Archive · 21 Aug 2025
Pakistan Economic Crisis: Poverty and Inflation Concerns
Pakistan is facing an economic crisis.
Almost half the population lives in poverty, and the country's income per person has decreased.
The overall economy has shrunk, making things harder for people.
Essential items like food and energy are becoming more expensive, as inflation rises.
There are also big differences between cities and rural areas, with cities having more money and better services.
Many people are finding it hard to make ends meet.
44.7% of Pakistan's population lives below the poverty line.
Per capita income in Pakistan fell to $1,568 in 2023.
The Pakistani economy contracted by $33.4 billion in fiscal year 2022-2023.
16.5% of the population lives in extreme poverty, earning less than $3 per day.
Inflation in Pakistan rose to 4.1% in July 2025, impacting food and energy prices.
- Who
- The Pakistani population and the government.
- What
- An economic crisis marked by poverty, declining income, and inflation.
- When
- Recent years, with data cited through July 2025.
- Where
- Pakistan
- Why
- Due to a convergence of poverty, unemployment, and inequality.
- Poverty Rate
- 44.7%
- Per Capita Income (2023)
- $1,568
- Economic Contraction
- $33.4 billion
- Extreme Poverty
- 16.5%
- July 2025 Inflation
- 4.1%