Pakistan Introduces New Poverty Formula, Sets Poverty Line at Rs8,483 Per Person

In a significant policy shift, the federal government has unveiled a new methodology for measuring poverty, officially setting the poverty threshold at Rs8,483 per person per month.

Under the revised formula, individuals earning more than Rs8,483 each month will not be considered poor. The updated framework aims to redefine how poverty is measured across the country and how household welfare is assessed for policy planning and social support programs.

The announcement has already sparked discussion among economists, policymakers, and social welfare experts, with many questioning how effectively a single income benchmark can reflect the varying cost of living across different regions of the country.

According to official estimates based on the new methodology, approximately 28.9% of Pakistan’s population currently lives below the poverty line. This means nearly three out of every ten citizens fall within the government’s definition of poverty under the revised measurement system.

Supporters argue that the updated approach provides a more standardized and data-driven method for tracking poverty trends. Critics, however, are expected to scrutinize whether the threshold accurately captures the economic realities faced by households struggling with inflation, rising utility costs, healthcare expenses, and education-related spending.

Samad

Writer & Blogger

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