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Rising incomes, falling purchasing power: Household earnings lose ground after inflation between 2019 and 2025: Gallup Pakistan

Islamabad: According to Gallup Pakistan, the data released by the Pakistan Bureau of Statistics (PBS) through its Household Integrated Economic Survey (HIES) 2024-25 indicate a sharp divergence between headline income growth and real living standards in Pakistan over the past six years.Comparing 2018-19 with 2024-25, average household incomes in Pakistan rose sharply in nominal rupee terms. Nationally, incomes increased by approximately 98%, with gains of 83% in urban areas and 109% in rural areas. On the surface, household earnings nearly doubled during this period.However, once adjusted for inflation, the picture reverses. In real (constant-price) terms, household purchasing power declined by 17% in urban areas, 5% in rural areas, and 10% nationally, indicating that rising prices more than offset income growth for most households.When incomes are converted into US dollar terms using actual exchange rates, the gains largely disappear. Between 2019 and 2025, average household incomes fell by 11% in urb an Pakistan, rose marginally by 2% in rural areas, and declined by 3% nationally.Taken together, the data suggest that despite substantial increases in nominal incomes, Pakistani households are materially worse off in terms of purchasing power, particularly in urban areas.Gilani Research Foundation is a not-for-profit public service project to provide social science research to students, academia, policymakers, and concerned citizens in Pakistan and across the globe.Gilani Research Foundation is headed by Dr. Ijaz Shafi Gilani who pioneered the field of opinion polling in Pakistan and established Gallup Pakistan in 1980. Currently, Dr. Gilani, who holds a Ph.D. from the Massachusetts Institute of Technology (MIT) and has taught at leading universities in Pakistan and abroad, is Chairman of Gallup Pakistan.Gallup Pakistan is not related to Gallup Inc. headquartered in Washington D.C. USA. We require that our surveys be credited fully as Gallup Pakistan (not Gallup or Gallup Poll). We disclaim any respo nsibility for surveys pertaining to Pakistani public opinion except those carried out by Gallup Pakistan, the Pakistani affiliate of Gallup International Association.