Household Integrated Economic Survey

Poverty in Pakistan increased from 21.8% in 2018-19 to 28.9% in 2024-25, driven by economic shocks including macroeconomic adjustments, the COVID-19 pandemic, inflation, and geopolitical events. Rural areas saw an 8% rise in poverty, compared to 6% in urban areas, with household incomes and consumption declining over the past decade.

The Pakistani budget provides tax relief for high-income salaried employees earning over Rs200,000 monthly but overlooks the majority of households earning less than Rs100,000. The Benazir Income Support Programme (BISP) allocates Rs838 billion, increasing quarterly payouts to Rs18,000 for 10 million low-income families, while power sector subsidies and education/health allocations remain insufficient for broader economic needs.