Report Reveals Alarming Rise in Poverty Across Pakistan

A report by Pakistan's Social Policy and Development Centre highlights a sharp rise in poverty to 43.5%, exceeding official figures. The disparity is attributed to differing methodologies for calculating poverty, with urban areas disproportionately affected. The report calls for improved measurement tools and targeted interventions to combat escalating poverty.

The Social Policy and Development Centre (SPDC) in Pakistan has reported a significant increase in the country's poverty rate, which has climbed to 43.5%, far exceeding the official estimates. According to The Express Tribune, this marks a 14.6 percentage point discrepancy when compared to the Pakistan Bureau of Statistics' (PBS) and the Planning Commission's figure of 28.9%.

Urban areas are bearing the brunt of this rise, with the report indicating a faster pace of poverty growth in cities compared to rural regions. Between 2018-19 and 2024-25, national poverty rose from 36.6% to 43.5%, leaving an estimated 27 million more people in poverty. Cities saw an increase from 32.1% to 42.1% in urban poverty, while rural poverty increased from 39.3% to 44.3%.

The SPDC attributes the difference in poverty rates to methodological contrasts. While the PBS employs a Cost of Basic Needs approach, adjusting for inflation via the CPI, SPDC uses a Food Energy Intake method that considers caloric needs. They argue the official method underestimates the living costs for low-income families, overlooking essential expenses such as healthcare and clean water. Consequently, SPDC recommends a poverty line of PKR 13,476 for urban and PKR 10,283 for rural areas, significantly higher than the official PKR 8,484.

(With inputs from agencies.)