Pakistan's national poverty rate rose to 28.9% during the 2024-25 fiscal year [1].

This increase signals a deepening humanitarian and economic crisis as millions of citizens lose access to basic necessities. The trend reflects the failure of current economic stabilizers to protect the most vulnerable populations from volatile market conditions.

Data from the Economic Survey indicates that nearly three in 10 Pakistanis now live in poverty [2]. This represents a significant increase from the 2018-19 fiscal year, when the national poverty rate stood at 21.9% [1].

According to the report, approximately 70 million people are now living below the poverty line [1]. This surge is attributed to sustained high inflation and widening income inequality, which have pushed more households into precarious financial positions [2].

The report highlights a deterioration in household conditions across the country. As costs for essential goods rise, families are forced to reduce spending on critical services. Specifically, spending on education has hit a new low as households prioritize immediate survival over long-term investment [2].

The rise in poverty levels suggests that the economic burden is not being shared equally. While some sectors may show stability, the bottom tier of the population faces a compounding cycle of debt and diminished purchasing power.

“Approximately 70 million people are now living below the poverty line.”

The climb in poverty from 21.9% in 2018-19 to 28.9% in 2024-25 indicates a systemic erosion of the Pakistani middle and lower classes. By hitting new lows in education spending, the country faces a potential long-term human capital crisis, where current economic instability creates a generational gap in literacy and skill acquisition that will hinder future GDP growth.