n Pakistan, poverty is not merely a reflection of economic scarcity—it is the result of a deeply entrenched structural malaise rooted in flawed governance, historical inequities and a national ethos shaped by elite capture and societal indifference. Despite numerous policy pronouncements and donor-driven poverty alleviation programmes, poverty continues to define the lived experience of millions. According to the most recent World Bank estimate, approximately 42.4 percent of Pakistan’s population lives below the poverty line. This figure does not merely denote lack of income; it encapsulates multidimensional deprivation—of education, healthcare, dignity and opportunity.

What makes this even more alarming is the recognition by the IMF’s World Economic Outlook that despite signs of macroeconomic stabilisation and easing inflation, Pakistan’s economic growth remains insufficient to reduce poverty on a meaningful scale. This exposes the fallacy of equating growth with development and underscores a deeper crisis: the country’s development paradigm itself is exclusionary, benefitting a few while systematically marginalising many.

One of the key drivers of this exclusion is Pakistan’s tax structure, which leans heavily on indirect taxation. Although recent reforms have aimed to increase the share of direct taxes, indirect taxes continue to account for over half of the total revenue. This system disproportionately burdens the poor, who spend a larger share of their income on consumption, while allowing wealthier individuals and corporations to exploit loopholes and avoid fair taxation. Moreover, tax evasion, under-invoicing and politically motivated exemptions dilute revenue collection. The result is a regressive model that widens the gap between the rich and the poor, reinforcing existing inequalities.

The concentration of land ownership further exemplifies the institutional entrenchment of inequality. Roughly 5 percent of agricultural households control about two-thirds of Pakistan’s farmland. This feudal legacy persists across provinces, particularly in the Punjab and Sindh, where landlords with large land holdings wield disproportionate economic and political power. For millions of landless peasants, tenancy arrangements offer little security and perpetuate cycles of indebtedness and servitude. These structural imbalances inhibit agricultural productivity, discourage innovation and limit social mobility. More critically, they curtail democracy by embedding feudal influence deep within local and national political systems.

Education, a proven equaliser, remains neglected in Pakistan’s policy priorities. With only 1.5 percent of GDP allocated to education in the 2023–24 fiscal year, the system remains plagued by underfunded schools, unqualified teachers and stark rural-urban disparities. Access to quality education is deeply stratified along class, gender and geographic lines. Children in Balochistan and southern Punjab face vastly different futures compared to their counterparts in Islamabad or Lahore. Elite private schooling coexists with dysfunctional public institutions, effectively creating parallel societies. The absence of a robust public education system entrenches poverty by depriving the poor of the most reliable pathway to empowerment and economic participation.

Poverty is not inevitable in Pakistan. It is the outcome of conscious policy choices, entrenched social hierarchies and a mindset that has tolerated injustice for far too long. 

From a sociological perspective, poverty in Pakistan must be understood as a systemic outcome of social exclusion. The country’s rigid class structures, patriarchal norms and ethnic hierarchies create layers of disadvantage. Women, especially in rural areas, are disproportionately affected by poverty due to gender-based discrimination in education, employment and inheritance. Religious and ethnic minorities also face institutionalised marginalisation, limiting their access to services, representation and opportunities. Poverty, in this context, is not just about economic deprivation—it is also about denied access, unrecognised voices and excluded identities.

The political economy underpinning poverty is equally alarming. The governance apparatus is plagued by corruption, inefficiency, and elite domination. Decision-making is often guided by short-term political expediency rather than long-term structural reform. The state’s overreliance on international financial institutions like the IMF has introduced austerity measures—cuts in subsidies, public sector employment freezes, and reduced social spending—that tend to hurt the most vulnerable segments of society. While stabilisation may appease creditors, it often comes at the cost of deepened inequality and social unrest.

The social protection mechanisms remain insufficient in both scale and efficacy. The Benazir Income Support Programme, launched in 2008, has provided critical lifelines to millions of poor women. Yet, its reach is limited, its funding unstable and its impact often blunted by political interference. Such cash transfer programmes, while necessary, are no substitutes for structural transformation. Without parallel investments in education, healthcare and employment, social safety nets risk becoming palliatives rather than solutions.

What sustains this status quo is a national ethos that has, over time, normalised inequality. In public discourse, poverty is often viewed as an individual failure rather than a systemic issue. The rich are valourised for their success and the poor are stigmatised. This narrative deflects attention from institutional failures and discourages collective responsibility. A society that accepts vast disparities as natural or divinely ordained is unlikely to challenge the status quo. The result is a moral deficit as much as an economic one.

Breaking this cycle requires more than technical fixes. It requires a reimagining of the social contract to centre justice, dignity and inclusion. Progressive tax reform is essential to redistribute wealth and finance social development. The current over-reliance on indirect taxes must be replaced with a fair, direct taxation regime that holds the wealthy accountable. Similarly, meaningful land reforms are needed to dismantle feudal -monopolies and empower small-holding farmers. This will not only reduce poverty but also boost food security and local economies.

Public investment in education must become a national priority. This includes increasing spending, undertaking targeted reforms, incentivising teacher quality and involving communities in accountability. A robust vocational and technical education system aligned with market needs can equip the youth with employable skills, reducing dependency and fostering entrepreneurship. Additionally, inclusive urban planning and rural development can address spatial dimensions of poverty, ensuring equitable access to services and opportunities regardless of geography.

Governance reforms are indispensable. Merit-based public service, judicial independence and transparent institutions can restore citizens’ trust and enhance state’s responsiveness. Decentralised governance—where local bodies have the autonomy and resources to address community-specific issues—can also improve service delivery and foster accountability.

Poverty is not inevitable in Pakistan. It is the outcome of conscious policy choices, entrenched social hierarchies and a mindset that has tolerated injustice for far too long. To dismantle the structures that perpetuate poverty, the country must confront uncomfortable truths and reorient its political, economic and moral compass. Only through inclusive development, grounded in equity and rights, can Pakistan escape the vicious cycle of poverty and build a future that serves all its citizens—not just the privileged few.

The writer is a researcher based in Islamabad. He can be reached at zakiir9669@gmail.com.