Essay on Poverty in Pakistan with Outline | Causes and Solutions

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Outline of Essay on Poverty in Pakistan for F.A, FSC, 2nd Year, B.A & BSC

  • Introduction with the Poverty in Pakistan.
  • Reasons behind this problem.
  • Population explosion
  • The economic system is based on feudalism
  • unequal distribution of wealth
  • Politicians of Pakistan
  • Solutions to deal with this problem.

Poverty in Pakistan Essay

Pakistan is a poor and underdeveloped country. Most of its population lives in entirely adverse circumstances. Some reports reveal that more than forty percent population of Pakistan live below the line of poverty. The average income of a poor Pakistani is less than two dollars. A large number of people in our country do not have a proper place to live. This miserable condition has given birth to a large number of beggars and needy people, who live on the charity of the rich people. The economic condition of an average individual is very pathetic. Poverty, hunger and unemployment afflict a large section of the population. The causes of poverty’are quite obvious and known.

Firstly: We are facing a population explosion. There are more mouths to feed than there are hands to earn. One member of the family has to feed and support a large family. His income is limited. He cannot afford to maintain a large family. He works hard and consequently, he falls ill and dies. Then his wife steps in, work in village field or city homes to bring up her children. This cycle of poverty goes on. A poor remains poor the whole of his life. The main cause of poverty in Pakistan lies in the difference between the resources and the population increase.

Secondly: Most of the people in Pakistan are uneducated. They are ill-equipped to lead a good life. They do not know the modern methods of farming. They are ignorant to better ways of earning money in the mills and factories. With poor knowledge of life, they cannot increase production in mills and factories. Modern machinery is mostly computerized. An uneducated person cannot understand and operate the computer. How can he add to his income? The result is that he remains poor till the last moment of his life. It is very sad that rulers do not educate the workers. The workers do not get a chance to earn more money.

Thirdly: Our economic system is based on feudalism. A big landlord keeps the small farmers and workers under his political slavery. The “Haries” in Sindh, for example, have tried to get freedom from the feudal lords but who avail. In Baluchistan, there exists the “Sardari system”. This system does not allow the children of a poor farmer to get the education and find good jobs. Higher education is open only to the children of big landlords and sardars. in Punjab and NWFP the same condition exists.The economic condition of the small farmers and workers cannot become better in the presence of feudal lords i.

Fourthly: Pakistan is a country where there is no social, cultural and economic justice. The rich people in Pakistan are becoming mere rich, while the poor are becoming more poor. The economic disparity between the rich and the poor has eaten the very vitals of society.

Fifthly: Poverty in Pakistan exists due to Scarcity of jobs in the public and government sector. Our rulers are not responsible, dedicated and missionary. They failed to build new dams, a network of industry and roads in the country. The shortage of electricity and gas has resulted in the lock up of mills and factories. New factories were not set up in the past. The result is that our uneducated worker remains unemployed. The educated people have degrees, but they do not have opportunities to get a job. Many countries in the world have solved this problem. Pakistan too can solve the problem by adopting the following measures.

The rulers of Pakistan must discard their lavish way of living. They must be “one” with their people. They must lead a life of a common and hardworking person. This will go a long way to bridge. over the disparity between a rich and poor person. The population explosion must be controlled. People should be educated and guided to produce a small number of children. More industries, mills and factories should be set up to provide jobs to the workers and Small farmers.

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Poverty in Pakistan: Impacts, Causes, and Way Forwards

Poverty-in-Pakistan-Impacts-Causes-and-Way-Forwards

  • March 26, 2022
  • Current Affairs , Pakistan's Domestic Affairs , PMS
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Poverty in Pakistan: Impacts, Causes, and Way Forwards | Best for CSS, PMS Current Affairs, Pakistan Affairs, and Essay Papers

The answer is solved by Syed Muhammad Hamza on the given pattern, which  Sir Syed Kazim Ali  teaches to his students, who consistently score the maximum because of their attempting the questions.

Introduction:

Supplementing and, in some ways, overshadowing the other socio-economic malfunctions of society, poverty in Pakistan is perhaps the most dreadful fact. Inept governance, high unemployment rate, substandard education system, and other factors have grasped Pakistan ever since its creation. However, the development of economic ventures, pragmatic economic policies, and political stability may strengthen the fragile economy of Pakistan. 

1- What is poverty?

2- Current situation

3- Impacts of poverty

  • Increasing terrorism 
  • Boosting the rate of unemployment
  • Declining Foreign Direct Investment (FDI)
  • Increasing child labour

4- Causes of poverty

  • The crisis of good governance
  • The political instability
  • The uneducated and unskilled segment of youth
  • The population explosion 

5- Way forward

  • To ensure a well-functioning of governance
  • To build an efficient and peaceful political environment 
  • To draw out schemes and reliefs packages for the poor people
  • To create new economic ventures 
  • To utilize man resources critically and effectively for the economic betterment of the state
  • To revive the education system 

6- Critical analysis

7- Conclusion

poverty in pakistan essay with headings

Answer to the Question

Introduction

Undoubtedly, poverty is the malice that destabilizes a state socially, economically, and politically. Like other underdeveloped countries, Pakistan is also suffering socio-economic declivity due to poverty. Moreover, it has led to many other social evils: corruption, unemployment, child labour, injustice, and terrorism. However, the deep study of Pakistan’s economic situation since its inception shows several factors behind the rise of poverty. The state’s political instability, a considerable chunk of the uneducated and unskilled population, the crisis of good governance, and unequal distribution of resources are a few factors contributing to poverty in Pakistan. Nevertheless, introducing pragmatic economic policies, restructuring the education system, creating working opportunities, reducing corruption, and sorting political and governance chaos may help pull the country out of the very malice. The following answer discusses the impacts and causes of poverty on the polity and the measures needed to alleviate poverty in Pakistan. 

Poverty is a condition in which a person or a household cannot meet their necessities, like food, clothing, shelter, and education. Usually, poverty is defined in terms of money, called income-based poverty. According to Syed Akbar Ali Zaidi, “ Traditionally, poverty is defined as some measure of monetary income considered adequate for subsistence .  However, income in monetary terms may not be an adequate measurement of living conditions of the poor population” . 

Compared to the days of inception, Pakistan has made notable progress in eradicating poverty in the last couple of decades. As per an estimate, by 2015, approximately 30 million people have pulled out the poverty, but covid-19 has reversed all the efforts made in the last 30 years. About ten million more people are expected to be added in nearly fifty million poor people. As per the Human Development Index 2020, Pakistan was ranked 154th among 189 countries. Despite many efforts and progress, Pakistan needs to take more measures to cure poverty. As per the statistics, about 40 per cent of Pakistan’s population lives below the poverty line and could hardly meet their necessities. Thus, poverty stands as the biggest challenge for Pakistan. 

