It is the highest level since 2014 when the poverty rate was recorded at 29.5%. The situation of income inequality in society was more alarming, as the survey showed that inequality jumped to 32.7 - the highest ratio since 1998 when it was recorded at 31.1. Pakistan has now officially the 21 years' highest unemployment rate of 7.1%, highest poverty rate in 11 years and the highest inequality in 27 years, which are the direct outcomes of the poor policy choices by the ruling class. In Punjab, poverty increased from 16.5 to 23.3%, an increase of 41% within seven years. Despite recent macroeconomic improvement, households experienced prolonged real income compression due to historically high inflation, energy price adjustments, exchange rate depreciation, and higher taxation, especially indirect taxes.

Source: The Express Tribune February 21, 2026 07:26 UTC