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POVERTY IN PAKISTAN: TRENDS AND ISSUES
The phenomenon of poverty is receiving the increasing attention of policy makers and institutions with an attempt to improve the living standards of the third world countries. Pakistan is no exemption to that. As the majority of third world population is concentrated in rural areas and dependent on agriculture sector for income, it becomes of special interest to dig into the root causes of poverty in these areas. A number of studies have shown that poverty is concentrated in the rural areas of Pakistan. However, a wide variation in estimates of poverty was experienced owing to various approaches and different poverty lines used by the researchers in estimating the incidence, depth, and severity of poverty. Recently, the Government of Pakistan addressed this issue by circulating the official poverty line. Poverty being a complex phenomenon, its determinants vary from time to time and across different areas. However, most of the studies indicate that poverty in Pakistan is concentrated in rural areas of Pakistan. Applying dollar a day poverty line shows that the poverty in Pakistan is higher as compared with many other Asian countries.
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This study estimates the incidence, profi le and economic determinants of poverty in Pakistan using the HIES data 2005-06. The results show that headcount ratio was about 23 percent in Pakistan. Poverty incidence was more than double in rural area as compared to urban area. Decomposition of poverty into socio-economic characteristics depicts that poverty is higher in those households whose heads are illiterate or have never attended school. It decreases as the level of education increases. It is positively related with the dependency ratio. It is higher in those households who have no access to basic facilities-electricity, gas and telephone. It is the highest in those households whose head's employment status, sector and occupation is sharecropper, construction and elementary, respectively. Household size is higher in poor families. The results of OLS multiple regression model depict that the poverty incidence is inversely related with age, education and owned land; while it is...
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The conceptual basis of poverty in Pakistan remained limited to absolute notion of poverty which has been criticised on the grounds that it minimises the range and depth of human needs. The paper broadens the discussion on poverty and poverty measurement by examining the prevalence of relative poverty in Pakistan. Based on the moderate relative consumption poverty line of Rs 775 per capita per month, the prevalence of relative poverty was at 40.7 percent in 2001-02. On the other hand, half of the population was below the income-based moderate relative poverty line, implying that 77.5 million individuals were poor in Pakistan. At the province level, the results suggest the highest prevalence of urban poverty in the NWFP, followed by Sindh, Balochistan, and Punjab. On the other hand, rural Sindh was the poorest region in the country, followed by the NWFP and Balochistan. The trends implied by the concept of relative poverty suggest a more rapidly increasing trend in relative poverty b...
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Pakistan confronts a complex dilemma of the human condition. The major issues are poverty and income disparity particularly among the rural masses. The impact of the crisis of poverty is particularly acute on the weakest sections of the society. It is illustrated that for the year 1990-91, 39.42 percent of the total 31.81 percent of the population below the poverty line was found to be absolute poor containing chronically and extremely poor in the proportion of 34.01 percent and 60.58 percent respectively. Below the poverty line, extremely poor, chronically poor and transient poor constitute 1.72 percent, 10.82 percent and 19.27 percent of the overall population in rural Pakistan. During the whole time series, 1196.76 thousand people added to the clusters of extremely poor, 53769.55 thousand to chronically poor, 6659.13 thousand to transient poor and 7192.43 thousand to the vulnerable poor. It is evident that bringing 59.11 percent of the poor population out of poverty is to certain...
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According to International Labour Organization poverty is a situation in which a person or household lacks the resources necessary to be able to consume a certain minimum basket of goods. The basket consists either of food, clothing, housing, and other essentials (moderate poverty) or of food alone (extreme poverty).
Poverty reduction is one of the most important sustainable development goals set by the UN in 2015. According to this goal, Pakistan must reduce its poverty level to half by 2030 from 24.3 percent to 12 percent.
The official national poverty rates are produced by the Planning Commission using the Household Income and Expenditure Survey (HIES), which has been collected by the Pakistan Bureau of Statistics (PBS) every alternate year, with some breaks, since 1963.
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.
Over the past 20 years, Pakistan has made great progress in reducing poverty. According to international poverty rates, the incidence of poverty fell 40 percentage points, from about 60 percent to about 20 percent, between 1991 and 2008.
A poverty line of Rs. 705.96 per month was used for assessing incidence of poverty in Pakistan while the corresponding figures for rural and urban areas of Pakistan were Rs. 676.31 and Rs. 898.94 per month, respectively.
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.
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. A draft of this report was discussed at a high-level forum by representatives of the
Pakistan’s success in reducing poverty encouraged the government to raise the bar and estimate a more ambitious and inclusive poverty line reflecting the evolution of consumption patterns in the society.
Poverty reduction in Pakistan: The strategic impact of macro and employment policies 1. Introduction The Government of Pakistan, through the Ministries of Finance and Planning, has prepared a robust Interim Poverty Reduction Strategy Paper (IPRSP). The International