Poverty, as a matter of fact, has distorted the socio-economic fabric of the state. Poverty and a poor administrative system have given rise to injustice and corruption. People deprived of the necessities of life become easily engaged in terrorist activities; hence, poverty has acted as a catalyst in spreading terrorism. Apart from the poor law and order situation, poverty has also added fuel to the fire of unemployment. Lack of Foreign Direct Investment has brought a decline in the country’s economic growth; consequently, the youth of the country find no economic opportunity. Moreover, poverty has also given rise to child labour. According to the Federal Bureau of Statistics and National Child Labour 2018-19, about twenty million children less than 14 years of age are working to meet their family economic needs. To conclude, poverty has an adverse ripple effect on the country’s socio-economic fabric.  

The number of factors explains the spike in poverty. For instance, the crisis of good governance has been the paramount reason amongst all the other factors. A huge chunk of Pakistan’s population is deprived of clean water, health, food, and education facilities. Moreover, political instability has blurred the country’s image. So that the quick shifts of powers between governments and dictators have shrugged the population’s confidence, the political stability of the polity has distant itself. In addition to political instability, the lack of skilled and educated youngsters has halted the economic progress of Pakistan. As per the report of UNESCO 2019, about 37 per cent of the youth of the country is out of school. Pakistan spends the least expenditure on the education system in its region, nearly 2.4 per cent of GDP in the fiscal year 2018-2019. Last, the explosion of population, becoming one of the prominent reasons for poverty, has immensely burdened the fragile economy of Pakistan. Pakistan ranks fifth amongst the most populated countries of the world. Thus, to combat the burgeoning poverty rate, Pakistan needs to plan critically. 

In response to the challenges aroused by poverty, Pakistan needs to come up with critical, pragmatic measures:

  • The state government must ensure the necessities of the population: health, food, and shelter are fulfilled. In addition, proper distribution of resources among the provinces should also be made practical.
  • A peaceful political environment is the need of Pakistan’s economy. The political leaders and religious personnel must work on bringing stable and pragmatic policies in the interest of Pakistan.
  • Different relief schemes may help poor people to meet their needs.

poverty in pakistan essay with headings

The proper function and distribution of packages, like the Ehsas Ration Programme, may help feed millions of poor people. 

Moreover, new economic ventures should be introduced to indulge the state’s youth in uplifting the country out of poverty. Pakistan stands among the sixth in the top overpopulated countries, but a proper and effective opportunity can be drawn out of this challenge. Pakistan can use its human resources to flourish in agriculture, construction, and IT to unburden its fragile economy. The most overpopulated country may combat poverty critically and successfully by bringing new economic opportunities. And the most important solution to poverty lies in the revival of the education system. Unfortunately, the education system of Pakistan is obsolete and obscure. By rejuvenating the system, the youth of Pakistan would surely be able to draw new trajectories to pull the country out of the crisis. Thus, the abovementioned suggestions would surely help in plucking the malice of poverty and many other social evils. 

It is high time for Pakistan to consider poverty seriously. By creating economic opportunities, Foreign Direct Investment (FDI) would surely get a boost. Consequently, the economic condition of the state would enhance. Similarly, Pakistan being a baby booster country, can enlighten its future by making its youth educated. As it is aptly said,  “Education is indispensable for the success of a state” . To sum up, the government of Pakistan needs to appoint competently and well-qualified economists to tackle the uprising challenges. And other stakeholders must take their responsibility equitably. 

Unfortunately, Pakistan has been suffering several challenges. Amongst them, poverty stands the most crucial. It has hampered the socio-economic fabric of the state and has also killed the creativity of many young and charming minds. Moreover, lacking food and other necessities have engulfed the dreams of many poor people. Thus, building economic opportunities and technical and educational institutions would surely help lift the helpless population. 

poverty in pakistan essay with headings

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Poverty eradication in Pakistan: Past, present, and future

Blog 12 Oct 2020 State and COVID-19

While the current government in Pakistan has taken a multi-dimensional approach and introduced some measures to eradicate poverty, along with specific COVID-19 emergency interventions, many challenges still remain. We lay out our thoughts below on whether Pakistan is on track to achieving SDG1 by 2030 , given that another 10 million are expected to move into poverty due to the pandemic.

Over the past two decades, Pakistan has made significant progress in fighting poverty, reducing it by more than half since 2000. As one of the first countries in the world to declare Sustainable Development Goals (SDGs) as part of its national development agenda and updating the national poverty line in 2016 [1] , Pakistan has remained committed to improving multi-dimensional poverty measures.

Progress in the last decade

As per the latest official figures , the poverty headcount ratio declined from 29.5% in 2013-14 to 24.3% in 2015-16. Of all 114 countries for which the World Bank measures poverty indices, Pakistan was amongst the top 15 that showed the largest annual average percentage point decline between 2000 and 2015.  Despite this, by 2015, around 50 million people still lived below the national poverty line. Since then, the pace of poverty reduction has slowed down. This is partly due to the macroeconomic crisis resulting from structural economic issues and the lack and inadequate implementation of pro-poor policies.

Measuring poverty

Lack of accurate and consistent poverty estimates has been a key hindrance in formulating effective pro-poor policies in Pakistan. The use of monetary poverty lines tied to currency conversion rates with differing purchasing power parities, along with the use of different methodologies has led to inconsistent measures. For instance, between 2010 and 2015, show a decline in poverty headcount while an independent policy think tank estimated that around 38% of the population was still living below the poverty line in 2015; which in absolute terms meant an additional 13 million people falling into poverty . Bureaucratic and political delays in regularly updating the National Socio-Economic Registry (NSER) survey has also led to issues in targeting (the last round of the NSER survey was carried out in 2010-11).

In 2016, the government tailored a widely used global poverty measure, the Multi-Dimensional Poverty Index (MPI), for Pakistan. The aim was to capture the three main deprivation indicators: education, health, and living standards. Based on 2017-18 estimates , 38.3% of the population was deprived in at least one of the three indicators - an improvement from previous years, largely from progress in sanitation and child mortality. However, deprivation resulting from a  lack of access to electricity increased.

COVID-19 and increased vulnerabilities

Vulnerabilities play a central role in perpetuating poverty as poor households lack necessary human, financial, and physical capital to withstand the negative impacts of sudden shocks. It is no surprise that COVID-19 is expected to be up to  10 times more deadly for the poor . A recent UNDP study of 70 countries, including Pakistan, estimated that COVID-19 may set poverty levels back by 9 years, with an additional 490 million people falling into multidimensional poverty.

Prior to COVID-19, Pakistan’s economy was already struggling with a fiscal crisis and undergoing an IMF-sponsored macroeconomic stabilisation programme. With one of the lowest human development indicators around, the government estimates that 56.6% of the population has now become socio-economically vulnerable due to COVID-19. As one of the youngest countries in the world, with nearly two-thirds of the population under the age of 30, a consistent GDP growth rate of 7% is required to absorb the young workforce. With a projected growth rate of only 2% post-pandemic, unemployment rates may rise drastically, perpetuating the cycle of poverty.

