Since 2019, purchasing power fell 17% in urban Pakistan and 5% in rural areas—despite rising incomes.

Household incomes: 2019 vs 2025 — overall a very sad story

Pakistan Bureau of Statistics has released HIES survey which is the benchmark for understanding how incomes have fared in the country.

Comparing 2018–19 with 2024–25, average household incomes in Pakistan show sharply contrasting trends depending on how they are measured.

In nominal rupees, incomes surged.

Between 2019 and 2025, average household income rose by about 98% nationally—with increases of 83% in urban areas and 109% in rural areas.

After adjusting for inflation, purchasing power weakened.

In real terms (constant prices), household incomes declined over this period:
• –17% in urban areas
• –5% in rural areas
• –10% nationally

In dollar terms, gains largely disappeared.

When converted using actual exchange rates, incomes between 2019 and 2025:
• fell by 11% in urban areas
• rose marginally by 2% in rural areas
• declined by 3% nationally

Retrospection is needed if we could have done better?

This time period saw some major shocks

1/ Covid
2/ Ukraine – Russia war and supply shocks to entire world
3/ Political upheavil in Pakistan
4/ Inflation spiral seen like never before
5/ Floods of massive size in some ways unprecedented