Pakistan's poverty rate rises to 28.9%, 5.9 million people unemployed: Economic Survey 2025-26

Pakistan's poverty rate rises to 28.9%, 5.9 million people unemployed: Economic Survey 2025-26
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Summary Pakistan’s poverty rate has climbed to 28.9 percent, while unemployment reached 5.9 million people, according to the Economic Survey 2025-26.

ISLAMABAD (Dunya News) - Pakistan’s poverty rate has risen to 28.9 percent, meaning nearly 29 out of every 100 people are living below the poverty line, according to the Economic Survey 2025-26 released on Thursday.

The survey states that poverty in Pakistan is measured based on an individual's ability to meet minimum essential expenditures. Under the official benchmark, a person with a monthly income of Rs8,483 is not classified as poor, an amount equivalent to approximately $30.5 per month.

The report shows a significant gap between rural and urban areas. Poverty in rural regions stood at 36.2 percent, compared with 17.4 percent in urban centres.

Among the provinces, Balochistan recorded the highest poverty rate at 47 percent, followed by Sindh at 32.6 percent and Khyber Pakhtunkhwa at 35.3 percent. Punjab reported the lowest poverty rate at 23.3 percent.

According to the survey, poverty has increased since 2018-19, when the national poverty rate stood at 21.9 percent. The report attributes the rise primarily to inflationary pressures and broader economic challenges that pushed millions of people into poverty.

The survey also highlighted growing income inequality across the country. The inequality index increased from 28.4 percent to 32.7 percent. At the provincial level, Sindh recorded the highest inequality at 35.9 percent, followed by Punjab at 32 percent, Khyber Pakhtunkhwa at 29.4 percent and Balochistan at 26.6 percent.

Labour market data showed that Pakistan’s labour force reached 83.1 million people. Of these, 77.2 million were employed, while 5.9 million remained unemployed, resulting in an unemployment rate of 7.1 percent.

The report further noted that 762,499 Pakistanis left the country for overseas employment during 2025, reflecting continued demand for foreign jobs and ongoing pressure on the domestic labour market.

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