Average Income in Pakistan

Average Income in Pakistan
Average Income in Pakistan

Average Income in Pakistan

Average income is a crucial indicator of the economic well-being of a country. It reflects the amount of money the population earns on average and measures the standard of living. In Pakistan, the average income has been a topic of discussion for a long time, and it is essential to understand its current state and the factors affecting it.

Pakistan is a developing country with a population of over 200 million. Its economy is primarily agriculture-based, with the manufacturing and service sectors contributing significantly. According to the latest statistics, the average income in Pakistan is around $1,500 per year, which is lower than that of neighboring countries like India and Bangladesh. The per capita income in Pakistan has been stagnant for the past few years, and the economic growth rate has been around 3-4%.

Pakistan Average Monthly Income: Household | Economic Indicators | CEIC

Factors Affecting Average Income in Pakistan

Several factors affect the average income in Pakistan, including education and literacy rates, employment opportunities, inflation, and economic policies. The literacy rate in Pakistan is around 60%, which is lower than in other developing countries. A lack of education and skills leads to low-paying jobs and limited growth opportunities. The unemployment opportunities are also high, contributing to low average income. Inflation and the cost of living are also significant factors that affect the population’s purchasing power. The economic policies and governance of the country also play a crucial role in income distribution and overall economic growth.

  1. Unemployment is a major issue in Pakistan, particularly among young people. According to the Pakistan Bureau of Statistics, the country’s unemployment rate was 5.7% in 2020. Still, this figure will likely be underestimated due to the high number of people working in informal or unregistered jobs.
  2. Education: Education is an essential factor in employment in Pakistan. The country has a large, young population and a high demand for skilled workers in many fields. However, many people in Pakistan lack access to quality education, particularly in rural areas, which can limit their employment prospects.
  3. Women in the workforce: Women face significant barriers to employment in Pakistan, particularly in male-dominated fields such as engineering and technology. Pakistan’s female labor force participation rate is around 22%, one of the world’s lowest rates.
  4. Informal sector: The informal sector is a significant source of employment in Pakistan, particularly in urban areas. Many people work in everyday jobs such as street vending, domestic work, and small-scale manufacturing, often without legal protections or access to social security.
  5. Government jobs: Government jobs are highly sought after in Pakistan, offering job security, benefits, and a pension. However, competition for government jobs is fierce, and corruption and nepotism can be significant barriers to entry.

Distribution of Income in Different Sectors

The agriculture sector is the largest employer in Pakistan, with around 40% of the population employed in this sector. However, it is also the lowest-paid sector, with an average annual income of about $700—the yearly manufacturing sector is the second-largest employer, with about 20% of the population employed in this sector. The average income in this sector is around $1,500 per year. The service sector is the highest-paying sector, with an average annual income of around $2,500. However, it only employs about 10% of the population.

What are the most common professions in Pakistan?

The most common professions in Pakistan vary depending on the region and the level of development of each area, but some of the most common jobs in the country include:

  1. Agriculture and farming: Agriculture is the backbone of Pakistan’s economy, and many people in rural areas work in farming and agriculture-related industries.
  2. Textile industry: Pakistan is one of the largest textile producers in the world, and the textile industry is a significant employer in the country.
  3. Construction: With a growing population and increasing urbanization, Pakistan’s construction industry is also a significant employer.
  4. Healthcare: The healthcare sector in Pakistan is growing, and there are many opportunities for doctors, nurses, and other healthcare professionals.
  5. Education: As the country’s population grows and literacy rates improve, the demand for teachers and education professionals also increases
  6. Information technology: Pakistan has a growing IT sector, and there are many opportunities for software developers, programmers, and other IT professionals.
  7. Retail and sales: Retail and sales are common professions in Pakistan, with many people working in shops, markets, and other sales-related industries.
  8. Transportation: With a large population and a growing economy, there is a high demand for transportation services in Pakistan, and many people work as drivers, mechanics, and other transportation-related professionals.


What is the minimum wage in Pakistan?

The minimum wage in Pakistan varies from province to province and sector to sector. The federal government has set the minimum salary for unskilled workers at Rs. 17,500 per month.

How does the gender pay gap affect average income in Pakistan?

The gender pay gap is prevalent in Pakistan, with women earning less than men for the same job. This affects the average income in Pakistan, as a significant portion of the population is female. Addressing this gap is crucial to improving the overall average income by enhancing the country’s overall average income calculation of average income in Pakistan.

The informal sector, which includes small businesses and self-employed individuals, is prevalent in Pakistan. However, their income is not recorded in official statistics, which affects the country’s average income calculation.

How do taxes affect the average income in Pakistan?

Taxes reduce individuals’ disposable income, affecting the average income in Pakistan. However, taxes are necessary to fund government programs and services that benefit the population.

What measures can be taken to improve the average income in Pakistan?

Improving education and increasing employment opportunities in different sectors can help improve the average income in Pakistan. The government can also introduce policies that promote economic growth and reduce inflation. Addressing the gender pay gap and the informal sector can also help calculate the average income in Pakistan.


In conclusion, Pakistan’s average income is lower than other developing countries. The factors affecting it include education and literacy rates, employment opportunities, inflation, and economic policies. The income distribution is skewed towards the service sector, while the agriculture sector, which employs the most significant portion of the population, is the lowest-paying. To improve the average income in Pakistan, the government must focus on improving education and increasing employment opportunities in different sectors.

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