GLOBAL ISSUES

POVERTY

Presented By:
Muhammad OSAMA
Table of Contents
•Nishat Linen LTD

•Industry Overview

•Economic Indicators

•Unemployment Rate

•Inflation Rate
 POVERTY
• Poverty is a global issue. All the countries around the world face the problem of poverty.

• There are some countries which are poorer than others like the developing countries in Africa,
Asia and Latin America. 
• There is no one size fits all definition of the concept of poverty. The poorest people in an
industrialized nation maybe well off than the average citizens in a less-developing country.
• Extreme poverty is known as destitution or absolute poverty and it could be injurious to
people’s health and life. 

 
 UNITED NATION
•  According to the United Nations Human Development Report 1996, the average per capita
income of the poorest one-fifth of Americans was $5,814 in 1993. 

• That figure is ten times Tanzania’s average per capita income of $580 per year. 

• Most poor American families own more luxury items and consumer appliances than average
Europeans do (UN 1996).

• Although there are some regions that have made considerable progress in reducing poverty,
about two thirds of the world’s poor live in Asia and the Pacific, based on a poverty line of one
dollar a day. 

• There are more than one billion people in the region whose income is between one and two
dollars a day.
 ABSOLUTE & RELATIVE POVERTY
•   In the United States, absolute poverty is traditionally defined as having an annual income that
is less than half of the official poverty line (an income level determined by the Bureau of the
Census). 

•  Absolute poverty in developing nations, as defined by international organizations, like the

World Bank, means having a household income of less than US $ 1.25 a day in 2005.

• Relative poverty is the condition of having fewer resources or less income than the others
within a society or country, or compared to worldwide averages. 

• Relative poverty is socially defined and dependent on context, it is a measure of income

inequality.

 
 REASONS FOR POVERTY
•   Poverty results from a lack of adequate resources on global level-resources
such as land, food, and building materials-that are necessary for the well-being
or survival of the world’s people.

•  Poverty also arises as an effect of the uneven distribution of resources around

the world.

• Understanding the inequality between the two worlds, one where some people
have more than they need to live and one where the people do not have enough
to survive.

 
 NGO’s
• There has been considerable interest in recent years in the ability of non-governmental
organizations to work with the poor in order to improve their quality of life and economic
status.
• Through the provision of credit, skills training, and other inputs for income-generation
programmes.
•  NGOs are generally composed of non-profit, voluntary citizens, groups which are organized
on a local, national or international level and they have certain interests, causes, or goals.
• NGOs have a positive impact on local and international issues, such as poverty alleviation,
conservation of human rights, preserving the environment, and providing worldwide relief.
• The number of international non-governmental organizations alone rose from 6,000 in 1990 to
reach 26,000 in 1996, and 37,000 in 2002. In 2006, it was estimated that there were some 1.5
million NGOs in the USA alone.
Unemployment Rate In Pakistan
 Unemployment Rate In Pakistan

 Pakistan unemployment rate for 2019 was 4.45%,

a 0.37% increase from 2018.
 Pakistan unemployment rate for 2018 was 4.08%,
a 0.14% increase from 2017.
 Pakistan unemployment rate for 2017 was 3.95%,
a 0.16% increase from 2016.
 Pakistan unemployment rate for 2016 was 3.79%,
a 0.22% increase from 2015.
 
Nishat Mills LTD Unemployment Rate
 The Nishat Mills have taken into consideration the highest overall unemployment rate (7.56
pc) for the youth because of the limited slots availability in the company.
 As the economic deficit increase over the span of last five years, the foreign exchange and
direct investment have decreased over the certain period of time. This has also decreased the
growth and profits of the company.

 As Nishat Mills LTD is a multi-billion dollars company with huge amount of cash flows
available for the smooth working and circulation of their wealth.
 So, the work force of Nishat has not faced the storm by economic crisis but the hiring’s of the
fresh labor force has drastically decreased.
Inflation Rate
 Inflation Rate In Pakistan

 Pakistan inflation rate for 2019 was 10.58%, a 5.5%

increase from 2018.
 Pakistan inflation rate for 2018 was 5.08%, a 0.99%
increase from 2017.
 Pakistan inflation rate for 2017 was 4.09%, a 0.32%
increase from 2016.
 Pakistan inflation rate for 2016 was 3.77%, a 1.24%
increase from 2015.
 
 Nishat Mills LTD Inflation Rate

 Because of the subsequent low profitability in cotton crops, farmers are shifting to other cash
crops, such as sugar cane.
 It is the lack of proper R&D that has led to such a state.
 They further accuse cartels, especially the pesticide sector, for hindering proper R&D.
 The pesticide sector stands to benefit from stunting local R&D as higher yield cotton is more
pesticide resistant.
 These factors are working in the form of high rates which ultimately increases the prices of the
final items of Nishat Mills LTD.
 The purchasing power of buyer has also decreased drastically.
 INCREASING COST OF PRODUCTION

 The cost of production of textile rises due to many reasons like increasing interest rate, double
digit inflation & decreasing value of Pakistani rupee.
 The above all reason increased the cost of production of textile industry which create problem
for a textile industry to compete in international market.
 It also causes the increase in cost of production in Nishat Mills LTD and the increase in their
products.
 Recommendations for Improvements

• Pakistan has robust textile industry and huge potential for raw cotton stock
production

• The latest exports data show virtually no growth in exports.

• The textile sector of Pakistan should have to take innovative steps in there
long term development.

• To enhance textile production so the demand of exports can be stabilized.

• Modern techniques and training, imparted both at the stage of managers and
master trainers.
THANKYOU!