Farooq Awan

Pakistan’s average household income has almost doubled over the past five years, rising to Rs82,179 per month in 2024–25 from Rs41,545 in 2018–19, reflecting a significant improvement in living standards across the country, according to the latest Household Integrated Economic Survey (HIES).

The survey, conducted by the Pakistan Bureau of Statistics, shows that a nearly 98 percent increase in nominal household income has been recorded across both urban and rural areas, indicating broad-based income growth rather than gains limited to specific regions or income groups. The rise in income has been accompanied by a noticeable expansion in household consumption, highlighting improved purchasing capacity among Pakistani households.

Average monthly household consumption increased from Rs37,159 in 2018–19 to Rs79,150 in 2024–25, representing a 113 percent rise over the period. The data show that households are spending more on essential and non-essential categories, including food, housing, energy, transport, and services, indicating gradual improvements in living conditions.

The survey findings indicate that income growth has translated into higher spending on better-quality food, improved housing conditions, and greater access to basic amenities. While food continues to account for a significant share of household expenditure, a growing portion of spending is now directed toward non-food items, suggesting a gradual shift in consumption patterns as purchasing power improves.

According to the HIES data, income growth has been observed across all income groups, with higher-income households registering larger absolute gains while lower-income households also experiencing meaningful increases. This pattern reflects a broad-based rise in earnings rather than growth confined to a narrow segment of society.

The survey also highlights that improved income levels have coincided with wider access to services such as electricity, clean water, and communication facilities, contributing to enhanced living standards. Increased household spending on education, health, and utilities further underscores the link between rising incomes and quality of life improvements.

Conducted as Pakistan’s first fully digital household survey, the HIES 2024–25 covered approximately 32,000 households nationwide and provides a comprehensive snapshot of income and consumption trends. The survey plays a central role in guiding policy formulation, poverty assessment, and development planning.

The latest findings suggest that despite economic challenges over recent years, household incomes have shown notable resilience, supporting gradual improvements in living standards and offering important insights for future economic and social planning in the country.

Credit: INP-WealthPk