The Economic Survey 2025-26 shows a considerable decline in Pakistan's socioeconomic situation between 2018-19 and 2024-25. Poverty rose from 21.9% to 28.9%, signifying a 32% increase in the poverty headcount, implying that a higher proportion of the population is unable to fulfil basic living standards. Income inequality also deteriorated, with the Gini coefficient rising from 28.4 to 32.7, representing a 15% increase and suggesting a more uneven distribution of income.

Persistently high inflation has been a major contributing element to this downturn. The Consumer Price Index (CPI) increased by 125%, rising from 117.18 in 2018-19 to 264.03 in 2024-25, indicating that the overall price level more than doubled throughout the period. As prices climbed faster than incomes, household buying power fell dramatically. As a result, according to the planning commission, real income declines by 12% from Rs35,454 to Rs31,127, while real consumption also declines by 5% from Rs31,711 to Rs29,980, during the same........

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