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How to reduce poverty in Pakistan?

HOW TO REDUCE POVERTY IN PAKISTAN?


Syeda Hudaibiya1, Maheen Afzal2, Muhammad Tauseef3

Supervisor: Dr. Monir Ahmed

Abstract
This is a secondary and primary research based assignment. This assignment consists the
basic knowledge of poverty and economy of Pakistan in the introduction. Few historical based
information is also provided in the literature view and materials used to shape this assignment
are mention in the research methodology.
The assignment provides all the basic causes of poverty in Pakistan which are literally
analytical. Causes of poverty are may be few but they totally play complete role to provide
overview of the current economic condition of Pakistan due to poverty. Impact of poverty on the
economic development of Pakistan is also described separately to clarify the doubts and to give a
depth to this assignment.
In the end a conclusion is provided after re-reading and analyzing the whole assignment
and some recommendations to bring improvement in the economic development of Pakistan are
also provided. Therefore, to assure that this assignment is completed through authentic
knowledge, references are given at the last page of this assignment and necessary citations are
given where required.

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How to reduce poverty in Pakistan? 2

Introduction
The aim of this research is to analyse how to reduce poverty in Pakistan?. The nature and
trends of the poverty in Pakistan are discussed in this report. The vast fluctuations in levels of
poverty in Pakistan had been difficult to understand over the last 4 decades (Awan, Waqas &
Amir, 2012, p.n.d). The term poverty is caused in Pakistan due to the difference in consumption
and income differences of people. There has been analyzed a huge difference in poverty between
the era of 90’s and 2000’s. Poverty in any country causes backwardness in educational system,
industrial revolution, women rights, import and export etc (Saboor, 2004, p.n.d).

Literature Review
The historical researches on the how to reduce poverty in Pakistan? had proven the
changes and difficulties of poverty. According to the study of 1970’s to 1980’s era a large
number of economies were known to be managed by United States. It was narrated by Maqbool
Sial and Asma Noreen in 2015 that the changes in poverty estimations are causing due to the
urban-rural division in Pakistan with reference to economic strategies (Cheema & Sial, 2010,
p.n.d). This problem is measuredly undertaken regarding poverty issue in modern measures.
According to Rizwan, Ajmal and Azkar in 2015, poverty is also caused due to the phenomenon
migration from rural or under developed areas to the highly developed which creates completed
dimensions within the society (Anwar, 2009, P.157). In 2016, Abrar and Mohd Razani stated that
poverty is also caused due to non-access of education which causes shelter-less life, no money,
no standard of living and much more lack of rights through which the poverty rate of Pakistan
increases day by day (Cheema & Sial, 2010, p.n.d).

Research Methodology
This assignment is prepared through the critical and analytical research. The researches
taken for this assignment are both, primary and secondary as well. The materials from which a
pure non plagiarized research has been abstracted are magazines, internet resources, historical
books, past newspapers and articles are part of primary research of this assignment. On the
second hand, the secondary research which is conducted to make it an enhanced assignment
includes interviews of the top economists, graphical studies and statistical analysis.

Results
In the results it is known that very rapid changes had been and are still being occurred in
the economy of Pakistan. The poverty is decreasing no doubt whereas economy is increasing and
decreasing vice versa. This research is from the era of 1970’s which means from the era of
Zulfiqar Ali Bhutto and Zia ul haq till present which is the era of Imran Khan.

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How to reduce poverty in Pakistan? 3

Discussion
Causes of Poverty
There is a vast range of areas through which a high level of poverty occurs in Pakistan.
Some of the main reasons are stated below:

Corruption
The economy of any government highly depends on its government. If a government
becomes corrupted, no power on earth can save that country to tend into bad/worse poverty and
economic state. Corruption turns an economy of any country into a nightmare whereas it takes a
lot of time to recover or some countries fail to recover from it (Saboor, 2004, p.n.d).

Inflation
Inflation is one of the major causes of illiteracy in Pakistan which eventually causes
poverty increment day by day. Due to the higher demands of schools and high schools, people
are unable to send their children for education and therefore they fail to study and conquer jobs.
And those who have jobs also often fail to meet the higher demands of the market due to the
inflated environment within the country (Cheema & Sial, 2010, p.n.d).

Unemployment
Even those with degrees and high education roam on the streets of different areas, cities
and countries in the search of job for years and years. The unemployment rate is not depended
upon the education only but also on the job opportunities offered within the country (Saboor,
2004, p.n.d). Due to the high industrial revolution in Pakistan, machines have taken place of 80%
of the human labor which is the major cause of unemployment which discursively increases
poverty in Pakistan (Saboor, 2004, p.n.d).

