Rising poverty level contradicts Pakistan govt’s claim of economic recovery: Report

New Delhi, Oct 29 (IANS) While the Pakistan government has been claiming that the country’s economy is recovering, households continue to struggle with food, electricity, transport, and housing costs, according to an article in the Karachi-based Business Recorder.

The World Bank estimates that Pakistan’s poverty level rose to approximately 29 per cent in 2024–25, leaving around 70 million people below the national poverty line. Real wages declined by an average of 3.4 per cent annually between 2018-19 and 2024-25. This contradicts the claims of the Pakistani authorities that poverty is declining in the country.

For households, recovery means being able to buy food, pay rent, educate children, and meet unexpected expenses without falling into debt. Families, just above the poverty line, can be pushed below it by illness, job loss, rising rents or other increases in essential expenses. The challenge is to build an economy in which households can sustain their livelihoods despite economic shocks, the report states.

It points out that lower inflation does not mean prices return to previous levels; it means they rise more slowly. After successive years of price increases, households can continue to struggle even when inflation moderates.

Pakistan’s consumer price inflation reached 10.26 per cent year-on-year in September 2026, while the IMF’s October projections put average inflation at 9.9 per cent for FY2026–27.

The pressure is especially visible in household food budgets. The cost of essential foods, including wheat, flour, vegetables and meat, can force families to make difficult choices. When meat becomes less affordable, families may buy it less frequently. Rising food costs can also force households to reduce quantities, compromise dietary diversity, or postpone other expenses, the report observes.

Inadequate nutrition, compounded by extreme heat, cold and other harsh weather conditions, can increase health risks, particularly for children, older people and those already vulnerable. The consequences extend beyond household budgets to health, education, and human development, the report added.

–IANS

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