The Household Integrated Economic Survey 2024–25 shows that household spending in Pakistan is increasingly dominated by food and housing, with nearly two out of every three rupees now going toward these essential needs, according to Federal Minister for Planning Ahsan Iqbal.
Rising inflation, living costs, and currency depreciation have pushed expenses to grow faster than incomes over the past six years.
The survey indicates that households are relying more on foreign remittances and informal financial assistance. Remittances have risen from less than 5% to almost 8% of total household income, while informal gifts and aid have doubled to 4.6%. Rural households are particularly dependent on these external sources, which have roughly doubled over the last six years.
Average monthly income across Pakistan increased from Rs. 41,545 to Rs. 82,179, with urban households earning more than rural ones. Meanwhile, household expenditures grew from Rs. 37,159 to Rs. 79,150, highlighting that spending is rising faster than earnings. The income gap remains wide, with the poorest 20% earning Rs. 41,851 per month compared to Rs. 139,317 for the richest 20%.
Food alone accounts for 37% of household spending, primarily on milk, wheat, sugar, and cooking oil. Housing, electricity, and gas make up 26% of expenses, while areas like education (2.5%), health (3.4%), and recreation (1.1%) occupy much smaller portions of budgets. The survey reflects shifting priorities as households focus on essential items under economic pressure.
Economists note that double-digit inflation, currency devaluation, and IMF policy conditions are squeezing middle-income families. The increased reliance on remittances and informal support points to shrinking domestic income sources and changing consumption patterns, particularly for essential needs.
This survey underscores the growing financial strain on households in Pakistan and the urgent need for policies to ease living costs and support essential spending.