Despite a declining poverty rate over the past few years, the IMF has also projected a sharp reversal ahead, which may push almost 40% of Pakistanis below the national poverty line. The cost of the expected economic slowdown due to COVID-19 containment measures, invariably relying on some form of lockdown, will mostly be borne by the estimated 24.89 million daily wage earners, piece-rate workers, and self-employed in. These groups are more vulnerable to pandemic-induced poverty due to a lack of access to social protection programmes.

What didn’t work in the past

Pakistan has a long history of poverty reduction policies and interventions. However, the persistently high poverty levels reflect the inadequacy of these measures resulting mainly from a focus on static measures and limited outreach. Poverty reduction programmes account for just about 2% of GDP ; due to lack of coordination, inefficient implementation, and inadequate monitoring and evaluation, there is often duplication and fragmentation across these programmes.

Despite deep-rooted economic inequalities and the sheer number of people impacted, policymakers have largely steered clear of addressing the issue of inequality . It is estimated that 40% of all children born in abject poverty will remain in the lowest income quintile, another 40% will improve slightly from very poor to poor, while only 10% will be able to transition out during their lifetime [2] . Research also shows that while relatively high economic growth in 2001-04 was not pro-poor, the low growth period of 2005-10 saw better poverty indices. This indicates that policy interventions for the poor are not all the same; there is a need to have a more targeted approach for transitionary and inter-generational chronic poor.

What Pakistan has done right

Early indications point to the government’s commitment to poverty reduction, as it has pledged to  reduce poverty by 6 percentage points to 19% by 2023. Measures include increasing poverty alleviation expenditures and ensuring that vulnerable groups such as women, children, and people with disabilities receive needed aid.

One such measure is the integration of more than 134 fragmented and insufficiently managed social protection programmes, and prone to political manipulation, under ‘Ehsaas’. This is a new overarching programme launched in 2019, built on the framework developed under the Benazir Income Support Programme (BISP). BISP is one of South Asia’s largest cash transfer programmes and Pakistan’s flagship social protection initiative. Launched in 2008, BISP currently caters to 5.7 million ultra-poor families via unconditional cash transfers to women.

In response to COVID-19, the government quickly implemented the Ehsaas Emergency Program me, under which low-income households gained access to financial assistance through text messages. In the first phase of this programme, 12 million families were provided with a monthly stipend of 12,000 PKR ($72). More recently, the programme has been extended to include 17 million families, around half of the total population of Pakistan.

The government has also made efforts to de-politicise poverty measures . There is great optimism that under the current government, the NSER survey, which will cover at least 27 million households, will be completed by 2021 and enable smart poverty targeting.

Is Pakistan still on track to achieve SDG1?

Even before the pandemic, Pakistan was categorised as being ‘off track’ to halve multidimensional poverty by 2030, and less likely to achieve SDG1 with current interventions. This has largely been due to inadequate policy responses from successive governments, despite some good progress on poverty alleviation in the early 2000s. The current government, however, has taken some steps in the right direction. While there is growing consensus on the benefits of a rapid policy response, there has historically been a lack of focus on more long-term sustainable efforts.

There is increasing evidence, across South Asia, that an ‘income-mediated’ approach to SDG1 will have limited success and more ‘expenditure led’ policies are required.  Looking ahead, well-informed income and poverty projections can provide a blueprint for more proactive, targeted and sustainable policies, with a focus on alleviating extreme poverty.

[1] Research by Lahore University of Management Sciences (LUMS) in collaboration with Oxfam.

[2] Instead of using the Food Energy Intake (FEI) approach, a Cost of Basic Needs (CBN) approach is now employed

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Home — Essay Samples — Geography & Travel — Pakistan — Poverty in Pakistan: Challenges and Pathways to Alleviation

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Poverty in Pakistan: Challenges and Pathways to Alleviation

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Published: Jun 13, 2024

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Introduction, root causes of poverty in pakistan, impacts of poverty on pakistani society, strategies for alleviating poverty.

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Home > Books > Poverty, Inequality and Policy

Poverty and Its Alleviation: The Case of Pakistan

Submitted: 20 October 2016 Reviewed: 03 April 2017 Published: 04 October 2017

DOI: 10.5772/intechopen.68960

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Poverty, Inequality and Policy

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This chapter aims to look at the current status of poverty and existing social policies in Pakistan. Poverty is one of the concerns for the governments of almost all countries including Pakistan. There is a continuous research on the policy measurements by national and international organizations in Pakistan, which demonstrated the decline in poverty. The government has launched many social policies in the past three decades to help the nation in reducing the poverty. Apart from government, many national and international organizations have also contributed a lot in the effort of reducing the poverty. However, there is very little research available on the effectiveness of these social policies, and on the need of social policy areas in particular. Disparity among the urban and rural population is another important factor, which has been discussed in almost every research on poverty. Still, very few social policies in Pakistan are focusing on rural population. Therefore, the issue of social policy needs fresh exploration in the country, which is necessary to make new social policies that can benefit all citizens.

  • poverty alleviation
  • economic development
  • gender inequality
  • inclusive social policy
  • poverty trap

Author Information

Muhammad azeem ashraf *.

  • Faculty of Education, Beijing Normal University, China

*Address all correspondence to: [email protected]

1. Introduction

It is a concern of every government to respond to the necessities of equality legislation. Approaches, obstacles, and practices of judgment are some simple values that respond universally, rather than individually. Cultural and systemic change at policy and practice levels is very important to develop an inclusive culture [ 1 ]. Accordingly, developing a social policy does not provide the desired outcomes until it has been offered with the best environment and ground support, for these policies to be implemented. The notion of poverty is not new in Pakistan as many studies have been conducted at both national (Government of Pakistan; Pakistan Institute of Development Economics) and international institutions (World Bank; United Nations). Most of these studies used household surveys based on consumption model to calculate the severity of poverty at national and provincial levels.

In contexts of Pakistan, poverty has always been higher in rural than urban areas. Pakistan has shown a decline in the poverty during 1970s and 1980s, but the trend reversed in the 1990s. Poverty rose more sharply in the rural areas in the 1990s, and the incidence of rural poverty was significantly higher than urban poverty [ 2 ]. Inequality in both urban and rural areas also increased in Pakistan during the 1990s, which enhanced the negative impact on poverty. Although agriculture is the main activity in rural society, a significant percentage of the rural labor force, estimated at more than 40%, depends completely on nonfarm activities. The development of nonfarm activities appears to have been severely affected by low economic growth, weakening in public sector development expenditure, and lower worker remittances during the 1990s.

Social policies of some kind have been applied in Pakistan. It is their significance to additional social and human development, which tends to differ. However, social policies are often not conceptualized as social policies in the development context, but rather dealt with, in a broader concept of social development or in the context of poverty reduction strategies. The aim of this chapter is to examine what kind of social policies represent social benefits and what is their relation to social development. In the area of social policies, it is further concerned about social services, such as education and health services. Thus, this chapter examines the case of poverty in Pakistan, the government’s efforts for reducing poverty, and the need to improve the social policy structure in the country.

