ISLAMABAD: Planning and Development Minister Ahsan Iqbal said that Pakistan’s poverty rate has increased under the 2024–25 estimates, with national poverty rising from 21.9 percent to 28.9 percent, while rural poverty saw a sharper increase from 28.2 percent to 36.2 percent and urban poverty from 11 percent to 17.4 percent.
“Poverty and economic inequality have increased during the last seven years due to irresponsibility and changing economic policies.
Trends indicate a rise in income inequality across Pakistan between 2018-19 and 2024-25, with provincial patterns also reflecting this upward shift.
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Punjab increased from 28.4 to 32 percent, Sindh recorded a rise from 29.7 to 35.9 percent, Khyber Pakhtunkhwa moved from 24.8 to 29.4 percent, and Balochistan, though starting from a lower base, rose from 21 percent to 26.5 percent,” the minister said on Friday while launching the Poverty and Inequality Estimates 2024-25.
He said that the period between financial years 2019 and 2025 has been marked by an exceptionally challenging global and domestic economic environment shaped by multiple shocks.
He said that the COVID-19 crisis triggered a significant contraction in economic activity, followed by a global commodity super-cycle that translated into domestic inflation reaching multi-decade highs, eroding real incomes.
Additionally, the minister said that the geopolitical situation further disrupted supply chains. “These pressures were further intensified by severe climate shocks, notably the devastating floods of 2022, which caused losses estimated at USD30.1 billion, and then in 2025, with losses of USD2.9 billion, significantly affecting livelihoods, agricultural produce, and critical infrastructure, thus increasing poverty risks,” he said.
He emphasized the importance of achieving a higher growth rate and fostering wealth creation to alleviate poverty in the country.
He said there is a need to increase the country’s exports. He said that the provinces are not devolving resources at the district and grassroots levels to reduce poverty. He said they should pay attention to their less developed areas.
He said, “The total development budget was Rs 4,000 billion in 2018. Out of this, the federal government had Rs 2,000 billion and the provinces also had Rs 2,000 billion. Now, the federal government has Rs 1,000 billion, while the provinces have Rs 3,000 billion.
The provinces now have three times more development budget than the federal government. The federal government has a formula to distribute resources, but the provinces do not have any such system to distribute resources at the grassroots level.”
He said that PSDP allocations declined from 2.8 percent to 0.9 percent of the total budget in recent years. He pointed out that provinces now hold a larger share of PSDP resources compared to the federation and called for comprehensive provincial strategies to address poverty. “Provincial-level poverty reduction efforts directly impact national poverty indicators,” he said.
Speaking about regional differences, Ahsan Iqbal said that unequal distribution of resources within provinces increases poverty and inequality. He warned that terrorism often grows in districts where there is widespread poverty and neglect.
He said that strong and comprehensive policies are needed to ensure fair distribution of resources in underdeveloped districts for inclusive and sustainable economic growth.
He said that the government has also increased the budget of the Benazir Income Support Programme from Rs 592 billion to Rs 722 billion to support deserving families. However, he acknowledged that cash transfers alone cannot reduce poverty, stressing that the focus is now on poverty graduation programs to help individuals move beyond reliance on aid.
The Minister for Planning underscored the need for export-led growth to drive the country toward sustainable development.
He said that the country needs economic growth based on exports and better-performing industries at the provincial and district levels to reduce poverty.
The minister emphasized the promotion of Small and Medium Enterprises (SMEs) and cottage industries at district and provincial levels to unlock local potential and eradicate poverty at the grassroots level, while advancing progress toward the Sustainable Development Goals (SDGs).
“Export-led growth, along with quality education and competitive human resource development, can play a major role in reducing poverty at both national and provincial levels,” he said.
The minister attributed part of the economic challenges to the policies of the previous government led by Pakistan Tehreek-e-Insaf, stating that economic mismanagement and political instability forced the country to enter three programs with the International Monetary Fund.
He said that strict reform measures, including subsidy reductions under IMF agreements, contributed to rising poverty levels. He further criticized the previous government for promoting excessive imports and consumer-driven growth, noting that imports surged to USD80 billion, resulting in a USD50 billion trade deficit.
Reaffirming the government’s commitment to achieving a “Zero Poverty” goal, the minister said targeted development of potential districts through the establishment of small industrial units would remain a key priority in the coming years.
Copyright Business Recorder, 2026
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