Pakistan poverty rate soars to 39 percent
Pakistan’s poverty rate climbed to 39 percent as economic troubles pushed 12.5 million more people below subsistence levels. Inflation and declining per capita output squeezed families already struggling with basic needs, while over one-third of children remained out of school in 2024-25. Energy sector debts reached 2.4 trillion rupees through guaranteed profit contracts with private power producers that forced payments regardless of electricity demand.
Natural disasters worsened conditions as floods damaged crops and livestock across multiple provinces. More than 11.8 million people faced food shortages through winter, with 2.2 million in emergency situations. The rupee maintained apparent stability at 282.01 against the dollar through central bank purchases of $9 billion in the money markets, despite weak economic fundamentals. Currency interventions accounted for 30 to 40 percent of daily trading volume in a shallow foreign exchange market handling just $200 million to $300 million per day.