In this regard, institutions that certainly affect individual preferences are considered. Regions with low poverty are the essential determinants of social policies as well as political struggles. Looking at the diagram of Pakistan, institutional structures are constructing individual preferences. Institutions are trying to work together in order to provide future protection to their employees, but it divided the social structure. Therefore, the state employees or employees belonging to social schemes may have future protection. However, workers in rural or agricultural fields who do not meet the criteria to join social schemes do not have future protection.

2. Poverty in Pakistan: statistics and facts

2.1. calculating poverty.

Calculating a poverty line grounded on some lowest standard level of consumption and assessing the proportion of population below that line, are the most frequently used standard for the measurement of income or consumption‐related poverty. However, Planning Commission of Pakistan has recommended an official poverty line in 2000, after 53 years of its independence. According to the definition of Planning Commission, the official poverty line for Pakistan will be estimated on 2350 calories per adult equivalent per day. This is based on an adult equivalent intake of 2150 calories in the urban areas and 2450 calories in the rural areas. Recent trends of poverty in Pakistan are being presented in Table 1 .

Year Poverty Study
1987–1988 13.0 [ ]
1990–1991 17.26 [ ]
1992–1993 22.40 [ ]
1992–1993 25.50 [ , ]
1998–1999 35.2 [ , ]
2001–2002 34.5 [ ]
2004–2005 23.9 [ ]
2005–2006 22.3 [ ]
2007–2008 17.2 [ ]
2010–2011 12.4 [ ]

Table 1.

Trends in poverty, based on different studies.

The above data illustrate that the incidence of poverty is not constant. There is a persistent decline in poverty based on official poverty evaluation since 2000–2001. There was an elevation in poverty during 1987–1988 to 1998–1999. It was still nearby in 2001–2002 (34.5%). But, it was followed by sudden decline of more than 10% in 2004–2005. Following years from 2004 to 2011 indicates further decline in poverty. Nevertheless, this trend of fast decreasing in poverty has not only created a huge disturbance in the media, but also among development authorities and civil society [ 11 ]. But, these trends obtained a support from independent evaluation by the World Bank, which revised the trends in poverty and accepted the decline in poverty [ 10 ].

2.2. Human development index

According to a recent global survey [ 12 ], Pakistan is ranked at 147 out of 188 countries in 2014, which is very low in term of human development, and also lower than neighboring countries like India (130), Bangladesh (142), Iran (69), and Sri Lanka (73). Pakistan scored 0.538 points on human development index (HDI) of 2014, which showed improvement of 0.002 points from previous year, but did not change the overall ranking. Recent trends of HDI in Pakistan are presented in Table 2 .

Year 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014
HDIpoints 0.356 0.380 0.399 0.424 0.444 0.495 0.522 0.527 0.532 0.536 0.538

Table 2.

Trends in human development index.

The trends in HDI show a continuous increase in points from 1980 to 2014. However, the ranking of Pakistan remains in very low human development index countries.

Access to education is still a major challenge to Pakistan. Even though enrollment rates for primary school have increased in the past, these are still very low compared to universal values, and also lower than other low‐income countries. Similar to poverty, there are major regional, rural‐urban and gender disparities. A recent research has shown a relationship between literacy rate and poverty by calculating four indicators (literacy of household heads, their educational attainment, the presence of a literate woman in a household, and highest qualification in a household) [ 14 ]. This study showed that families with higher education levels are less exposed to poverty. For example, in Punjab province, poverty was three and half times higher in families headed by an illiterate person than families headed by literate persons. In Sindh province, 55% of poor families were headed by illiterate persons compared to 27% of poor families headed by literate persons.

Health situation and access to health services are other major challenges to Pakistan. All indicators stay at low levels except immunization rate, which points out reduced development. It could be due to very low public spending on health (0.3% of GDP), comparing with regional (0.9% in South Asia) and low‐income countries (1.6%). Similarly, infant mortality rate and life expectancy are very low [ 10 ].

Gender inequality is another issue which poses a major challenge to Pakistan. Female literacy rates remain low at 42%. Health status of women is also worse than men, and it is affected by the lack of information, mobility, and social norms. The idea of gender includes our hope about the characteristics, approaches, and behavior of women and men, and is vital in facilitating gender analysis. Majority of the females are earning less monthly income as compared to males in both urban and rural areas of Pakistan. Majority of the female in rural and urban areas of Pakistan belongs to low‐income groups [ 15 ]. So, there is a clear indication that feminization of poverty or gender inequality exists in both urban and rural areas of Pakistan.

2.3. Regional disparity

Regional disparity among rural and urban areas is well seen in Pakistan. The higher rate of increase in poverty in the rural areas has prompted debate on growth and productivity trends in the agriculture sector. Recent trends of poverty in rural and urban regions are being presented in Table 3 .

Year Rural Urban Studies
1984 41 29 [ ]
1993–1994 47 24 [ ]
1998–1999 32.11 26.39 [ , ]
2001–2002 41.02 26.47 [ , ]
2004–2005 28.1 14.9 [ ]
2005–2006 27.0 13.1 [ ]
2007–2008 20.6 10.1 [ ]

Table 3.

Trends in urban and rural poverty, based on different studies.

It is very clear from the above table that there is a huge disparity between urban and rural poverty. Even though both rural and urban poverty decline with every passing year, the decline in urban poverty is greater than rural poverty. Similarly, a research had established an outline that concentration of chronic poverty is found in rural areas of the country [ 20 ]. However, different poverty lines have been debated in recent research that has put the urban poverty figure on the higher side.

However, the comparison of poverty levels among agroclimatic zones is very important in poverty studies [ 21 , 22 ]. Another research exposed the difference of poverty among agricultural and other zones of the country [ 14 ]. In this research, it is confirmed that the barani 1 zone has lowest poverty rate compared to other regions of country. Rawalpindi division has less poverty because of job opportunities in Islamabad capital, armed forces, overseas migration, and strong rural‐urban linkages. However, poverty is relatively higher in Southern Punjab (cotton‐wheat zone) and Sindh than other zones of these provinces. There is a very important factor that can be drawn from the regional difference among agricultural and nonagricultural regions in the Punjab province. Northern Punjab, which has the lowest level of poverty in the country, is agriculturally poor region with the lowest cultivated area per capita, and no irrigation. On the other hand, Southern Punjab, despite its highest cultivated area per capita and 100% irrigation, is one of the poorest regions in the country.

3. Government efforts to reduce poverty

Pakistan does not have any general or universal social protection system that covers all of its population. It does not even have an umbrella institution that would extend social protection and social safety nets to the poor. However, a number of programs targeted at improving governance and responsibility of public institutions to be able to better respond to the needs of the poor, assisting them economically by creating income and employment opportunities, and improving their access to basic services are being implemented by the government, NGOs, and the private sector. Each of these sectors operates in a distinct manner as discussed in this section.

