Pakistan’s per capita income, rising to $1,824 in FY2024–25, is most likely to cross the psychological barrier of $2,000 in the next fiscal year.
Each Pakistani’s share in GDP marked a significant recovery after two turbulent years marred by economic instability, currency devaluation, and soaring inflation. The government now projects this key measure of average individual income to cross $2,000 in FY2025–26, signalling cautious optimism in the face of persistent structural challenges.
According to the Economic Survey 2024–25, per capita income in dollar terms grew by 9.7 per cent, up from $1,662 the previous year. In rupee terms, it increased from Rs 470,258 to Rs 509,174, driven by subdued inflation, stable exchange rates, and strong inflows of remittances and foreign earnings.
“The increase is more a reflection of statistical stability than broad-based prosperity,” said an official familiar with the preparation of national accounts.
The boost comes after two consecutive years of stagnation and decline. In FY2022–23, per capita income had fallen to $1,551 from a high of $1,766 in FY2021–22 amid a collapsing rupee and fiscal uncertainty under shifting IMF agreements.
How Pakistan compares in the region
Despite the rebound, Pakistan continues to trail its South Asian peers in income metrics: India’s per capita income crossed $2,700 in FY2024 (IMF estimate), buoyed by robust digital and manufacturing-led growth.
Bangladesh, once behind, is now estimated at $2,150, maintaining a lead for the third straight year.
Sri Lanka, after a severe crisis, recovered to around $3,900, although it remains under debt distress.
Pakistan’s projected $2,016 per capita income for FY2025–26 would narrow the gap slightly with Bangladesh but remain well below India and Sri Lanka — underscoring the structural reforms still needed to catch up.
Consumers still under pressure
Despite the improved headline figure, many households are still grappling with the high cost of living. Monthly inflation hit a 60-year low of 0.3 per cent in April 2025, but food and utility prices remain sticky at higher levels. Salaried and low-income segments have seen little to no real income gain in recent years.
“The disconnect between macro data and street-level hardship persists. A statistical rebound doesn’t fix affordability,” said economist Dr Hafiz Pasha.
Looking ahead: Income to cross $2,000?
In budget documents and planning estimates for FY2025–26, the government has projected that per capita income will reach $2,016 — the highest in Pakistan’s history if achieved.
This outlook is built on assumptions of modest economic growth, continued currency stability, and stronger tax and remittance flows. However, risks such as global commodity price shocks, external debt servicing, and regional instability remain relevant headwinds.
Summary Table
Fiscal Year Per Capita Income (USD) Change YoY
2020–21 $1,677 —
2021–22 $1,766 +5.3 per cent
2022–23 $1,551 −12.2 per cent
2023–24 $1,662 +7.1 per cent
2024–25 $1,824 +9.7 per cent
2025–26* $2,016 (projected) +10.5 per cent
Bottom Line
Pakistan’s per capita income has rebounded in FY2024–25 and may cross the $2,000 threshold in the next fiscal year — but for many citizens, the lived experience of economic relief remains elusive. As Budget 2025–26 is debated and passed in Parliament, the challenge is not just meeting statistical targets, but ensuring inclusive, equitable, and inflation-adjusted income growth that can close the gap with regional peers and relieve ordinary Pakistanis of economic hardship.
