Pakistan’s Household Integrated Economic Survey 2024–25 reveals a sharp shift in household spending, with food and housing now absorbing almost two out of every three rupees. Federal Minister for Planning Ahsan Iqbal noted that rising inflation, higher living costs, and currency depreciation have caused expenses to outpace incomes over the past six years.
The survey shows households increasingly depending on foreign remittances and informal financial support. Remittances now contribute nearly 8% of total household income, up from less than 5%, while informal gifts and assistance have doubled to 4.6%. This reliance is even stronger in rural areas, where external support has nearly doubled over the same period.
Average monthly income has risen from Rs. 41,545 to Rs. 82,179, with urban households earning significantly more than rural ones. However, expenditures have grown faster—from Rs. 37,159 to Rs. 79,150—highlighting mounting financial pressure. Income inequality remains stark, as the richest 20% earn over three times more than the poorest 20%.
Food accounts for 37% of household spending, largely on essentials such as milk, wheat, sugar, and cooking oil. Housing, electricity, and gas make up another 26%, while education, health, and recreation receive much smaller shares. These figures reflect how families are reshaping their budgets to prioritize basic needs.
Economists attribute this trend to prolonged high inflation, currency devaluation, and IMF-linked policy measures, which have particularly strained middle-income households. The growing dependence on remittances and informal support signals weakening domestic income sources and changing consumption patterns.
Overall, the survey highlights the increasing financial stress on Pakistani households and underscores the need for policies that reduce living costs and protect essential spending.