3.1. Governmental reforms

The Decentralization Plan revealed in March 2000, is an essential governance reform that targets to replace the existing highly centralized and control oriented government with a three‐tier local government system that institutes “people‐centered, rights and responsibility‐based, and service oriented” government structures. The important poverty determined facilities, such as health and education, have been transferred to district and lower local governments under this strategy. Provinces, once mainly responsible for the provision of services, assumed new responsibilities to support and supervise the performance of local governments, not as administrative members of the provincial administration, but as independent corporate bodies accountable to the electorate through political leaders.

Numerous civil service reforms have been implemented by the government to improve public sector and make it more accountable and approachable to the citizens. The issue of improving the financial management system in the country has received particular attention. Microfinance is another step that government took to provide basic support to the poor. Khushhali Bank was established in 2000 with the support of Asian Development Bank. The main aim of this bank was to benefit the poor through income generating activities, to establish small‐scale enterprises and small infrastructure ventures. Within first 2 years of its establishment, the bank had distributed an amount of Rs. 100 million to 15,000 beneficiaries, while 30% of the bank’s borrowers were women. This bank also supported social mobilization activities within poor communities and development of infrastructures such as water channels and link roads in the neglected rural areas.

Pakistan Poverty Alleviation Fund (PPAF) was founded in 1997 by the government to help poor through loans. Now, it works with the World Bank, to increase the access of poor and microenterprises to credit facilities. Policy guidelines for PPAF are provided by the board of directors, which contains three members from the government and nine members from the civil society. PPAF works as a supplier that distributes its credit through fellow organizations mainly nonprofit organizations. However, the effectiveness of PPAF in this regard has not been officially measured since 1997. So, the policymakers and researchers could not evaluate its benefits to poor.

The Zakat and Ushr Department was established in 1980, which was based on Islamic traditions in which rich people should pay a specific amount at the rate of 2.5% on their wealth to the poor. Zakat is imposed on different assets such as saving bank accounts, fixed deposits saving certificates, mutual funds, government securities on which return is paid and life insurance policies. Banks, companies, and financial institutions that operate these assets deduct Zakat. This deducted amount of Zakat transfers into Central Zakat Fund at State Bank of Pakistan. Central Zakat Fund transfers funds to Provincial Zakat Fund, which further transfers it to District Zakat Committee, based on population basis. Each District Zakat Committee further transfers funds to Local Zakat Committee at village, Mohalla (street or small towns), and other organizations such as Deeni Madaris (religious schools), government educational institutions, and vocational training institutes.

Pakistan Bait‐ul‐Mal (PBM) was set up as an autonomous corporate body in 1992. PBM was established to work for poverty alleviation through its focus on widows, orphans, disabled, needy, and poor people irrespective of sex, caste, creed, or religion. It provides educational assistance, residential accommodation and necessary facilities, free medical treatment, and promote self‐employment schemes. Federal government is the main financing source of PBM but it also receives small grants from the Zakat funds as well as from provincial and local governments.

3.2. Social security schemes

The Social Security Scheme for Employees was first introduced in March 1967. It was the first formal initiative to provide social security to the state employees. Originally, this scheme particularly covered workers in the textile industry with the objective of providing protection against possibilities of illness, maternity, work‐related injury, invalidity, and death. The coverage of the scheme was expanded in 1969, which also included workers from commercial and other industrial establishments having ten or more employees.

The Workers Welfare Fund Scheme and the Worker’s Children Education Ordinance were initiated during the early 1970s. These schemes provide education, matrimonial and housing related benefits to workers in the formal sector. The Employees Old Age Benefits Institution (EOBI) was established in the year of 1976 as a federal scheme to provide old age benefits, invalidity and survivor’s pensions as well as old age grants to those eligible. It covers formal sector establishments, employing ten or more workers.

Nevertheless, none of these schemes cover workers from the agriculture region, the informal economy and those in the formal sector who are either employed temporarily or through contractors or are employed in companies with less than ten workers.

3.3. Role of NGOs and civil society

There is a close connection between NGOs, civil society, and democracy in any country. In this connection, NGOs are part of civil society that strengthens the society through activities. This process, in turn, supports the democratic development. Civil society and nonprofit sector have appeared as a significant performer on the development aspect in Pakistan, particularly in the last two to three decades. The development of NGOs and civil society as an active development entity is widely seen as a response to the failure of the state in providing successful and well‐organized basic social services, and in its overall suppression. Most of the NGOs are working with partner organization at grassroots level for poor and marginalized groups.

However, the exact extents of the nonprofit sector in Pakistan are not known because of multiple laws under which NGOs and civil society organizations can be registered with no centralized system of recordkeeping in government agencies, and also because many organizations are not registered with any agency. For example, in order to be registered, NGOs in Pakistan can opt between five different legal frameworks.

Civil society has considerably progressed in past few decades. It is flourishing in Pakistan with the recent development of technology, geopolitics, and markets. This development stimulates the construction of many civil society organizations, giving rise to exciting representation of citizens at both online and offline platforms.

There are different types of NGOs, which are associated with different types of social services. Welfare‐oriented NGOs are primarily philanthropic institutions working with vulnerable groups. Edhi Welfare Trust is the best example for this type of category. It operates a countrywide network of relief services such as ambulance, old houses, orphanage houses, women shelter houses, poor feeding houses, and its work has been recognized internationally.

Social sector, NGOs, and other civil society organizations are mainly focusing on social development limited to health or education. Agha Khan University health program is one best example, providing health and education services to poor. Numerous NGOs are employing cohesive rural and urban development programs in different parts of the country and provide a range of development services. Most of these have adopted a participatory approach and work closely with local communities.

3.4. Benazir income support program (BISP)

Benazir Income Support Program is considered an important public scheme to support poor families in all parts of the country. It was launched in 2008 as a social safety net platform aiming to increase the living standards of the poor and controlling the negative effects of slow economic growth, food crisis and inflation of the poor (predominantly women). It was started with the goal of providing money to poor families, which would help them to buy basic needs of life such as food and house expenditures. This program is very significant support of government’s development program on poverty eradication and women empowerment. Government of Pakistan has continuously increased the allocation of funds for BISP since its formation.

To allocate the poor people, BISP developed a better research design and data collection method. In the opening year, members of National Assembly (MNAs) were given the task to supervise the allocation of poor in their respective areas. However, later on, it was substituted by a Poverty Scorecard (PSC) constructed on a Proxy Means Test (PMT) applied on household census data. PMT consists of 23 variables and uses poverty characteristics such as number of assets, education level of household head and the number of dependents, to identify the poor [ 24 ]. It has identified 7.5 million families that are eligible for support fund. However, 4.6 million eligible families are already receiving support funds, which comprise of 17% of the total population. Eligible families were receiving a cash amount of 1000 Pakistan rupees per month in 2012, and the amount is expected to increase in the next years.

