.
•Poverty in villages rose sharply from 28.2% to 36.2%, while urban poverty climbed from 11% to 17.4%.
•Real household incomes declined by 12% over seven years due to inflation outpacing earnings, and unemployment reached a 21-year high of 7.1%.
•IMF-backed stabilization measures, including subsidy cuts and energy price hikes, have intensified inflationary pressures, with citizens bearing the cost of flawed policies.