Pakistan's Economic Crisis Deepens: Poverty Hits 28.9 Per cent as Unemployment Surges

Pakistan is facing renewed economic pressure as the country’s poverty rate reaches 28.9 per cent, while unemployment has also climbed sharply, highlighting the growing financial difficulties faced by millions of households. According to a report citing Pakistan’s Economic Survey 2025–26, the national poverty rate has risen significantly, with conditions worsening across the country’s major provinces.

Balochistan remains the worst-affected province, with its poverty rate reaching 47 per cent, up from 41.8 per cent. Poverty also increased in Khyber Pakhtunkhwa to 35.3 per cent, Sindh to 32.6 per cent and Punjab to 23.3 per cent. The employment situation has deteriorated as well. The number of unemployed people reportedly increased from 4.5 million to 5.9 million, while the unemployment rate rose to 7.1 per cent from 6.3 per cent. The report describes the figures as evidence of continuing difficulties in creating sufficient jobs and raising household incomes.

The Pakistani government allocated Rs 722.9 billion to the Benazir Income Support Programme (BISP) during FY26, with Rs 540.27 billion reportedly released. The programme provides financial assistance to low-income households and remains a major part of the country’s social safety net. However, the report suggests that cash assistance alone may not be enough to reverse the country’s poverty trend. It highlights the need for stronger job creation, greater investment in education and skills, improved healthcare and broader economic growth. The latest figures underline the scale of Pakistan’s economic challenge: rising poverty, fewer employment opportunities and widening regional disparities are putting increasing pressure on households despite expanded government welfare spending.