4. The need for improved social policy structure

The literature on poverty and poverty alleviation in Pakistan used comprehensive approaches to measure the level of poverty and poverty alleviation. Key initiatives, including government reforms mentioned earlier, reflect this comprehensive approach. The recent findings of international institutions such as the World Bank or the UN have confirmed a relative success in the Pakistan’s recent efforts to reduce poverty [ 10 , 12 , 13 ]. However, this comprehensive approach needs appreciation, but it also needs evaluation because there are gaps that still exist in the poverty literature in the country. Schemes that can be found in literature on poverty are mostly related to income‐based poverty or to economic wellbeing. Therefore, there is a gap among the overall objectives of these policies and their interventions. A comprehensive approach of poverty and poverty alleviation agendas should take into consideration some other dimensions such as gender equality, women’s empowerment, human rights and inclusive social policy.

The role that the state plays in poverty alleviation is determinant for two main reasons. First, it is widely recognized that decentralization of power favors an increase of effectiveness of antipoverty efforts. Second, one‐size‐fits‐all (or a national) approach in eradicating poverty tends to increase regional inequalities because poverty is not evenly distributed across the country. Therefore, in order to have better outcomes in poverty alleviation, the government should consider a more contextual approach in designing antipoverty policies for different regions in Pakistan.

In the scenario, poverty is not evenly distributed across the country of Pakistan. At the county level of accumulation, poverty is overwhelmingly a rural problem, with the most remote rural places at the greatest disadvantage. Thus, the country should focus more on the reasons for poverty instead of personal choices of favoritism.

On the other hand, the government has also tried to implement economic policy to reduce the poverty. Nevertheless, economic policy is different from social policy in some patterns. First, social policy identifies that social and political structure in which people live. It also determines the physical and economic environment for wellbeing of people. It recognizes the significance of the organization and institutional context within which people exist. Second, it identifies the significance of the poor’s own awareness of poverty and the context of their specific identification of priorities. It is an ambiguous concept of poverty in which policy makers and rich assume that they know what poor people want and need. Other characteristics are often neglected except measuring underlining income and consumption. Whereas being poor has various criteria and it is often a mystery that divides them into categories and identifies what do poor need, instead of realizing the real need for poor.

As poverty is more prevalent in rural than urban areas, it calls for special attention from the state toward rural areas. Social policy also appears to face additional barriers to effectiveness in rural areas. A study on the effects of the changes in social policy on employment and poverty among rural and urban female‐headed households determined that rural and urban areas differ in personal characteristics of the population, local labor market environments, work barriers, or availability of services that make it more difficult for the social policy changes to move single mothers in rural areas into employment and out of poverty [ 25 ].

5. Conclusion and future strategies

Even if some progress has been made in terms of poverty alleviation, the government’s policies have had a marginal success, especially in rural areas. Rural areas are suffering from more poverty than urban areas; therefore, the government should give priority to rural areas to reduce poverty. The government must follow a long‐term economic plan by considering the fast‐changing demographic and economic trends. At this level, Pakistan should pay more attention to the quality of poverty instead of quantity. There are four comprehensive plans and supplementary policies that states might follow in reducing poverty, particularly in rural areas. In addition to these strategies, further research is required on the features of poverty.

5.1. Provision of local economic development

Different studies (for example, see Ref. [ 26 ]) had mentioned that income subsidies, tax credits, and low‐income loans to employers are incentives that policymakers might think for disadvantaged rural areas. Such tools can act as incentives for employers to expand their business, create new jobs, hire low and semiskilled workers, and offer services like onsite childcare and van shuttles. Another research argues for regional cooperation and for including poverty and underdevelopment among the explicit criteria to retarget economic development funds to places most in need [ 27 ].

This condition requires the development of local economic structure that not only benefits local communities but also helps national economic development. The biggest criticism to this model is that local governments does not have satisfactory human, financial, and logistic resources. In addition to this, administrative staff at local government lacks basic technical and managerial skills. This criticism does not provide enough strength to national or provincial government in order to transfer power to local governments. However, training and support should be provided to local governments and their staff instead of forbidding them. Because central governments at national and provincial levels are unlikely to have the capacity to assess the diversity of local conditions or local requirements and capabilities, their staff is possibly more trained and skilled, but also more remote and far away from local conditions.

Therefore, Pakistan needs a local economic development that offers opportunities for local governments, private sector, NGOs, and civil society to work together to improve the local economy. This development centers on improving effectiveness, increasing sustainable growth, and confirming the inclusive growth. The practice of local economic development ought to be assumed at different geographic measures. This development model provides better opportunities to local communities for economic development compared to national economic model.

5.2. Construct community capability and institutions

Policies to reduce poverty would have to focus on establishing the right circumstances for new industry masses to develop. The key conditions are the institutions that advocate knowledge formation, a business culture that supports entrepreneurship, institutions of higher education such as rural community colleges. As some studies (for example, see Ref. [ 28 ]) proposed in the American context, the evidence from workforce development evaluations suggests that institutional collaborations, for example, the participation of business and community colleges in workforce investment initiatives can improve employment outcomes for low‐income workers. Therefore, institutions in domestic region not only provide new facilities and jobs but also engage the local community to improve local situations.

Furthermore, if we consider the policies that inspire new concepts of economic development, then we cannot ignore the necessity of local institutions and their role in the local development. This objective can be achieved only by cheering the communicative and dialogic exchange among different stakeholders at both, national and local levels. Therefore, the relationship among local authorities, economic divisions, and citizens could redefine the reasons and effects of poverty, as well as strategies to reduce poverty. Consequently, institutions would not only provide opportunities for work, but they will start the movement to stimulate the local communities.

Social and institutional contribution may look complex because of the different levels of contributions among local actors. However, it will change the behavior and feelings of citizens to be part of local development. Their active participation definitely helps their communities to escape the poverty trap.

5.3. Improve workers’ productivity

Development of education and workforce has been seen to have important beneficial effects on earning capacity. A review of policy evaluation for workforce development in low‐income workers concluded that education and job training are the most successful ways to help local communities to improve social conditions [ 29 ].

Occupational health and safety is a major factor for improving workers’ productivity, especially in developing countries like Pakistan that are lagging far behind in health conditions. Common features that may decrease the health safety and workers’ productivity are inappropriate workplace design, weak structured jobs, mismatch between worker abilities and job demands, and poor capital‐labor ratio. Most of these factors are not directly connected to poverty; however, these are connected indirectly by means of workers’ productivity. Therefore, it has direct or indirect effects on the overall performance of country’s profile for poverty alleviation. Thus, the government should make an effort to improve worker productivity through education and training.

A recent study (for example, see Ref. [ 30 ]) develops some policy recommendations through production jobs to reduce poverty. This research reviews the literature on poverty and growth, and suggested to set up capable institutions for productive jobs that will ultimate help to reduce poverty. Market, organizations, and government are three main institutions that are essential for development. Market is spontaneous where firms provide best practices and productive jobs to the poor areas and the government’s role is to establish a correct governing agenda for business development.

