Poverty in Pakistan

Group No. 03
Members:
•Muhammad Yousaf Jan
•Abdul Awwal
•Saira Bano
•Sawera Ayyub
•Muhammad Ahsan
•Muhammad Adnan
•Muhammad Waqas
•Aqib Aziz
•Javid Iqbal
Contents
 Introduction to poverty
 Poverty Condition in Pakistan
 Recent Statistical and Research Overview
 Causes/Reasons of poverty in Pakistan
 Effects of poverty in Pakistan
 Solutions/Remedies to Overcome the Poverty in Pakistan
 Conclusion
 References
Poverty
Definition
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). The
most common method used to define poverty is income- based.
 Poverty
According to Homer “This is misery! The last, the worst that man can feel”.
According Jean Guenon “He is poor who doesn't have enough; he is poorer
who cannot get enough”.
According to International labor organization “A situation in which a person is
not able to fulfill its basic needs. Poverty is the lack of basic human needs,
such as clean water, nutrition, health care, education of the inability to afford
them”.
“A person is considered poor if his or her income level falls below some minimum
level necessary to meet basic needs. This minimum level is usually called the
poverty line”.
Multidimensional Poverty Index 2023
The global Multidimensional Poverty Index (MPI) measures acute multidimensional
poverty across more than 100 developing countries. It does so by measuring each
person’s overlapping deprivations across 10 indicators in three equally weighted
dimensions: health, education and standard of living (see figure). The health and
education dimensions are based on two indicators each, while standard of living is
based on six indicators.

All the indicators needed to construct the MPI for a country are taken from the same
household survey. Each indicator is equally weighted within its dimension, so the
health and education indicators are weighted 1/6 each, and the standard of living
indicators are weighted 1/18 each.
Multidimensional Poverty Index 2023
Structure of the global Multidimensional Poverty Index

Source: HDRO and OPHI.

Multidimensional Poverty Index for
Pakistan
The most recent survey data that were publicly available for Pakistan’s MPI
estimation refer to 2017/2018. Based on these estimates, 38.3 percent of the
population in Pakistan (88,701 thousand people in 2021) is multidimensionally
poor while an additional 12.9 percent is classified as vulnerable to
multidimensional poverty (29,896 thousand people in 2021). The intensity of
deprivations in Pakistan, which is the average deprivation score among people
living in multidimensional poverty, is 51.7 percent. The MPI value, which is the
share of the population that is multidimensionally poor adjusted by the intensity
of the deprivations, is 0.198. In comparison, Bangladesh and India have MPI
values of 0.104 and 0.069, respectively.
 Contribution of
deprivation in dimension
Population share (%) to overall
multidimensional
Countries poverty (%)
Vulnerable to In severe Below
multidimensional multidimensional income
poverty line Standard of
poverty poverty Health Education
living

Pakistan 12.9 21.5 4.9 27.6 41.3 31.1

Bangladesh 18.2 6.5 13.5 17.3 37.6 45.1

India 18.7 4.2 10.0 32.2 28.2 39.7

The most recent MPI for Pakistan relative to selected countries.

 Table: Projected Poverty for 2019-20 and 2020-21
Pakistan Poverty Rate - Historical Data
% Under US $5.50
Year Per Day Change
2018 84.50% 0.70%
2015 83.80% -2.70%
2013 86.50% -2.60%
2011 89.10% -1.30%
2010 90.40% -1.00%
2007 91.40% -1.00%
2005 92.40% 0.20%
2004 92.20% -3.80%
2001 96.00% 2.60%
1998 93.40% -1.30%
1996 94.70% -3.30%
1990 98.00% 0.30%
1987 97.70% 0.30%
 Number of
Rate
POVERTY Poor
(%)
Period
(million)
National Poverty Line 46.5 21.9 2018
International Poverty Line
78.1 in Pakistan rupee (2018) or US$2.15 (2017 PPP) 10.8 4.9 2018
per day per capita
Lower Middle Income Class Poverty Line
132.5 in Pakistan rupee (2018) or US$3.65 (2017 PPP) 87.5 39.8 2018
per day per capita
Upper Middle Income Class Poverty Line
248.7 in Pakistan rupee (2018) or US$6.85 (2017 PPP) 185.7 84.5 2018
per day per capita
Multidimensional Poverty Measure 16.7 2018

