

 PRESENTED TO : Mam Mubashira Ghori



Topic : Pakistan on the

Track of Poverty
 
 MEMBERS
• Faisal Raja FA09-BBA-028
• Syed Muhammad Hilal FA09-BBA-090
• Safdar Saeed FA09-BBA-063
• Nasir Raja FA09-BBA-060
• Amir Qasim FA09-BBA-050
• Abdul Rahman FA09-BBA-
001
• Asim Ali FA09-BBA-112
• Asim Javaid FA09-BBA-016
• Usman Raja FA09-BBA-098
 Poverty

Poverty refers to the condition of not



having the means to afford basic

human needs such as clean water,
nutrition, health care, education,
clothing and shelter.
E d u ca tio n
S ta b le e m p lo ym e n t •
se cu rity
m in im u m h o u sin g sta n d a rd s
 Poverty Rate in
Pakistan
 Poverty rate jumped from
23.9% to 37.5% in three
years after severe
economic shocks hit
Pakistan last year.


 Although the middle-class

has grown in Pakistan to
35 million, nearly one-
quarter of the
population is classified
poor as of October
2006.


 As of 2008, 17.2% of the

total population lives
below the poverty line,
Causes of Poverty in
Pakistan
 Government Bad Policies.
 Government extra expenses.
 Corruption.
 Overpopulation.
 Unemployment.
 Lack of Education.
 Inflation.
 Law and Order situation.
 Decline in Foreign investment.
 Role of West and IMF .
Government Bad Policies
• Government is not well aware of present conditions of
country. The policies of government are base on the
suggestions of officials which do not have awareness
about the problems of a common man.
•
We have collected some bad policies of Pakistani Government

which are given below

• Pakistan’s Gold and Copper reserves sold in pennies,
minimum worth of those reserves was $65bill which is
sold in only $21bill
•
• Pakistan’s UPS and batteries import is $10 Billion, but we
require only $7 Billion on Kala Bagh Dam Project by which
we can generate 7500MW electricity
 Continued……
Government is unable to manage the departments and
country has low reserve assets. So the meet the requirements
some companies run by government are sold to foreign
investors
•
• Pakistan steel mill cost’s Rs.300 Arab but it is sold in Rs.21
Arab.
•
• Habib Bank Ltd. Cost Rs.140 Arab but sold in Rs.14 Arab.
•
• PTCL cost Rs.700 Arab but sold in only Rs.120 Arab

 Govt. Extra Expenditure
 We have collected some Facts and Figures about High
Expense of Govt. Officials which are given below:
•
• 500000000 (5 Crore) per year is spend on the security of
President and Prime minister
•
• Monthly expense of 1 minister = 30 Lacs
 Monthly expense of 96 minister = 288000000 (28 Crore
80 Lacs)
 Expence of 96 ministers per year = 3 Arab, 45 Crore, 60
Lacs
•

•
•
 Continued……
• National Assembly + Senate = 440 Members
 Provincial Assembly = 636 Members
 Total = 1076 Members


Every member have luxury and expensive vehicle, none of



them is car less and also none of them is going alone to his
office, they Have 4 to 8 vehicles security squad


 So 1076 x 4 = 4304 cars at least!

 If each car consumes fuel of 500 daily then :
 4303 x 500 = 2152000 per day
 2152000 x 30 = 64560000 per month
 64560000 x 12 = 77 Crore, 47 Lacs, 20 Thousands rupees
per year,


This is only the estimate of fuel, now you can think yourselves


about their eating expense, their salaries, their visits etc.

 CORRUPTION

• It is the condition when there is not morality and every one

is trying to earn more and more by using fair and unfair
means.
• Only one relationship that is exists in society is money. One
has to pay a heavy cost to get his right.
• Law and order conditions are out of control and institutions
are failed to provide justice to a common man.
•
In this whole scenario some corrupt people has been

occupying the resources and common man is living in

miserable conditions, which brings more poverty in the state.
 Inflation
In fla tio n is a rise in th e g e n e ra l
le ve lo f p rice s o f g o o d s a n d
se rvice s.

Po ve rty in Pa kista n is in cre a sin g
d u e to th e cu rre n t la ye r o f
In fla tio n .

