Islamabad: Poverty levels in Pakistan have reached a concerning high, as noted by Shahid Rasheed Butt, a prominent business leader and former president of the Islamabad Chamber of Commerce. Despite signs of macroeconomic stability, including an improved current account position, household incomes are declining, leading to rising poverty and widening income inequality.
According to Islamabad Chamber of Commerce and Industry, Butt highlighted the troubling statistic that nearly 70 million of Pakistan's 240 million population live below the poverty line. He attributed the situation to declining real incomes and persistent inflation, which have made it difficult for families to cover basic expenses like food, education, and healthcare.
Butt also pointed to climate change, floods, and changing weather patterns as factors reducing farm incomes, while high inflation and slowing industrial activity exacerbate urban economic challenges. The shrinking middle class and limited employment opportunities have led to reduced investment and the exit of multinational companies from the country.
While Pakistan has moved away from the immediate threat of default, Butt emphasized that rising external and domestic debt are significant barriers to sustainable growth. He warned that without an increase in industrial output and agricultural income, unemployment and social pressures could worsen.
The sustained inflation has lowered real wages across sectors, curbing consumer demand and slowing domestic markets, according to Butt. He called for a shift in policy focus from short-term stabilization to long-term growth, advocating for structural reforms to prevent an uneven economic recovery that excludes large population segments from its benefits.
Butt urged the government to implement a clear plan for sustainable growth, reduce the debt burden, and restore private-sector confidence. He warned that without comprehensive reforms, expansion of the tax base, and rationalization of public spending, economic stability would not lead to long-term prosperity. Delays in addressing these issues, he cautioned, could prolong high poverty and inequality, diminishing Pakistan's growth prospects.
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