Pakistan Poverty Rate Jumps to 28.9%

Pakistan's poverty rate has risen sharply to 28.9% in the fiscal year 2026, up from 21.9% the previous year. This increase is evident across all major regions, with the highest poverty rate recorded in Balochistan at 47%.

The Economic Survey of Pakistan 2025-26 reports that the number of unemployed people has increased to 5.9 million from 4.5 million, resulting in an unemployment rate of 7.1%, which is a 12.69% increase from the previous year's rate of 6.3%.

The poverty rate has increased in all provinces, with Punjab recording a rise to 23.3% from 16.5%, Sindh to 32.6% from 24.5%, and Khyber Pakhtunkhwa to 35.3% from 28.7%.

Despite the expanded social welfare spending, including an allocation of Rs 722.9 billion to the Benazir Income Support Programme (BISP), the report highlights the need for sustained poverty reduction through stronger job creation, investment in education and skills development, and improvements in healthcare access.

The BISP provides cash assistance to low-income households and is the largest component of Pakistan's social safety net system. However, the report emphasizes the importance of rural industrialisation, small enterprises, and integrating employable skills with degree-awarding institutions to reduce long-term dependence on welfare.

The economic pressures on households in Pakistan are mounting, and the report suggests that broader economic reforms are necessary to address the issue of poverty and unemployment.

The situation in Pakistan is a cause for concern, and the government needs to take proactive measures to stimulate economic growth, create employment opportunities, and improve household incomes.

In conclusion, the rising poverty rate and unemployment in Pakistan are significant challenges that require immediate attention and action from the government and other stakeholders. The country needs to adopt a multi-faceted approach to address these issues and ensure sustainable economic growth and development.