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Pakistan Economic Survey Shows Poverty Reversal as Social Spending Falls

Survey authors link the rise in poverty to inflation and policy shifts that squeezed incomes and cut public investment in schools and hospitals.

Overview

  • The Pakistan Economic Survey 2025-26, released in June 2026, reports national poverty rising to 28.9% in 2024-25 after falling to 21.9% in 2018-19, reversing years of progress.
  • Public spending on education dropped to Rs962 billion, about 0.8% of GDP, and health spending also fell to roughly 0.8% of GDP, leaving basic school and clinic services underfunded.
  • Income inequality widened as the national Gini rose to 32.7, with provincial gaps steepening and Balochistan the worst hit at a 47.0% poverty rate.
  • Labour-market strain is evident: roughly 5.9 million people were unemployed and about 0.76–0.8 million Pakistanis left for overseas work in FY2025, with around 530,000 going to Saudi Arabia.
  • The report warns heavy reliance on remittances makes households vulnerable to Middle East shocks and says fiscal consolidation, exchange-rate and tariff changes have squeezed real incomes and human-capital investment.