Government’s Expenditures
It is estimated that a higher amount is spent on the living and security of government’s
higher grade employees than on the development and betterment of Pakistan. Due to the wrong
use of economy, Pakistan’s name in the list of countries with higher rates of poverty is leveling
up (Murtaza & Faridi, 2014, p.n.d). The expenditures on development are the basic right of a
country’s people so that they can get a chance to be educated and employed through which
poverty rate can eventually decrease easily (Murtaza & Faridi, 2014, p.n.d).

Inappropriate Policies

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How to reduce poverty in Pakistan? 4

The policies which government make may lack some consideration regarding to the
economy of Pakistan. Some factors for which policies re made such as some of the business
investing factors and stock exchange factors etc become the hurdle for people and increases
poverty rate of the country (Murtaza & Faridi, 2014, p.n.d).

Impact of Poverty on Economy of Pakistan


Poverty is the major curse in a country which becomes threat for the future of a country
as poverty breeds poverty. If poverty is not treated within a country that country can never step
towards development (Sial, Noreen & Awan, 2015, p.686). Poverty means no money; no money
means no education, healthy eating and nutrition which eventually means that the growth of
children from poor families are at higher risk of unemployment and diseases (Sial, Noreen &
Awan, 2015, p.689). The opportunities to increase literacy rate, business rate, industrialization
etc become very low and therefore, the future of that country becomes impoverished (Sial,
Noreen & Awan, 2015, p.693).

Conclusion
After the study of above assignment, it is clear that the economy of Pakistan is
continuously fluctuation majorly cause of poverty. The main reasons through this assignment are
known to be ‘Lack of education’ and ‘Unemployment’ then later on other factors such as
inflation, inappropriate policies of a government, corruption, foreign investments and much
more; which are the sub reasons of causing illiteracy and unemployment in Pakistan. Due to the
stated reasons, the poverty is being like a family to Pakistan and growing with it. It is also a
hurdle between Pakistan and its development.

Recommendation
After analyzing the above assignment’s key points, it is recommended that government
has to take few steps as economy of Pakistan is dependent on the government and poverty can be
diminished by government. By reducing inflation, providing free education and increasing
employment opportunities, government can easily help Pakistan to step towards sufficiency.
Government should also say no to corruption. Additionally, people should put more and more
efforts in educating their children. Men and women both should have a right to work and earn for
their family an education of their children. Those who are wealthy should take steps in providing
free education to people who cannot afford it. By implementing such steps in real, poverty can be
defeated and economy of Pakistan might become better than before.

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How to reduce poverty in Pakistan? 5

References
Anwar, T. (2009). Measuring Inequality of Consumption and Opportunities In Pakistan: 2001-02
and 2004-05. Pakistan Economic and Social Review, 47(2):157-181.

Awan, M. S., Waqas, M., and Amir, A. (2012).Multidimensional Measurement of Poverty in


Pakistan.University Library of Munich, Germany.

Cheema, A. R., and Sial, M. H. (2010). Estimating the contributions of growth and redistribution
to changes in poverty in Pakistan. Pakistan Economic and Social Review, 48(2):279-306.

Murtaza, G. and Faridi, M.Z., 2014, December. Causality Linkages among Energy Poverty,
Income Polarization, Income Poverty and Growth: A System Dynamic Modeling
Approach. In 30th AGM & Conference.

Saboor, A. (2004). Agricultural growth, rural poverty and income inequality in Pakistan: A Time
series analysis. Department of Agricultural Economics, University of agriculture,
Faisalabad, Pakistan.

Sial, M.H., Noreen, A. and Awan, R.U., 2015. Measuring multidimensional poverty and
inequality in Pakistan. The Pakistan Development Review, pp.685-696.

Satterthwaite, D., Reid, H. and Bass, S. eds., 2013. Reducing Poverty and Sustaining the
Environment: The politics of local engagement. Routledge.

Abbas, S.K., Hassan, H.A., Asif, J. and Zainab, F., 2018. How Income Level Distribution
Responds To Poverty: Empirical Evidence From Pakistan.

Johnson, S. and Rogaly, B., 1997. Microfinance and poverty reduction. Oxfam.

Slddiqui, R. and Kemal, A.R., 2006. Remittances, trade liberalisation, and poverty in Pakistan:
The role of excluded variables in poverty change analysis. The Pakistan Development
Review, pp.383-415

Khan, H., Inamullah, E. and Shams, K., 2009. Population, environment and poverty in Pakistan:
linkages and empirical evidence. Environment, development and sustainability, 11(2),
pp.375-392.

Squire, L., 1993. Fighting poverty. The American Economic Review, 83(2), pp.377-382.

Sial, M.H., Noreen, A. and Awan, R.U., 2015. Measuring multidimensional poverty and
inequality in Pakistan. The Pakistan Development Review, pp.685-696.

Khan, A.U., Saboor, A., Hussain, A., Sadiq, S. and Mohsin, A.Q., 2014. Investigating
multidimensional poverty across the regions in the Sindh province of Pakistan. Social
indicators research, 119(2), pp.515-532.

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