New Delhi, Feb 22 (IANS) Poverty in Pakistan has risen to its highest level in 11 years, with nearly 29 per cent of the population now living below the poverty line, according to an official survey released by Planning Minister Ahsan Iqbal.

The report cited by The Express Tribune showed that around 70 million people are living in extreme poverty, based on a monthly poverty line of Rs 8,484, which is considered the minimum amount needed to meet basic needs.

The preliminary findings for the fiscal year 2024-25 reveal that poverty has increased by 32 per cent since 2018-19, when the last survey was conducted.

In 2019, the poverty rate stood at 21.9 per cent. During the first year of Prime Minister Shehbaz Sharif’s current government, the rate jumped to 28.9 per cent.

This is the highest level since 2014, when poverty was recorded at 29.5 per cent, as per the report.

The situation of income inequality has also worsened sharply. The survey shows that inequality rose to 32.7, the highest level in 27 years.

The last time inequality was close to this level was in 1998. Pakistan is also facing its highest unemployment rate in 21 years at 7.1 per cent.

The planning minister admitted that economic stabilisation measures under the International Monetary Fund (IMF) programme contributed to the rise in poverty.

He said the withdrawal of subsidies, exchange rate devaluation and high inflation increased the cost of living.

Natural disasters and slow economic growth also played a role in pushing more people into poverty.

The report highlights that the poverty reduction trend has reversed for the first time in 13 years.

Rural areas have been hit harder, with poverty rising from 28.2 per cent to 36.2 per cent. Urban poverty also increased from 11 per cent to 17.4 per cent, the report said.

Across provinces, the situation has worsened. In Punjab, poverty rose from 16.5 per cent to 23.3 per cent over seven years.

In Sindh, it increased from 24.5 per cent to 32.6 per cent. In Khyber Pakhtunkhwa, the rate climbed from 28.7 per cent to 35.3 per cent.

Balochistan remains the worst-affected province, where nearly half the population lives in poverty, with the rate rising from 42 per cent to 47 per cent, according to the report.

The report also showed that real monthly household income fell from Rs 35,454 in 2019 to Rs 31,127 in the last fiscal year, a drop of 12 per cent.

Real monthly household spending also declined by over 5 per cent during the same period. Although incomes rose in nominal terms, high inflation outpaced earnings, reducing purchasing power.

–IANS

pk