Pakistanis spent two out of three rupees on just two basic needs – food and electrified shelter – as reliance on foreign remittances and financial aid increased to meet rising expenses, a new government survey showed. Expenditure has increased at a faster rate than income due to ongoing economic pressure and rising cost of living, according to the Integrated Household Economic Survey 2024-25, released by Planning Minister Ahsan Iqbal on Thursday. The results of the survey, conducted after a gap of more than six years under pressure from the International Monetary Fund (IMF), shed light on how inflation has swallowed up people’s hard-earned money, leaving just 2.5% to spend on education. Education spending was less than half the cost of hospitality. The share of foreign remittances in household income rose from less than 5% to almost 8%, according to the survey. The contribution of donations and assistance also more than doubled to reach 4.6%, "indicating greater reliance on informal support networks"says the official report. According to independent experts, there has been an exodus of young people and talents from Pakistan due to limited job opportunities. These results show how difficult it has become for people to make ends meet. Rural households were more dependent on foreign remittances, which doubled in six years, indicating weaker employment opportunities for the majority of the country’s population. The increased reliance on foreign remittances and external aid reflects dwindling domestic revenue sources and the impact of double-digit inflation, according to a senior official at the Pakistan Bureau of Statistics (PBS). The PBS, which falls under the administrative control of the Ministry of Planning, conducted the survey from September 2024 to June 2025. The survey report indicates that the average monthly household income has increased significantly over the past six years. But urban households recorded higher income levels than rural households, rising from Rs53,000 to Rs96,767. The overall average income increased from Rs41,545 to Rs82,179 in six years, an average of 16.3% per year. But there are also large income disparities. In the last financial year, the poorest quintile earned Rs 41,851 per month, compared to Rs 139,317 for the richest 20%. Compared to a 16% increase in monthly income, expenses increased by a fifth during this period, according to the report. The average monthly consumption expenditure increased from Rs37,159 to Rs79,150, an average increase of 19% per year. Expenses
"The data reveals a clear concentration of spending in essential categories, reflecting current economic pressures, changing consumer behaviors and changing household priorities." the investigation said. Compared to the 2019 survey, overall household consumption in the last fiscal year increased, reflecting the rising cost of living, changing consumption priorities and improved access to goods and services. The data showed that households spent on average 63% of their total expenditure on just two functions: food and housing with electricity and gas. The data further showed that household expenditure is highest on food at 37%, followed by housing, electricity and gas expenditure at 26%, reflecting the rising cost of basic foods and utilities, according to the survey. Pakistanis have faced multiple challenges in recent years, including record double-digit inflation, unprecedented currency devaluation that caused imported inflation, and harsh conditions of IMF programs that mainly burden middle-income groups. The survey showed that spending on food and housing was higher than in 2019, which also reinforced the adverse effects of double-digit inflation and the results of the conditions set by the IMF were reflected in higher taxes and higher energy prices. Within the food group, spending on milk was highest at 22%, followed by 12% for wheat, 9% for wheat and 6% for cooking oil. After spending 63% on just two items, there was little left to spend on mind development and a healthy body. Combined household spending on education, health and leisure remained at just 7% in 2024-25, the survey found. A drop in spending is recorded for education, only 2.5%, health 3.4% and leisure 1.1%, indicates the official report. The data further revealed that education spending has almost halved compared to six years ago, while health spending has remained stable. "generally stable". Spending on clothing has also declined. The survey indicates that the largest increase was recorded in spending on housing, electricity and gas, followed by 6.6% for restaurants and 6.3% for clothing. Spending on restaurants was more than double that on education. The higher ratio of restaurant spending is among higher income groups.
