Pakistan encapsulates this troubling trend. Here, the wealthiest 10% control 42% of national income. This disparity is the basis of the poverty trap that is also stifling the country’s potential. The report highlights that Pakistan’s public investment in education is among the lowest in Asia — less than 2% of GDP — effectively denying millions a pathway out of poverty. Meanwhile, our tax system is heavily reliant on indirect taxes, which disproportionately burden the poor while the wealthiest often avoid their fair share.
Compounding this economic injustice is the climate crisis. Top Oxfam officials noted that Pakistan’s vulnerability to floods and other climate disasters places the heaviest burden on low-income groups who did the least to create the problem, while the elite continue to hoard wealth and influence. It is also worth noting that while the government often mentions how Pakistan is a minor contributor to global warming but a major victim, at the national level, the elites who profit from polluting industries and dangerous farming practices are similarly the ones responsible for most of the harm, but are also usually the recipients of the most government support when disasters do happen.
The report also warns that the erosion of civic freedoms and exclusion from digital technologies are deepening the divide, fuelling unrest, especially among disillusioned youth. Without structural reforms, such as progressive taxation, more public spending on health and education, and equitable climate policies, rising inequality will undermine long-term economic stability and social cohesion across the region.