Islamabad — A new Oxfam report has delivered a jarring wake-up call: the richest 10 percent of Pakistan’s population now control a staggering 42 percent of the country’s national income, leaving the rest to grapple with rising poverty, climate shocks, and digital exclusion.
Regional Trends Reflect Widening Disparity
The report, An Unequal Future: Asia’s Struggle for Justice in a Warming, Wired World, warns that Pakistan is sliding deeper into a three-pronged crisis — economic disparity, environmental vulnerability, and technological disconnect. The country’s inequality mirrors a broader regional trend, where elite wealth capture ranges from 60 to 77 percent across Asia, while the poorest half scrape by with just 12 to 15 percent.
Oxfam Calls Out Wealth Hoarding and Tax Evasion
Oxfam Executive Director Amitabh Behar didn’t mince words: “Pakistan is among the hardest hit by floods and climate shocks, yet the richest continue to hoard wealth and dodge taxes, leaving ordinary people to face the worst of the destruction.”
Tax System Favors Elite, Burdens Majority
The report slams Pakistan’s tax structure as regressive and elite-friendly. With a tax-to-GDP ratio stuck at 10 percent — one of the lowest in Asia — the government struggles to fund basic services. Dr. Abid Aman Burki of LUMS said the system “benefits the powerful elite,” relying heavily on indirect taxes that squeeze low- and middle-income households.
Education Spending Remains Critically Low
Education spending is another red flag. Pakistan invests less than 2 percent of its GDP in education, placing it near the bottom of regional rankings. Oxfam warns that without urgent reforms, the development gap will continue to widen, locking millions out of opportunity.
Climate Vulnerability Intensifies Fiscal Pressure
Climate vulnerability adds fuel to the fire. Pakistan needs billions annually for adaptation, yet most external support arrives as loans, not grants — deepening fiscal pressure. The country’s exposure to floods, droughts, and heatwaves is rising, but resilience planning remains underfunded and fragmented.
Digital Divide Leaves Millions Disconnected
The digital divide is equally stark. Just 49 percent of rural residents across Asia have internet access, compared to 83 percent in urban areas. In Pakistan, women face additional barriers — affordability, safety, and unpaid care work — keeping millions offline and disconnected from education, jobs, and civic life.
Oxfam Urges Urgent Reforms
Oxfam’s report concludes with a warning: unless Pakistan overhauls its tax system, boosts social spending, and invests in climate and digital infrastructure, inequality will harden into a permanent fault line — dividing a privileged few from a struggling majority.
The message is clear: the clock is ticking, and the cost of inaction is rising.
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