MINISTER for Planning Prof. Ahsan Iqbal has acknowledged that poverty rose to 28.9% in 2024-25, which should be a worrisome development as its level was 21.9% in 2018-19. It is all the more alarming that a recent World Bank report said one out of every two of the poorest people living in the Middle East, North Africa, Afghanistan and Pakistan were living in Pakistan. Pakistan’s economic growth rate remains low and dipped further to 2% in the April-June quarter of this year, which was even lower than the 2.6% population growth rate, contributing to higher poverty and unemployment.
The Minister claimed that poverty reduction momentum had suffered a serious setback after 2018, as political instability, discontinuity in development policies, economic crises, the COVID-19 pandemic and devastating floods undermined earlier gains and constrained the country’s capacity to invest in its people. This is partially true as governments are forced to divert resources to unforeseen exigencies and unfortunately Pakistan remains in the grip of such emergencies including conflicts with neighbours, regional war triggered by the US-Israeli invasion of Iran and unending/expanding counter-terrorism campaign. There are, therefore, reasons to believe that the incidence of poverty must have registered an increase and the planned survey would reveal the real situation. However, these are not the only factors responsible for Pakistan’s abysmal performance in combating poverty. We have been pointing out in these columns repeatedly that the Government’s own policies share major blame for a rise in poverty level. Pakistan’s Federal Board of Revenue (FBR) tax collection has grown from Rs. 3,996.7 billion in FY 2018–19 to a record Rs. 13 trillion in FY 2025–26 but proportionate investment on people has not been made except for a significant increase in budget allocations for the Benazir Income Support Programme (BISP), which has miserably failed to produce the desired results. Instead of ensuring the trickle-down effect of the historic increase in tax collection, the Government opted for closure of ministries and departments compounding the unemployment problem; thoughtlessly hiked electricity tariff; imposed uncalled-for taxes on petroleum products; and brought even essential food items under the GST net. Similarly, instead of taking measures to bring down the input cost the Government has enhanced indicative prices for wheat procurement by Rs. 1,000 per forty kilogram, a decision that would make the staple food unaffordable for a majority of the population. The poverty level will continue to rise until and unless the Government reviews its policies and makes them people-friendly.
