How Pakistani households earn their income is quietly changing: Remittances are saving grace!

Pakistan Bureau of Statistics has released HIES 2025

Comparing 2018–19 with 2024–25, the structure of household income across Pakistan shows both continuity and important shifts.

At a broad level, wages and salaries remain the backbone of household income. Their share has edged up slightly—especially in urban areas—now accounting for about half of urban household income and over 40% nationally. This confirms that Pakistan continues to rely heavily on labour income, particularly in cities.

Non-agricultural activities have also gained marginally, suggesting a slow but steady expansion of services, informal businesses, and off-farm work.

Meanwhile, agricultural income sources (crop and livestock) continue to dominate rural livelihoods but show a gradual decline in share, reflecting both structural change and pressure on farm-based earnings.

The most striking change, however, is remittances.

Between 2018–19 and 2024–25:

Foreign remittances’ share of household income rose sharply, from 5% to nearly 8% nationally

In rural areas, foreign remittances now account for almost 1 in every 10 rupees of household income

Domestic remittances also increased, reinforcing the role of internal migration

Taken together, total remittance-based income has expanded dramatically, especially outside major cities.

This matters.

At a time when real purchasing power has weakened and domestic incomes are under pressure, remittances are increasingly acting as a stabiliser for household welfare—particularly in rural Pakistan. They are no longer just a supplementary income source; for many households, they are becoming a core pillar of economic survival.