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Poverty Gini Coefficient: Pakistan Is Getting Poorer — And More Unequal

Pakistan’s poverty has surged from 21.9% to 28.2% since 2018-19 as incomes fell and inequality widened. The numbers demand structural reform.

Worn Pakistani 1000-rupee banknote

The Political Noise vs. Structural Truth

Social media reactions reflect polarization. Some blame PTI. Others blame PML-N. Some argue pandemic shocks distorted data. Others question measurement standards. But beyond partisan exchanges, one fact stands firm:

Households are poorer. Inequality is wider. Growth has not translated into equitable relief.

Blaming one regime does not fix structural fiscal imbalance. A growth model overly dependent on debt cycles, energy import distortions, regressive taxation, and weak productivity inevitably leads to income compression.

The collapse in real incomes cannot be dismissed as political rhetoric. It is reflected in cost-of-living pressures, rising utility burdens, and reduced purchasing capacity.

International Poverty Line Context

It is also worth noting that the 28–29% poverty rate is not calculated using the updated $3/day international poverty line. Under that threshold, estimates suggest extreme poverty could exceed 16%, meaning roughly 39–40 million Pakistanis living in extreme deprivation.

These numbers demand seriousness — not Twitter theatrics.

What This Actually Signals

Six years of rising poverty and widening inequality signal:

• Structural fiscal imbalance
• Weak productivity growth
• Regressive policy design
• Poor incentive alignment in taxation and energy pricing
• Failure to protect real incomes

Without reforming taxation incentives, federal fiscal transfers, energy pricing structures, and human capital investment, poverty reduction will remain fragile and reversible.

The argument is not about restoring one regime or another. It is about redesigning the economic architecture so growth is inclusive, resilient, and productivity-driven.

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