People plunging deeper into poverty in Pakistan

The best government is one that formulates effective policies and ensures inflation remains under control. However, Pakistan continues to struggle as poverty deepens, with millions falling below the poverty line.

According to a January 2025 World Bank report, the poverty rate in Pakistan stood at 25.3 percent during the fiscal year 2022/23, marking a sharp increase of seven percent compared to the previous year. The report further warned that another 13 million people had been pushed into extreme poverty during this period.

With the global poverty line set at Rs 600 per day in terms of purchasing power parity, a vast segment of Pakistan’s population now struggles to meet even basic living standards. In contrast, China has lifted 800 million people out of poverty over the last four decades by implementing equality-driven policies and providing affordable goods. Similarly, Iran successfully pulled 6.1 million citizens out of poverty in just two years, as per the World Bank’s October 2024 report. Meanwhile, a recent survey revealed that only 1 percent of Indian households now fall below the global poverty line, a drastic improvement from 50 percent three decades ago.
The Pakistani government claims that inflation has hit its lowest level in nine years, but the reality remains grim. Food inflation, in particular, continues to weigh heavily on the middle and lower-income classes. While the wealthy spend 20 to 30 percent of their income on food, the middle and lower-middle class spend nearly 70 to 80 percent, leaving them vulnerable to financial distress.
Historically, opening food shelters was seen as a means to alleviate poverty in Pakistan. While the government is now focusing on reducing inflation, the cost of essential goods such as petroleum, milk, meat, fruits, pulses, ghee, and cooking oil remains significantly high compared to neighboring countries.
To tackle this crisis, the government must take strategic steps. A prosperous Pakistan is possible, but only if the government takes decisive action to control inflation, ensure equitable resource distribution, and create sustainable economic opportunities.