Pakistan continues to grapple with deeply rooted income and wealth inequality, with limited progress made over the past decade, according to the World Inequality Report 2026 released by the World Inequality Lab (WIL). The findings place Pakistan among countries where economic disparities remain structurally entrenched, with gains heavily skewed toward the top income and wealth groups.
The report shows that the top 10 percent of earners in Pakistan capture 42 percent of total national income, while the bottom 50 percent receive just 19 percent. This uneven distribution highlights a persistent imbalance in income sharing, despite years of economic reforms and policy adjustments. According to WIL, inequality in Pakistan has remained broadly unchanged over the last ten years, indicating limited success in narrowing income gaps.
Wealth concentration is even more pronounced. The report notes that the richest 10 percent of Pakistanis hold 59 percent of total wealth, while the top 1 percent alone account for 24 percent. This level of concentration reflects the accumulation of assets among a small elite, reinforcing structural advantages that limit upward mobility for the majority of the population.
On average, Pakistan’s income per capita stands at approximately 4,200 euros in purchasing power parity terms, while average wealth per adult is estimated at 15,700 euros. These averages, however, mask significant disparities across income groups, as a substantial share of the population remains far below these levels.
The report highlights a marginal improvement in income inequality between 2014 and 2024, with the income gap between the top 10 percent and the bottom 50 percent narrowing slightly from 22.0 to 21.4. However, WIL describes this shift as minimal, noting that it does little to alter the overall inequality landscape in the country.
Gender disparities remain a significant concern. Female labour force participation declined from 9.8 percent to 8.5 percent over the period under review, pointing to worsening inclusion of women in economic activity. The report underscores that low and declining female participation further compounds inequality, limiting household incomes and broader economic productivity.
The findings align with broader concerns highlighted in other international assessments, including United Nations reports that have pointed to economic privileges enjoyed by powerful groups in Pakistan. Together, these indicators suggest that income, wealth and opportunity remain highly concentrated, with limited redistribution toward lower-income groups.
Beyond Pakistan, the World Inequality Report 2026 paints a stark picture of global inequality. According to the report, inequality remains extremely high worldwide. The top 10 percent of global income earners collectively earn more than the remaining 90 percent of the population, while the poorest half of humanity captures less than 10 percent of total global income.
Global wealth inequality is even more severe. The top 10 percent of the world’s population owns nearly three-quarters of total global wealth, while the bottom half holds just 2 percent. The report further notes that the wealthiest 0.001 percent, fewer than 60,000 individuals globally, control more wealth than half of the world’s population combined.
This concentration has intensified over time. The share of global wealth held by this ultra-elite group has risen from around 4 percent in 1995 to more than 6 percent today, underscoring what WIL describes as accelerating inequality. Since the 1990s, the wealth of billionaires and centi-millionaires has grown at an average annual rate of around 8 percent, nearly double the growth rate experienced by the bottom half of the global population.
In contrast, income and wealth gains among lower-income groups have been modest, often overshadowed by the rapid accumulation at the top. The report concludes that this imbalance has resulted in a global economic system where a small minority wields unprecedented financial power, while billions of people remain excluded from basic economic security.
For Pakistan, the findings highlight the scale of the challenge ahead. With income and wealth remaining highly concentrated and gender disparities persisting, the report suggests that meaningful reductions in inequality will require sustained structural reforms, broader inclusion in the labour market, and policies aimed at expanding economic opportunities beyond the country’s top income groups.
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