Sources: WDI for GDP, National Statistical Offices for national poverty rates, PIP
as of April 2023, and Global Monitoring Database for the rest.
Figure : Growth Rate and Poverty Nexus from 1998-2019 Figure : Projected Poverty (million)
International Organizations Reports
about poverty in Pakistan
1. Report of UNDP
According to a UNDP report, 65.5 percent population of Pakistan earns less than 2$ per
day.
2. SPDC (Social Policy Development Centre) Report
According to the SPDC, 88 percent of Baluchistan's population, 51 percent of Khyber
Pakhtunkhwa, 21 percent of Sindh and 25 percent of Punjab's population is prey to
poverty and deprivation.
3. World Bank Report
According to the 2011 statistics of the World Bank, due to the global financial recession
poverty ratio is increased especially of USA and the EU countries have pushed millions of
people around the world into deeper poverty. Almost 40% of 107 developing countries are
highly exposed to the poverty. Pakistan is ranked among the 43 countries who are most
exposed to poverty.
International Organizations Reports
about poverty in Pakistan
Asian Development Bank Report
According to the ADB report, poverty is spreading in Pakistan due to the rising
population, Pakistan's internal situation, agriculture backwardness, unequal
income distribution, defiance expenditure, and increase in utility charges and rise
in unproductive activities.
Pakistan's Planning Commission Report
Pakistan's Planning Commission (2011), poverty rate has jumped from 23.9 to
37.5 percent in the last three years. The commission has estimated that in 2007
there were 35.5 million people living below the poverty line but in 2010 their
number increased to over 64 million.
Causes/Reasons of poverty in Pakistan
 Overpopulation
 Unemployment
 Government bad Policies
 Corruption
 Inflation
 Smuggling
 lack of education
 Law and order situation
 Foreign Investment
Cont…
The main reason for poverty is the social dishonesty and irresponsible behavior
of people. Every one is trying to get rich. A shop keeper is ready to get whole
money from the pocket of customer. People doing jobs are not performing their
duties well. In society the man considered brave Or respectful who do not pay taxes
or continuously violate the laws. This irresponsible behavior continuously increase
and produces loss for the country.
Unemployment:
If there will be no jobs then the poverty will be created through
unemployment. The jobs are not present b/c the national industries are being
destroyed due to the energy crises which has resulted in the industries and the
international investors are not investing in Pakistan b/c of the terrorist activities
which have made their lives and business both in danger. If the people will not have
any earning or source of income that from where they will fulfill their needs, so due
to this specific reason the level of poverty in Pakistan is increasing day by day.
Cont…
 Inflation:
Inflation is one another reason which has contributed in raising the
poverty of the Pakistan. The prices of every product is increasing,
which is ever making the products out of the affordability rang of
the people, so when the people will be unable to buy the necessities
of the life due to high inflation this will results an increase in the
rate of the poverty on the nation, and that is what is happening in
Pakistan as we are experiencing one of the highest inflation rates in
the entire world.
 Effects of poverty in Pakistan
 Poor families experience much more stress than middle-class families.
Besides financial uncertainty, these families are more likely to be exposed to
series of negative events and "bad luck," including illness, depression, eviction,
job loss, criminal victimization, and family death.
 Homelessness, or extreme poverty, carries with it a particularly strong set
of risks for families, especially children. Homeless children are less likely to
receive proper nutrition and immunization. They experience more health
problems. Homeless women experience higher rates of low-birth-weight
babies, miscarriages, and infant mortality, probably due to not having access to
adequate prenatal care for their babies. Homeless families experience even
greater life stress than other families, including increased, family relationships,
and friendships.
Effects of poverty in Pakistan
Illiteracy Drug Abuse

Murder Theft
Solutions/Remedies to Overcome the
Poverty in Pakistan
 Promote industrialization
 Replacement of the traditional agricultural equipment with new scientific
equipment in order to increase the yield.
 Establishment of justice and equality
 Equal distribution of resources
 Merit should be the upshot strategy in all walks of life
 Elimination of discriminatory policies
 Controlling of inflation and other economic indicators and regulators.
 Developing investment friendly environment
Solutions/Remedies to Overcome the
Poverty in Pakistan
 Giving more feasibilities and concessions to the foreign investors
 Dumping extremism and feudalism
 Establishing more and more technical institute in order to get people
well skilled.
 Prevalence of education
 Provision of job opportunities
 Division of agricultural lands among tenants.
 Solutions/Remedies to Overcome the
Poverty in Pakistan
 Poverty will never end unless there are real solutions to end it; solutions based on
economic justice and political changes.
1. 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.
2. The guarantee of shelter, healthcare, education, food and drinking water as basic
human rights that must be provided free to all.
3. 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.
 Solutions/Remedies to Overcome the
Poverty in Pakistan
4. An end to private monopoly ownership over natural resources, with a
minimum of 51% local communal ownership in corporations, which control
such resources as well as the termination of intellectual property rights on
pharmaceutical drugs.
5. The cancellation of third world debt with no reciprocal obligations attached
and the payment of compensation to Third World countries for historical as
well as ecological debt.
6. An obligation of total transparency for any corporation with more than 100
employees and a 1% tax on all benefits distributed to shareholders of
corporations to create unemployment funds.
Solutions/Remedies to Overcome the
Poverty in Pakistan
7. The termination of tax havens around the world as well as free
flow of capital in developing countries.
8. An equal voting for developing countries in international
organizations such as IMF, World Bank, WTO, and the termination
of veto right for the permanent members of the UN Security
Counsel.
9. A commitment by industrialized countries to decrease carbon
emission by 50% over a ten-year period as well as reducing by
25% each developed country%u2019s consumption of natural
resources.
Steps taken by the government of
Pakistan to eradicate poverty
 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).
 Zakat.
Conclusion
 Leadership has got central importance here; with proper planning
and good government policies the problem can be solved. All they
need to do is to appoint competent and wall qualified economists to
help them tackle this issue and obviously their sincerity for its
solution cannot be ignored as well. A country economy is the
backbone of its country with its solution when it is saved many
problems will automatically. Alone leadership is not enough for its
solution. People of Pakistan have too got responsibility with equal
share. People need to cooperate fully with government and should
be sincere with their own country and put all their energies for
eradication of poverty.
SUMMARY
THANK YOU
References
 https://hdr.undp.org/content/2023-global-multidimensional-poverty-index-mpi#/indici
es/MPI
 https://www.macrotrends.net/countries/PAK/pakistan/poverty-rate
 The State of Poverty in Pakistan: PIDE Report 2021
 https://databankfiles.worldbank.org/public/ddpext_download/poverty/987B9C90-CB9F-4D93-
AE8C-750588BF00QA/current/Global_POVEQ_PAK.pdf
 https://www.pakistantoday.com.pk/2022/10/23/the-cycle-of-poverty-in-pakistan/
 https://tribune.com.pk/story/2437352/95m-pakistanis-live-in-poverty-world-bank
 https://www.adb.org/where-we-work/pakistan/poverty