5.4. Social security for workers in rural area

As in Pakistan, social security is only serving the workers of public sector and only in urban areas. Thus, government must construct a social security policy for workers in rural areas that provides safety at their retirement age, like governments employees. Provision of social security not only reduces the dependability of old people on their children but also helps to reduce poverty by providing enough funds to old people to look after themselves. BISPK is a first step toward social security for low‐income families across the country. However, it does not cover the elderly population who claims to be in retirement age. Poverty in rural areas is different from poverty in urban areas and vice versa. Similarly, causes of poverty are also different in both areas. The biggest cause of rural poverty is lack of social security for workers, because most workers depend on their daily or monthly wages which contribute to their current life that does not provide security for the future. Therefore, initiatives should have been taken to provide social security to every citizen including private and rural workers.

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Poverty in Pakistan: Issues, Causes, and Institutional Responses

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This report describes the trends and key features of poverty in Pakistan, discusses its main causes, outlines existing programs and initiatives to reduce poverty, and gives a set of strategic options for ADB.

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  • Causes of Poverty
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Who is poor in Pakistan today? Raising the basic standard of well-being in a changing society

Ghazala mansuri.

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Over 80 percent of Pakistanis consistently report that their economic wellbeing has either deteriorated or remained the same. Only 20 percent, disproportionately concentrated in the very top of the distribution, feel that they are better off and similarly small numbers believe that economic conditions have improved for their locality. If we took a poll today, it is possible that many of you would say that extreme poverty has risen rather than fallen. But in fact, the national data tells a completely different story! According to the national poverty line set in 2001, Pakistan has seen an exceptional decline in poverty—falling from nearly 35 percent in 2001 to less than 10 percent by 2013-14.  Moreover, these gains were not concentrated among those close to the poverty line. Even the poorest 5 percent of the population saw an improvement in living standards.

The increase in incomes is also evident when looking at other indicators of wellbeing. Access to toilet facilities for instance, has significantly improved; Among the poorest 20 percent of households, those without any type of toilet has been cut in half—from close to 60% to about 30%, while the ownership of assets like motorcycles has risen from only 2% to 18%; and many more of the poorest households now have refrigerators, televisions and stoves.   Most importantly, households have changed their dietary patterns in ways that are consistent with poverty reduction. Even the least advantaged families in Pakistan have moved towards a more diverse diet, with a greater consumption of dairy, meat, fruits and vegetables. Not only has their diet become more diverse, households also spend a smaller fraction of their total income on food items, preferring instead to spend more on nonfood items such as housing, utilities, education, health care and consumer goods, including leisure goods.   So what accounts for the gap between people’s perceptions of rising poverty and the evidence presented above? Perhaps it is the relative lack of improvement in basic public services, or a perception that there is too much corruption, or that only the wealthy and connected can get good jobs or set up businesses. Perhaps there is a sense that the gap between the rich and poor is growing. All of these issues are undoubtedly important, and rightfully influence people’s perceptions about their wellbeing. At the same time, they do not preclude a decline in extreme poverty. Further, our collective sense that too many are poor may actually be linked to the pace to development itself. As societies develop, ideas about the absolute minimum acceptable standard of well-being also change. More precisely, with development, the minimum requirements for a productive life and personal dignity grow, and this changes a society’s views about who is poor. Few would argue that Pakistan is the same country today that it was 15 years ago. As development has occurred our standards for what is a bare minimum level of existence have also risen – and this is a good thing. To anchor this idea, ask yourself: what percentage of Pakistanis ought to be considered too poor (in today’s Pakistan), to afford the minimum standard of living necessary for a productive life and for personal safety and dignity? If your answer is anywhere between 25% and 35%, you are with the majority! Call the poverty rate obtained through such a question the socially subjective poverty rate for Pakistan. A national poverty line, and poverty rate, is clearly most useful for guiding policy when it is well-aligned with overall development and therefore also with the socially subjective notion of who is poor. In this sense, the poverty line is always a policy choice. All societies that aim to build democratic and inclusive policies must respond to development by periodically raising the standard of living for their most vulnerable members. In the (now) developed world, governments have intervened time and again to help ensure that the standard of living for the most deprived improves with development. The government’s decision to set a new poverty line for Pakistan is extremely encouraging in this context. It was also necessary given the robust decline in poverty based on the old line. The new line, which uses an improved methodology, sets a minimum consumption threshold of Rs. 3030 per person per month. This translates to between Rs. 18,000 and Rs. 21,000 per month for a household at the poverty line, allowing nearly 30% of the population or close to 60 million people to be targeted for pro-poor and inclusive development policies—thus setting a much higher bar for inclusive development.   Why Rs. 3030 per person per month? Well, while the analysis that produces a national poverty line is based on nationally representative household consumption data, and uses a rigorous and well established method, it does not uniquely determine a value for the line. Rather, it provides a range of options, all of which are compatible with the data, but only a few of which are also consistent with society’s understanding of who is most deprived at a point in time. Pakistan’s new national poverty line is highly policy-relevant precisely because it resonates with the socially subjective view of who is poor today. Pakistan now needs to build on this bold decision by taking equally bold steps to scale up its efforts on other fronts. Things have not improved on key issues like child stunting or schooling or jobs, which will determine what the country’s future looks like. The true fruits of poverty reduction will only be fully evident when the quality of public service delivery and the quality of governance rise to meet the growing needs of the population, and key services are accessible to all Pakistanis.

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Ghazala Mansuri's picture

Lead Economist, Poverty Reduction & Equity Group, World Bank

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Unraveling the layers of poverty in Pakistan

Poverty remains a formidable challenge in Pakistan, hinder­ing the country’s potential for eco­nomic growth despite its rich cul­tural heritage. With an estimated poverty headcount of 39.4% in FY23, 12.5 million more Pakistan­is have fallen below the Lower-Middle Income Country poverty threshold compared to FY22.

Several factors contribute to Pakistan’s deep-rooted poverty issues. Corruption-related prob­lems deny millions access to basic facilities, including clean water, sanitation, healthcare, and qual­ity education. Limited education­al opportunities, especially in far-flung areas, perpetuate the cycle of poverty.

High unemployment rates, par­ticularly among the youth, cou­pled with low wages, further exacerbate the problem. The in­flation rate, influenced by curren­cy devaluation, continues to esca­late poverty in Pakistan.

PM for SMEs capacity building to enhance profitability

Leadership plays a pivotal role in addressing poverty, but cor­ruption in political circles can di­vert funds from essential pover­ty relief programs. While not all leaders are corrupt, acknowledg­ing and combating corruption is crucial for meaningful poverty al­leviation efforts.

KASHAF ASHRAF,

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Presentation on “Poverty in Pakistan: What We Know and What We Need to Know” by Dr. Moritz Meyer, Senior Economist, World Bank and Coordinator, World Bank Poverty Assessment Report Pakistan at GIDS on 25th November 2021

poverty in pakistan essay with headings

Dr. Moritz Meyer, Senior Economist, World Bank visited the Graduate Institute of Development Studies (GIDS), Lahore School of Economics on 25th November 2021.

