Why Are Pakistanis Getting POORER Despite Higher Incomes?

Описание: Pakistan’s latest Household Integrated Economic Survey (HIES) 2024–25 offers a mixed picture of household welfare after six years of economic shocks. In this video, we unpack the key findings from PRIME’s January 2026 Prime Plus report and explain what the data reveal about how Pakistani households are coping with rising costs, limited income growth, and persistent economic uncertainty.

The analysis shows that while household incomes have increased over time, essential expenditures, particularly food, transport, and utilities, have risen even faster, eroding welfare gains across income groups. Budget rigidity remains high, with a large share of household spending devoted to essentials, leaving little room to absorb economic shocks. Importantly, the data suggest that lower-middle and middle-income households face constraints similar to those at the bottom, reinforcing concerns about a shrinking middle class.

The video also discusses growing food insecurity, weak household savings, and differences in resilience between urban and rural households. In addition, it highlights barriers to digital inclusion, as high taxes and affordability constraints limit mobile phone ownership despite widespread usage.

Finally, the discussion places household outcomes within Pakistan’s broader macroeconomic context, examining why recent stabilisation has yet to translate into improved living standards. This video is essential viewing for policymakers, researchers, and anyone interested in understanding the real economic pressures facing households in Pakistan today.
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The Policy Research Institute of Market Economy is dedicated to generating high-quality research on market-oriented solutions for Pakistan's economic challenges. Our goal is to inform public policy and foster a deeper understanding of the economy.