In fla tio n d e cre a se th e
p u rch a sin g p o w e r o f so cie ty ,
p e o p le s a re u n a b le to fu lfill
th e ir n e e d s a n d re su lts in
stre n g th e n th e Po v e rty ra te .
 Smuggling
• Pakistan is recently facing
the shortage of sugar
and wheat due to the
smuggling these items to
neighboring countries.
•
• Pakistan is the 7th largest
wheat producing country.
Total wheat consumption
of Pakistan is 20 million
tones, while production
of wheat last year was
23 million tones.
•
• Similarly Pakistan is 4th
largest sugarcane
producing country but
facing the swear
 Overpopulation
 The estimated Population of
Pakistan in 2010 is over
169,478,000, making it
the world's sixth most-
populous country.

 About 20% of the
population lives below
the international poverty
line of US$1.25 a day.

 such a large population will
undermine efforts being
undertaken to reduce
poverty and to improve
the standards of living of
the populace.
 Unemployment
• “A person is unemployed if he
or she did not worked
during the preceding week
but made some effort to
find working the past four
weeks”
•
• Unemployment rate in 2009
was 7.40 which is doubled
in 2010, the current rate is
15.20%
•
• When peoples are unemployed
they consume the resources
but are unable to contribute
in overall economy, which
results in poverty.
 Lack of Education
T h e lite ra cy ra te o f Pa kista n is
ve ry lo w . M o st o f p e o p le d o n o t
h a ve a n y co n ce p t a b o u t th e
m o d e rn e a rn in g so u rce s.

M o st p e o p le a re u n a b le to a d o p t
te ch n o lo g y fo r th e ir b u sin e ss
n e e d s, th a t’ s w h y b u sin e ss d o
n o t m e e t in te rn a tio n a l
sta n d a rd s a n d re su lts a s
d e cre a se in re ve n u e w h ich le a d
th e so cie ty to p o o r fin a n cia l
co n d itio n s
Law and Order Situation
T h e re a re lo t o f p ro b le m s
re g a rd in g la w a n d o rd e r.
Te rro rist a tta cks cre a te
u n ce rta in ty in sto ck
m a rke ts a n d p e o p le
e a rn in g fro m sto ck a re
g e ttin g lo ss d u e to w h ich
th e w h o le co u n try fa ce s
u n ce rta in in cre a se in
co m m o d ity p rice s.

Pa kista n ifirm s a re u n a b le to
sig n a g re e m e n t w ith
fo re ig n in ve sto rs d u e to
th e p re va ilin g la w a n d
o rd e r situ a tio n .
 Foreign investment
T h e FD I h a s p la ye d a vita lro le
in th e e co n o m ic g ro w th o f
Pa kista n .

Po litica lin sta b ility , te rro rist
a tta cks, p o w e r, g a s a n d
w a te r sh o rta g e a n d w e a k
la w o rd e r co n tro lh a s le d to
fa llin g tre n d in FD I.

T h e se a re th e m a jo r re a so n s
d u e to w h ich th e fo re ig n
in ve sto rs a re n o t in te re ste d
in in ve stin g th e ir ca p ita lin
Pa kista n . T h e a fte r m a th
a lw a ys b e fa ce d b y p o o r
p e o p le .
 Role of West and IMF
• The International Monetary Fund (IMF) is the international
organization that oversees the global financial system by
following the macroeconomic policies of its member
countries.
• IMF loans usually come with conditionalities, restrictions
and requirements imposed by IMF on the borrowing
country.
• Pakistan is also seeking the help from IMF on very
dangerous conditions which are causing more poverty in
the country. Some of the conditions are Listed Below:
– Put an end to subsidies on all products.
– Taxes should be increased.
– Govt. expenditure should be stop.
– cut military spending by almost a third.
– Pakistani currency will be devalued.
–
 Solutions to Remove
Poverty
–
– Govt. should make the Policies in Favor of
Pakistan, and Pakistani people.
– Govt. should not waste national assets and
utilize them to remove the poverty
– Corruption should put to an end and
Judiciary should take some action against
corrupt people.
– Population rate should be controlled.
– Govt. should make policies to provide
employment to the Labor force.

 Continued
–
– Smuggling should be stop by enforcing the
Law and Order.
– Law and order situation must be improved
to bring back the Foreign Direct
Investment (FDI).
– Govt. should think first about the
healthcare, education, energy crisis
instead of Defense and Armory.
– We should relay on ourselves instead of IMF.
