New Delhi, March 31 (NationPress) Recent findings from the Social Policy and Development Centre (SPDC) reveal that poverty levels in Pakistan have escalated to an alarming 43.5%. This figure starkly contrasts with the official estimates provided by the Pakistan Bureau of Statistics (PBS) and the Planning Commission, which state that poverty stands at just 28.9%, as reported by the Express Tribune, based in Karachi.

The SPDC, which is a policy research institute, emphasizes that urban areas have experienced a more significant impact, with poverty rates rising more rapidly in cities compared to rural regions.

The 14.6% discrepancy between the SPDC's and the official figures is primarily due to differing methodologies. The PBS employs a Cost of Basic Needs approach, which updates historical poverty lines using the Consumer Price Index (CPI). This method tends to reflect the consumption habits of wealthier households, often underestimating the actual living costs for low-income groups and neglecting critical expenses like healthcare and access to clean water.

In contrast, the SPDC uses a calorific approach, also known as the Food Energy Intake method, which links household expenditures to the minimum calorie requirements necessary for basic survival. This technique utilizes adult-equivalent units to adjust for household size and establishes distinct thresholds for urban (2,230 calories) and rural (2,550 calories) populations. For the year 2024-25, the SPDC estimates the monthly poverty line to be Rs13,476 in urban regions and Rs10,283 in rural areas, which is significantly higher than the official figure of Rs8,484.

According to the SPDC's analysis, based on the Household Integrated Economic Survey (HIES) for 2024-25, national poverty has increased from 36.6% in 2018-19 to 43.5% in 2024-25. Urban poverty has risen by 10 percentage points, from 32.1% to 42.1%, while rural poverty has increased by five percentage points, from 39.3% to 44.3%. This translates to roughly 27 million individuals falling below the poverty line over the past six years.

SPDC Managing Director Muhammad Asif Iqbal stated, "The caloric method for measuring poverty is often considered more appropriate than the Cost of Basic Needs approach used by the government, especially in developing nations, as it directly focuses on food necessities."

He added that the official estimates of poverty are entirely disconnected from the economy's performance, which contradicts both economic theory and practical experience.

In conclusion, the SPDC report indicates that Pakistan is grappling with a widespread decline in living standards, particularly within urban settings, and highlights the critical need for more reliable and accurate assessments of poverty and inequality.