Economic Reality

Economic Reality: Evidence shows Pakistan’s economy will get worse without major changes. The Planning Commission revealed that poverty has risen since 2018. From 2001, poverty had been falling, sometimes slowly, sometimes quickly. But now, for the first time in 25 years, it rose from 21.9% to 28.8% of the population.

Rising Inequality

A few months ago, the World Bank reported that economic growth no longer helps people escape poverty. Even when the economy grows, it creates fewer jobs, lifts fewer people out of poverty, and increases inequality. Corporate profits grew quickly, but most of that came from inflation, not real growth. Wages and incomes did not rise with inflation. Most people became poorer in real terms.

Limited Jobs

The economy has been weakening for years. Recent data show that Pakistan’s industrial system cannot support the country’s future. It is not competitive internationally. Most investments go to sectors where state-sponsored profits are available. The informal sector remains the main source of jobs. Wages and incomes remain low.

Rising Costs

The industrial system benefits only a few people. Ordinary citizens suffer. People pay through inflation, higher taxes, rising utility bills, and higher food and fuel costs. Most households have seen their real income fall over the past decade. Living expenses have increased across the country.

Some groups protected themselves. Civil servants received pay raises and allowances that kept them above economic pressures. In FY24 and FY25, they received 30% and 20% ad hoc relief allowances. They also received transport benefits. In 2024, Supreme Court judges got a 171% salary increase and a 400% rise in house rent allowance. High court judges got a 218% salary increase and the same rise in house rent.

Luxury Spending

The chief minister of Punjab decided to buy a luxury private jet. Other senior civil servants received super-luxury vehicles and 800 liters of fuel allowance.

Today, Pakistan faces a bankrupt economy, rising poverty, and a middle class consuming savings to survive. State elites continue to enjoy privileges and pay raises at the expense of ordinary citizens. The system works for billionaires and the elite but fails the common people. Ordinary citizens bear the cost while the powerful benefit.

Burdened Citizens

This is Pakistan’s reality. Ordinary people struggle to survive. Those in power protect themselves and ignore the suffering around them. Welcome to the future, where common citizens carry the weight of a failing system.

Published in Dawn, 26th February 2026

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