Pakistan crisis
India
C
CNBC Awaaz03-01-2026, 17:02

Pakistan Plunges into Deep Crisis: Families Spend 63% Income on Essentials

  • A government survey reveals Pakistan is in a deep economic crisis, with families spending 63% of income on food and housing/utilities.
  • 37% of income goes to food alone, and 26% to housing and utilities, leaving little for education, health, or future needs.
  • Education spending has drastically fallen to just 2.5% of the budget, with combined spending on education, health, and recreation at 7%.
  • Reliance on foreign remittances has increased to 8% of household income, and external aid has more than doubled.
  • Despite an increase in average monthly income, expenses have grown faster (19% annually), weakening purchasing power and increasing inequality.

Why It Matters: Pakistan's economic crisis forces families to prioritize essentials, severely impacting education and future development.

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