The digitally administered Household Integrated Economic Survey (HIES) FY25 offers a stark lens into Pakistan’s deepening public discontent — and the risks and possibilities embedded within it. A population that is increasingly informed and connected, yet trapped in economic stagnation, provides fertile ground for populism, organised crime, and extremist networks. At the same time, with timely and credible policy reform, this very awareness and connectivity could be harnessed to accelerate inclusive growth.
Near-universal digital access and rapid digitisation have dismantled the long-held belief that deprivation is inevitable. Constant exposure to higher living standards online has fuelled aspirations and sharpened awareness of income inequality and opportunity gaps. While the drive for upward mobility is powerful, the absence of clear, legitimate pathways for personal and professional advancement pushes many — particularly the young — towards shortcuts, eroding ethical boundaries and social trust.
Yet the latest HIES reveals little improvement in core social and economic indicators since FY19. Literacy has inched up only marginally, from 60pc to 63pc, while the proportion of out-of-school children aged five to 16 has declined from 30pc to just 28pc.
Health outcomes show similarly modest gains. Expanded immunisation coverage, improved maternal care, and greater access to skilled birth attendants have helped reduce neonatal and infant mortality, but rates remain troublingly high at 35 and 47 per thousand live births, respectively. Improvements in housing quality, piped water, and sanitation have been limited, while male employment has declined.
Pakistan is now among the region’s most digitally connected societies, yet social progress has been slow — and male employment has fallen.
By contrast, the survey highlights a dramatic expansion in digital connectivity. Household internet access has surged from 34pc in FY19 to 70pc in FY25. Mobile phone ownership now covers 96pc of households, and 98pc of urban households have internet access. Individual internet use has risen sharply, from 17pc to 57pc over the same period.
This growing connectivity has intensified perceptions of relative deprivation. “Better-informed individuals can clearly see the gap between their living standards and those of the wealthy,” an analyst observed privately. “They increasingly recognise that their circumstances are not simply the result of personal failure but of deeper structural problems — political patronage, unequal systems, stagnant wages, limited access to affordable education, and discrimination. This awareness is replacing passive acceptance with resentment.”
The anxiety is no longer confined to the margins. Reflecting on Bangladesh’s 2024 youth uprising, a leading industrialist admitted: “Despite private security and state-of-the-art safeguards at my home and factories, I don’t feel safe. I fear the anger of a vast pool of frustrated young people turning against those seen as successful. I don’t believe the state could shield the elite if mob fury erupts. I’ve already moved my family abroad and am exploring shifting part of my business to the West.”
Another prominent businessman echoed these concerns, warning that the risk of public backlash sliding into chaos is real. He urged the government to stabilise the economy and pursue a more inclusive growth model, while calling on the elite to curb conspicuous consumption and businesses to abandon wage suppression. “Wages form a small share of costs and are already far below global norms,” he said. “Respecting workers’ right to a dignified living is no longer optional.”
Questions have also been raised about the credibility of the HIES itself. An Islamabad-based economist asked whether a sample survey could truly capture on-ground realities. The Pakistan Bureau of Statistics (PBS), which conducted the survey across 2,343 enumeration blocks and 32,785 households, has defended its methodology.
PBS Chief Statistician Dr Naeem uz Zafar noted that high mobile penetration figures align with data from the Pakistan Telecommunication Authority. He acknowledged the puzzling decline in male employment, partly reflected in the rise of gig work captured in the Labour Force Survey FY25. While gains in enrolment appear limited, he pointed to improved gender parity and increased female participation in education as positive signs, alongside better family planning and maternal and child health outcomes.
Although an official cabinet response was not available by the deadline, Dr Nadeem Javed, Vice Chancellor of the Pakistan Institute of Development Economics, described the survey as revealing a “striking paradox”. Pakistan has achieved near-universal mobile ownership and about 70pc internet access, yet social indicators have stagnated and male employment has fallen.
He attributed this disconnect to severe household economic stress in recent years. While average household incomes rose by roughly 97pc, expenditures surged by about 133pc, driven largely by higher electricity, gas, and healthcare costs. This squeeze has forced households to cut back on food, education, and small business investment.
“Connectivity alone cannot offset these pressures,” Dr Javed argued. “Without digital jobs, online commerce, and productive use of technology, access remains a convenience rather than a livelihood.” As the economy stabilises, he said, policy must shift from simply expanding access to creating opportunity — linking connectivity with skills development, digital work, e-commerce, and small enterprise growth to convert reach into productivity, higher incomes, and genuine human development.