According to a recent research report, Pakistan’s poverty level has increased over the last few years “due to lack of social security programmes, increasing foreign debt, and disproportionate allocations of the Gross Domestic Product (GDP), among other important factors”. The report compiled by the South Asia Alliance for Poverty Eradication (SAAPE) points out that Pakistan spends less than 2 percent of its GDP on social protection, significantly below the global average of 11.2 percent.

A detailed analysis of the poverty situation in Pakistan shows that only 9.2 percent of the population is covered by one or the other social protection programme, with particularly low coverage for vulnerable groups: children (5.4 percent), persons with disabilities (1.7 percent) and the elderly (5.8 percent). The report also mentions how just 10 years ago the country’s debt was less than its defence expenditure, but now it is four times higher. This means that a large proportion of the revenue collected is spent on debt servicing with little left for economic and social development programs.

It is relevant to add here that the World Bank in its latest report said that nearly 40 percent of the population is living in poverty. According to experts, a big reason for the rising poverty level is the country’s unsustainable debt burden. Successive governments have relied on external borrowing as a crutch rather than pursuing meaningful economic reforms. With mounting debt servicing obligations consuming a vast portion of national income, there is little fiscal space for critical social spending. The result is underfunded education and healthcare systems, crumbling infrastructure, and an economy unable to generate sufficient employment.

In recent years the government has cut subsidies and raised taxes to meet International Monetary Fund (IMF) requirements. Due to this thoughtless policy, basic necessities have become unaffordable for many large proportions of the country’s population. The recent rise in electricity tariffs and fuel prices have put increased burden on those already teetering on the edge of survival.

Poverty is a significant challenge in Pakistan, with millions of people struggling to meet basic needs such as food, shelter, education, and healthcare. The root causes of poverty are both economic and structural, requiring comprehensive policies and long-term solutions. Slow economic growth due to limited industrialization has resulted in a struggling economy which has failed to generate enough job opportunities.

On the other hand, rising prices of essential goods have made it difficult for low-income families to afford basic necessities. Unemployment is a major cause of poverty but even those who find work earn below a livable wage, keeping them trapped in an unending cycle of poverty.

A large proportion of the population is either unemployed or working in low-paying, informal sector jobs. Low literacy rates and outdated curricula prevent individuals from gaining skills needed for better-paying jobs. Many children from poor families cannot afford education and end up in child labor.

Rapid population growth further increases dependency ratios, putting pressure on already limited resources. Widespread corruption diverts resources meant for public welfare, leaving many without basic services. Inefficiencies in government programs limit their effectiveness in poverty reduction. During the last few years floods, droughts, and other environmental challenges destroyed crops and displaced millions of people, pushing them deeper into poverty.

Poverty is a pressing economic and social issue which cannot be addressed by short-term fixes but calls for a commitment to long-term fiscal discipline, social justice and inclusive economic growth. From time to time incumbent governments come out with flowery rhetoric to banish poverty but no concrete action has ever been taken to this end. On the contrary, economic policies continue to  favour  the rich and harm the most vulnerable segments of society.

It is time to change tack and develop a comprehensive plan to divert resources to uplift the downtrodden sections of the population. Besides providing loans, tax relief, and training to help small businesses grow, the government should boost Industrialization and encourage investment in manufacturing, IT, and technology sectors to create more high-paying jobs. Microfinance programs should be launched to offer small loans to help low-income individuals start businesses and escape poverty.

Another urgent need is to increase the budget for education to ensure free and quality education for all, especially in rural areas in order to equip youth with market-relevant skills to increase employability. Simultaneously, measures should be taken to control food and fuel prices to reduce the burden on low-income families and minimum wage should be increased to ease inflationary pressure.

To reduce poverty in the rural areas, a new plan should be devised to support farmers by providing them subsidies, modern farming techniques, and better irrigation facilities to boost agricultural productivity. To help the most vulnerable sections of society the government must immediately expand social safety nets by strengthening programs like Ehsaas and Benazir Income Support Program (BISP). Poverty in Pakistan is a complex issue which requires coordinated efforts from the government, private sector, and civil society. Economic growth, education, governance reforms, and social welfare programs can play a crucial role in lifting millions out of poverty. Sustainable and long-term solutions are needed to ensure lasting progress.