Poverty in Pakistan

Poverty in Pakistan has been recorded by the World Bank at 39.4% using the lower middle-income poverty rate of US$3.65 per day (2017 PPP) for the fiscal year 2023–24.^[1] In September 2021, the government stated that 22% percent of its population lives below the national poverty line^[2] set at Rs. 3030 (US$10) per month.^[3]

Independent bodies supported estimates of a considerable fall in the statistic by the 2007-08 fiscal year, when it was estimated that 17.2% of the total population lived below the poverty line.^[4] The declining trend in poverty as seen in the country during the 1970s and 1980s was reversed in the 1990s by poor federal policies and rampant corruption.^[5] This phenomenon has been referred to as the "poverty bomb".^[6] In 2001, the government was assisted by the International Monetary Fund (IMF) in preparing the Interim Poverty Reduction Strategy Paper that suggests guidelines to reduce poverty in the country.^[7] According to a 2016 report submitted by Ministry of Planning and Development in the National Assembly of Pakistan, about 24.3% Pakistani lived below the poverty line which translates into 55 million people.^[8]

In 2022, Pakistan's Human Development Index (HDI) was 0.544, and ranks 161 out of 192 countries.^[9][10][11] In 2024, Pakistan ranked 164 out of 194 countries.^[12] However, the ranking under the inequality adjusted Human Development Index (IHDI) was 138th.

As of 2025, approximately 45% of Pakistan’s population was living below the poverty line. The information was based on revised poverty thresholds and survey data from 2018–19. The World Bank also noted a rise in extreme poverty, with the proportion increasing from 4.9% to 16.5%. Additionally, 10 million additional individuals were found to be at risk of descending into poverty.^[13][14]