As of February 2026, Pakistan's economy is facing escalating challenges, including a soaring poverty rate of 29%, the highest in over a decade, impacting nearly 70 million people. The Planning Ministry's report indicates a 12% decline in real household incomes and a Gini coefficient of 32.7, marking the highest income inequality in 27 years. Rural poverty has surged to 36.2%, while urban poverty stands at 17.4%. These issues are compounded by high inflation, weak economic growth, and the impacts of IMF-mandated reforms, which have disproportionately affected vulnerable populations (Dawn, February 22, 2026). Recent developments suggest that the economic situation could worsen due to potential geopolitical tensions, particularly a possible US-Iran conflict. Analysts warn that if oil prices rise above $90 per barrel, Pakistan's import bill could increase by $5 billion annually, leading to inflation rates exceeding 12-15% and further depreciation of the rupee (Nukta Latest, February 23, 2026). Additionally, a decline in remittances, which contribute nearly $30 billion annually, could exacerbate the current account deficit by $10-12 billion if regional instability affects employment and wage flows.