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A new Oxfam assessment has revealed that in Pakistan, the richest 10 per cent hold 42pc of the national income, a share lower than many major Asian economies but still high enough to deepen structural inequality and limit progress toward a fair and sustainable society. The study highlights uneven economic growth across Asia influenced by widening wealth gaps, climate pressures and digital exclusion.
The report, titled An Unequal Future: Asia’s Struggle for Justice in a Warming, Wired World, paints a troubling picture. Across Asia, the wealthiest 10pc secure 60 to 77pc of national income, while the poorest half of the population receive only 12 to 15pc. The top 1pc own nearly half of all wealth. Over the last decade, the fortunes of Asian billionaires have multiplied, while the income share of the poorest 50pc in countries such as China, India, Indonesia and Korea has declined.
According to the report, the income share of the poorest half has fallen in most Asian nations except Bangladesh, Cambodia, Malaysia, Myanmar, Nepal, Pakistan, the Philippines, Sri Lanka, Thailand, Timor-Leste and Vietnam. Even in these countries, the increase is limited to around 1pc, with a few exceptions.
Dr Abid Aman Burki, who teaches poverty and inequality at the Lahore University of Management Sciences (LUMS), called the report a meaningful attempt to spotlight income and wealth disparities in Asia. Amitabh Behar, Executive Director of Oxfam International, said the findings have direct implications for Pakistan. He stated that Pakistan experiences severe climate impacts, yet wealthy groups continue to accumulate assets and avoid taxes, leaving ordinary citizens exposed to the worst effects of disasters.
Experts Link Inequality to Economic Model
Dr Burki attributed rising inequality in Pakistan to an economic structure that caters to elites and relies heavily on indirect taxation, which places greater pressure on low and middle income households. With national spending focused on debt servicing, defence and subsidies for influential groups, he noted that insufficient funds remain for health care, education and social protection.
Oxfam’s data supports this claim. The report shows that in 2022, public education investment reached 8pc of GDP in Bhutan and Kyrgyzstan, but stayed below 2pc of GDP in Papua New Guinea, Pakistan, Cambodia, Laos and Sri Lanka. It also highlights how indirect taxes weigh more heavily on poor households. In 2022, the tax-to-GDP ratio stood at or above 30pc in Japan, Korea and New Zealand, compared to roughly 10pc in Laos and Pakistan.
While countries like New Zealand, Australia, Korea and Japan follow moderate value added tax regimes with robust social spending, others, including Afghanistan, Bangladesh, Bhutan, Malaysia, Indonesia, Pakistan, the Philippines, Thailand and Vietnam, continue depending heavily on indirect taxes. As a result, the burden remains tilted toward lower income groups, the report states.
Climate Crisis and Digital Divide
Beyond taxation and spending, the report stresses that deepening inequality cannot be curbed without addressing the climate emergency and digital divide. Asia is described by the World Meteorological Organisation as the most disaster affected region globally, with more than 1,800 extreme events in the past decade causing over 150,000 deaths and impacting more than 1.2 billion people. Five of the world’s most climate vulnerable countries, including Pakistan, are home to over 500 million people.
Asia requires nearly 1.11 trillion dollars a year to prepare for and respond to climate shocks, but receives only 333 billion dollars, much of which comes as loans. Behar said richer nations continue to fall short of their responsibility to fund losses and damage in countries such as Pakistan ahead of COP30.
The report also highlights widening digital inequality across Asia. In the Asia-Pacific region, 83pc of urban residents have internet access, compared to only 49pc in rural areas. Women are particularly affected. Of the 885 million women in low and middle income countries who do not use mobile internet, 330 million live in South Asia.
Barriers including affordability issues, low digital skills, safety concerns and unpaid household work restrict women’s digital access and prevent them from participating in technology driven job sectors. The divide further adds pressure to countries already struggling with unequal distribution of national income.
