Cost Basic Needs Surge: Poverty Reaches 28.8% in 2024-25
The Cost Basic Needs surge has pushed the poverty rate to 28.8% in 2024-25. This marks a sharp rise from 21.9% recorded in 2018-19. Over six years, living standards declined for many households. As a result, families now struggle to meet basic needs. Officials confirmed that hardship increased across provinces. However, Punjab and Sindh reported the biggest jump in recent years.
Key Reasons Behind the Increase
Several factors drove this upward trend. For example, three stabilisation programmes by the International Monetary Fund affected economic activity. In addition, the impact of World Bank pandemic support changes also played a role. Covid-19 disrupted jobs and income sources nationwide.
Moreover, rising inflation reduced household purchasing power. Slow GDP growth also limited income opportunities. Two major floods damaged crops and infrastructure. Therefore, rural communities faced deeper financial stress. Policy shifts, such as ending wheat support prices, added pressure. Consequently, food affordability declined in many regions.
Government Committee Submits Report
Planning Minister Ahsan Iqbal will likely release the official figures soon. Meanwhile, the committee has already submitted its findings. Dr G M Arif, who led the panel, confirmed the report’s completion.
However, he chose not to share the exact rate publicly. The ministry formed a 17-member Poverty Estimation Committee. This followed the Household Integrated Economic Survey 2024-25.
How Poverty Is Measured
Authorities use the Cost of Basic Needs method. They adjust it using CPI-based inflation data. Previously, the poverty rate declined from 50.4% in 2005-06. By 2018-19, it had reached 21.9%. Urban areas recorded an 11% rate that year. Meanwhile, rural regions stood at 28.2%. Experts from the World Bank helped refine this approach. Additionally, the Labour Force Survey will be released soon.
