PAKISTAN stands at a critical juncture. The convergence of poverty, unemployment, demographic pressure and inequality reflects a deeply rooted crisis with far-reaching consequences for a country in which 44.7 per cent of the population lives below the poverty line, according to an article in the Pakistan Observer newspaper. Pakistan’s per capita income has stagnated and even declined in recent years, reflecting deepening economic challenges. According to the Pakistan Bureau of Statistics, during the fiscal year 2022-2023, the country recorded an 11.38 per cent drop in per capita income, falling from $1,766 in 2022 to $1,568 in 2023.

 

This decline coincided with a sharp contraction in the overall economy, which shrank by $33.4 billion, from $375 billion to $341.6 billion. The stagnation is largely attributed to persistent structural issues, including political instability, inflation, currency depreciation and weak industrial output, the article in the widely read English daily further states. Compared to regional peers, Pakistan’s GDP per capita remains significantly lower -- estimated at $6,950 in 2025.

 

The economic disparity between urban and rural regions further entrenches inequality, the article points out. According to the World Bank’s 2025 findings, nearly 44.7 per cent of the population lives below the poverty line, based on the revised threshold of $4.20 per person per day for lower-middle-income countries, a staggering figure that underscores the scale of deprivation.