Q : Discuss the causes of poverty in Pakistan and steps taken by the government in

this regard.
OR What do you understand by Poverty? What strategy has been implemented by
government to eliminated poverty in Pakistan?

Definition
“Poverty is a multi-dimensional trend which is characterized by lack of income and
non-fulfillment of basic needs as well as lack of access to social infrastructure.”

Causes / Reasons of Poverty

A - Economic Causes

1. Unemployment :
Unemployment is the major cause of poverty. It means no source of income and
unemployed person not in a position to meets his basic needs necessary for life. Rate of
unemployment is 3.02%.
2. Lack of Foreign Investment :
Due to backwardness, political instabilities and improper availability of infrastructure
the attraction for foreign investment is not suitable. Due to low foreign investment
economic growth is low which leads to decrease in employment opportunities and
hence, increase in poverty.
3. Low National Income :
Poverty in Pakistan is also the result of low level of national income. Low level of
national income means low level of savings and low level of investment. All these
factors contribute toward poverty.
4. Use of Backward Technology :
Techniques of productions used by developing countries are backward. Due to out-
dated methods of production, productivity level is low. Low level of productivity
means narrowness of market and reduction in exports and increase in imports.
5. Increase in Utility Charges :
Utility charges like water, gas, electricity, telephone bills etc. are increasing day by day
in Pakistan. More utility charges lead to reduction in the saving of population and its
result in poverty.
6. Backward Agriculture Sector :
In agriculture sector people have adopted just subsistence farming styles. They are not
farming according to the commercial patterns. Sometimes due to natural calamities and
use of backward techniques of production, there is reduction in production and it
decrease the income of poor farmers.
7. Improper Income Distribution :
Imbalanced distribution of resources is an additional cause of poverty in Pakistan. This
situation leads to increase the gap between rich and poor. Due to undesirable
distribution of income and wealth, poor population is unable to take part in economic
activities to remove poverty.
8. Inflation :
High rate of inflation is an extra reason for poverty. Due to inflation much amount of
money is not enough to purchase much amount of goods and services. Inflation
decreases the savings and investments of poor people and they remain poor.
9. Imposition of Taxes :
Government has to impose taxes t raise its revenue. Imposition of taxes reduce the
disposable income of people. Lack of disposable income means low savings, investment
and poverty.

B – Social Causes

10. Population Pressure :

Rapidly raising population is also a cause of poverty. Existing population is already not
provided basic necessities of life. So increase in population will lead to increase in
poverty.
11. Dishonesty & Corruption :
Poverty is also due to dishonesty and corruption in government departments. Officers
receive a huge amount of illegal money for the legal and illegal job. These unnecessary
payments reduce the savings of poor and result in poverty.
12. Illiteracy :
Lack of education and training is also a cause of poverty. It reduces the abilities to work.
Sometimes a worker due to illiteracy remains unemployed or underemployed.
Similarly, lack of skill in entrepreneur also reduces his profit and its result is poverty.
13. Low Living Standard :
Pressure of foreign countries in our economic activities, backward standard of
productivities and improper basic facilities to population reduce the living standard of
population. Low living standard is a symbol of poverty.

Political Causes

14. Law and Order :

Law and order at their poor stage. Businessmen and investors hesitate to invest their
money because of security threat due to which business operations are low and causing
unemployment on a large scale.
15. Poor Governance :
Instable government and inefficiency in the policies of government is another cause of
poverty. Every government failed to establish such policies which are helpful to reduce
poverty in Pakistan.
16. Landlordism :
Ignorant but big landlords control our whole economy. They have no sense of social
welfare. In government they take those actions that are in their personal interests.
17. Nepotism :
Nepotism means the murder of talent and abilities. It refers to the employment
opportunities according to relation not according to the worth. If population is poor but
is talented it remains poor due to nepotism.

Measures to Remove Poverty

 Control of inflation is compulsory to eliminate the poverty.

 Government should provide more facilities to investors to increase the investment to
reduce unemployment.
 Use of modern techniques of production and subsidies in utility charges is
necessary.
 Development of agriculture and industrial sector will reduce the poverty in
Pakistan.
 Government should make easy, more and in time availability of various types of
credits.
 Government should reduce taxes and increase the rate of capital formation.
 Government should allocate more funds for education to increase the literacy rate.
 Government should give more feasibilities and concession to the foreign investors.
 Discriminatory policies should be eliminated.
 Maintain law and order situation in order to protect economic activities.
 Public oriented development projects should be extended so that respective people
could find jobs.
 A grand strategy should be formulated in order to achieve a radical overhaul in
economic system in general by keeping in view the long term requirements of the
country.