He presented the current patterns and trends of monetary and non-monetary household welfare of Pakistan. He highlighted that while there has been an overall substantial decline in poverty between 2001 and 2018, large disparities in living standards remain when observed at provincial and district level. The divide between rural and urban areas is also significant.

His presentation included the impact of Covid-19 on poverty; he mentioned that projected estimates suggest a reversal and increase in poverty trends in the country but the actual impact on household welfare remains unclear. With persistently poor health and educational outcomes and limited progress made in the area, the pandemic is expected to have exacerbated the human capital gap. Adding on, he also brought in the discussion the aspect of gender inequality in the labour market of Pakistan.

From policy perspective, he discussed the role of taxes and transfers on poverty and inequality, as well as the vulnerability of the poor households to natural disasters arising from climate change.

After his presentation he met with Dr Rashid Amjad, Director GIDS and the faculty. He expressed a desire for future collaboration between World Bank, Pakistan Office and the GIDS.

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Pakistan’s Plans for Poverty Eradication in Most Impoverished Districts

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Twenty of Pakistan’s poorest districts have been chosen for implementation of the Ministry of Planning’s development plan for 2022-2027.

Pakistan’s Plans for Poverty Eradication in Most Impoverished Districts

Thousands of people displaced by floods in 2022 in Sindh, Pakistan are still homeless, Feb 20, 2023.

It is when a natural disaster hits a country that its government, international humanitarian agencies, and the media wake up to the vulnerability of the people, especially those living in extreme poverty. This is the case in Pakistan.

In the summer of 2022, Pakistan was hit by unprecedented rains . A third of the country was under flood water; more than 2,000 people lost their lives and millions of others lost their homes and livelihoods. Most of the displaced are still living in temporary camps and struggling to make ends meet.

Long before the disaster, Pakistan struggled with visible poverty and disparity. There was always a gap in the living conditions of people in the country’s towns and cities and those in rural areas. The 2022 floods laid bare to the world the ravages of climate change and its effects. But also it underscored the negligence, lack of effective policy, broken infrastructure, regional inequalities, and above all extreme poverty that determined the magnitude of the devastation.

According to the 2019-2020 Pakistan Social and Living Standards Measurement Survey ( PSLM ), 37.8 percent of Pakistan’s population lives in multidimensional poverty. Although the proportion of Pakistan’s population living in poverty has been falling over the years – it is said to have halved over the past two decades – it is expected to rise as a result of the 2022 floods. The Post-Disaster Needs Assessment ( PDNA ) has predicted that the proportion of the population living in poverty is now likely to increase to 43.7 percent.

Natural disasters may be unavoidable, but much of the loss and devastation they leave behind could be prevented through better planning, infrastructure and poverty reduction initiatives.

One such initiative is the Ministry of Planning’s five-year development plan for 2022-2027 for 20 of the poorest districts of Pakistan, many of which were severely affected by the floods. These districts were carefully chosen through the government of Pakistan and the UNDP’s multidimensional poverty index (MPI) survey .

Among these 20 districts, 11 are in Balochistan, Pakistan’s most impoverished province, which has been wracked by armed conflict for more than two decades now. Five districts are in Sindh, three are in Khyber Pakhtunkhwa (bordering Afghanistan and under the intermittent control of the Tehreek-e-Taliban Pakistan militant group), and one district is in Punjab, the largest of the 20 in terms of population.

According to the Ministry of Planning, the initiative is specially designed for the socioeconomic upliftment of the backward districts, to reduce regional disparities and strengthen national integration as a result, promote inclusive and equitable development, and attract investment in infrastructure and human development.

To achieve these objectives, the tentative interventions envisaged so far by the government include improving physical connectivity through roads and highways; power and digital connectivity through internet and solar power installations; livelihood initiatives relating to farming, border markets, and industrial setups; and social development and protection through education, health, and access to skill development and scholarship programs.

It is believed that with these interventions and proper planning, the districts can be made more livable and disaster-resilient, and the ongoing internal migration of the poor from rural areas to urban slums can be controlled to an extent.

Achieving the goals in a span of five years seems ambitious. The Planning Commission has not shared how it intends to implement the plan.

However, Federal Minister for Planning and Development Ahsan Iqbal recently tweeted that the government is considering drawing on the suggestions of local communities, provincial and national representatives from the selected districts, and experts to make the initiative more effective and achievable.

The first phase of the project is estimated to cost around $207 million,  which will be shared equally between the federal and provincial governments.

The question is how is the government going to fund the ambitious poverty eradication plan. Pakistan is going through one of its worst economic crises ever, one that has been worsened by the floods last year that caused estimated damages of more than $30 billion .

In early February, inflation rose to a 48-year high, making it harder for the poor to afford basic food items. Meanwhile, the IMF has laid down conditions that Pakistan will have to meet to access the loan package. These conditions include the imposition of higher taxes on the rich for greater revenue generation. But experts believe raising taxes even for the rich can have implications for the economy.

The government’s initiative is important. However, it is doubtful whether it can succeed given Pakistan’s structural economic problems, poor management of public funds, widespread corruption, and a foreign policy that supports overreliance on external financial assistance. Will the federal and provincial governments be able to eradicate poverty from the 20 districts? Or will they push the chosen districts deeper into poverty?

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Home / Essay Samples / Social Issues / Begging / Poverty In Pakistan: Contributing Factors And Possible Solutions

Poverty In Pakistan: Contributing Factors And Possible Solutions

  • Category: Social Issues , World
  • Topic: Begging , Inequality , Pakistan

Pages: 4 (1684 words)

Views: 1678

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Types of Poverty

Absolute poverty: “it refers to the state of severe deprivation of basic human needs. ”, relative poverty: “it is defined contextually as economic inequality in location or society in which people live”., voluntary poverty., causes of poverty in pakistan, reduction strategies in pakistan, pakistan government adopt that strategies or companies.

  • Benazir Income Support Program (BISP).
  • Emergency Relief Packages
  • Health insurance.
  • Peoples Work Program (PWP)
  • Pakistan Bait-ul-Mal (PBM).
  • Employees Old Age Benefits institution (EOBI).

Solutions to Poverty in Pakistan

  • The full equality between men and women in public as well as private areas of life, a worldwide minimum wage of $20 per day and the end of child labor under the age of 16 with the creation of a subsidy for scholarship.
  • The guarantee of shelter, healthcare, education, food and drinking water as basic human rights that must be provided free to all.
  • A total redistribution of idle lands to landless farmers and the imposition of a 50% cap on arable land devoted to products for export per country, with the creation of a worldwide subsidy for organic agriculture.
  • Government should create better policies to tackle this problem and learn from our past. There should be policies for providing jobs to unemployed people.
  • Promote industrializations
  • Replacement of the traditional agriculture
  • Equipment with new specific equipment in order to increase the yields.
  • Establishment of justices and equality
  • Equal distribution of resources
  • Elimination of discrimination policies
  • Social Protection

Social Assistance Programs for the poor

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