Economic Inequality: Pakistan’s Persistent Divide

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Editorial

Inequality in Pakistan remains deeply entrenched, with the top 10% of earners capturing 42% of total income, while the bottom 50% receive only 19%, according to the World Inequality Report 2026. Wealth concentration is even more extreme, with the richest 10% holding 59% of total wealth, and the top 1% alone controlling 24%. The report highlights that income gaps have seen only minor shifts over the past decade, indicating slow progress toward a more equitable economy.

Per capita income in Pakistan stands at roughly 4,200 euros (PPP), while average wealth is 15,700 euros (PPP). Gender disparities remain stark, with female labour participation declining from 9.8% to 8.5% over the last decade. These figures underscore the persistent challenges of inclusion, fair opportunity, and equitable growth.

Globally, the inequality picture is equally grim. The top 10% of income earners capture more than the remaining 90%, and the richest 0.001%, fewer than 60,000 individuals, now hold more wealth than half of humanity combined. Wealth growth for billionaires and centi-millionaires continues at roughly 8% annually, nearly double the growth experienced by the poorest half of the population. The result is a world where extraordinary accumulation at the top overshadows the modest gains of the majority, leaving billions excluded from basic economic stability.

For Pakistan, these findings point to an urgent need for policy interventions that address income and wealth concentration, enhance female labour participation, and foster equitable economic growth. Without structural reforms in taxation, social protection, and investment in human capital, inequality will continue to undermine social cohesion and economic resilience, reinforcing a pattern that mirrors global disparities.

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