A recent government survey has revealed the harsh economic reality facing Pakistani households, with nearly two-thirds of their expenditure—63%—going towards just food and housing-related utilities, including electricity and gas. According to the Household Integrated Economic Survey 2024-25 released by the Pakistan Bureau of Statistics (PBS), food alone accounts for 37% of household spending, while housing, electricity, and gas consume another 26%.
The survey, conducted from September 2024 to June 2025 and released on January 2, 2026, by Planning Minister Ahsan Iqbal, highlights how expenditures have outpaced income growth over the past six years. Average monthly household income rose from Rs41,545 to Rs82,179—an annual increase of 16.3%—but consumption expenses surged to Rs79,150, growing at 19% per year.
Rising Reliance on Remittances and Assistance
The share of foreign remittances in household income has climbed from below 5% to nearly 8%, with rural areas showing doubled dependence. Gifts and assistance now contribute 4.6%, up significantly, signaling shrinking domestic income sources amid double-digit inflation, currency devaluation, and IMF-mandated reforms that have raised taxes and energy prices.
Neglected Priorities: Education and Health Suffer
Alarmingly, combined spending on education, health, and recreation stands at just 7%, with education at a mere 2.5%—halved from previous levels—health at 3.4%, and recreation at 1.1%. Spending on restaurants has more than doubled that on education, particularly among higher-income groups. Income disparities remain stark: the poorest quintile earns Rs41,851 monthly, compared to Rs139,317 for the richest.
Experts attribute this to prolonged economic pressures, including an exodus of skilled youth due to limited opportunities, further straining families.