The Economic Survey 2025-26 of the Government of Pakistan has revealed worrying figures regarding the economic and social situation of the country. According to the report, poverty is increasing rapidly in Pakistan, while government expenditure on education has reduced to a very low level. According to the survey, today about 3 out of 10 people in Pakistan are living in poverty. The report shows that Pakistan’s poverty rate was 21.9% in 2018-19, but it increased to 28.9% in 2024-25. That means lakhs of people have again reached below the poverty line.
According to the survey, continuously increasing inflation, economic crisis and income inequality are the main reasons for this. The income of many families is no longer enough to meet their household expenses easily. People’s problems have increased further due to increase in prices of food, electricity, fuel and other essential commodities. Due to inflation the purchasing power of the people has also reduced.
Poverty is not just a problem of villages
The report says that poverty is no longer just a problem of villages. Earlier poverty was more in rural areas, but now a large number of people are facing financial problems in cities also. Poverty has increased in all the major provinces of Pakistan. The report clearly says that due to increasing poverty, Pakistan may face major economic and social challenges in the coming years.
It has also been told in the survey that the gap between rich and poor is continuously increasing. A small section of the society escaped the economic shock, but the poor and middle class were more affected. The report has warned that if there is any major crisis in the Middle East, the money (remittances) Pakistan receives from abroad may be affected. This will affect the income of lakhs of families.
Government expenditure on education decreased by 23%
The situation is also not good in the field of education. Government expenditure on education decreased by 23% to Pakistani rupees 962 billion in fiscal year 2025. The total expenditure on education is only 0.8% of the country’s GDP, which is considered to be one of the lowest levels in the history of Pakistan.
According to the report, many schools, especially in poor areas, are still struggling with lack of basic facilities. Despite some improvements, millions of children are still not going to school. The literacy rate of women is also not satisfactory. The survey said that if Pakistan has to reduce poverty and create better employment opportunities for the people, then investment in education will have to be increased. There is a need for major improvements in the quality, access and system of education.
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