Pakistan's Poverty, Inequality Soar

Pakistan is facing its worst economic crisis in over a decade, with the poverty rate soaring to 29%, the highest in 11 years, and income inequality reaching 32.7, its steepest level in nearly three decades. Approximately 70 million Pakistanis now live below the monthly poverty threshold of Rs 8,484. Unemployment has climbed to a 21-year high of 7.1%. Real household incomes have declined by 12% over seven years, with inflation outpacing nominal earnings. The crisis is widespread, affecting all provinces, with Pakistan — Balochistan being the hardest hit. Planning Minister Ahsan Iqbal acknowledged that International Monetary Fund-backed stabilization measures, including subsidy cuts and currency devaluation, have intensified inflationary pressures. He emphasized that sustainable growth and wealth creation are crucial to reverse these trends, ruling out an early exit from the International Monetary Fund program and stating it would take years to undo the economic damage.