Submitted by:

Hafiza Ayesha Shahid

Naureen Naz
Areeba Moin
Huba Moin

Preface

All praise be to Allah,

Lord of the world, the
Beneficent, and the most
Merciful, and every grace
of Allah be on his Prophet
Mohammad (p.b.u.h) who
is always a source of
knowledge and guidance
for humanity as whole
and also thanks of our
Pak.Studies teacher Mam
Faiza for assigning this
assignment for us

TABLE OF CONTENT
1. DEFINITION

OF

POVERTY_______________________________________01
2. THE ECONOMY

OF

PAKISTAN___________________________________02
3. POVERTY

IN

PAKISTAN__________________________________________04
4. POVERTY
RATIO

IN

PAKISTAN__________________________________07
5. MAIN
CAUSES
OF
POVERTY

IN

PAKISTAN______________________07
6. POVERTY
IN
PAKISTAN

AND

ITS

SOLUTIONS__________________09
7. CONCLUSION________________________________________________
______10
8. BIBLOGRAPHY_______________________________________________
______11

DEFINITION OF POVERTY
The word poverty derived from Latin word pauper means poor. Poverty refers to
the condition of not having the means to afford basic human needs such as clean
water, nutrition, health care, clothing and shelter. Poverty is the condition of having
fewer resources or less income than others within a society or country, or compared
to worldwide averages. Poverty is one of the major social problems which Pakistan is
facing. It is one of the most important and sensitive issue not only for Pakistan but
for the whole world. Poverty can cause other social problems like theft, bribe,
corruption, adultery, lawlessness, injustice etc.

It is the fundamental duty and responsibility of the country to fulfill the basic
needs of its people. Basic needs of man comprises of shelter, food and
clothing. When these needs are not fulfilled they bring about problems
termed as socio-economic problems. Pakistan has also been suffering from
these problems. The real issue is not the presence of these problems in the
society. But the extent to which they are being paid attention and solved.
When these problems are not met timely the results in the form of deviant
behavior, drug abuse, smuggling, corruption, poverty, illiteracy and many
other social evils.

THE ECONOMY OF PAKISTAN

The economy of Pakistan is the 26th largest in the world in terms of

purchasing power parity (PPP), and 44th largest in terms of nominal GDP
even though the country is sixth most populous in the world. As Pakistan has
a population of over 186 million (the world's 6th-largest), thus GDP per
capita is $3,149 ranking 140th in the world. Pakistan is a developing country
and is one of the Next Eleven, the eleven countries that, along with
the BRICs, have a potential to become one of the world's large economies in
the 21st century. However, after decades of war and social instability, as of
2013, serious deficiencies in basic services such as railway transportation
and electric power generation had developed. The economy is semiindustrialized, with centers of growth along the Indus River. Primary export
commodities include textiles, leather goods, sports goods, chemicals and
carpets and Rugs.
Growth poles of Pakistan's economy are situated along the Indus River , the
diversified economies of Karachi and major urban centers in the Punjab,
coexisting with lesser developed areas in other parts of the country. The
economy has suffered in the past from internal political disputes, a fastgrowing population, mixed levels of foreign investment Foreign exchange
reserves are bolstered by steady worker remittances, but a growing current
account deficit driven by a widening trade gap as import growth outstrips
export expansion could draw down reserves and dampen GDP growth in the
medium term. Pakistan is currently undergoing process economic
liberalization with includes privatization of all government corporations,
aimed to attract foreign investment and decrease budget deficit. In 2014,

foreign currency reserves crossed $15 billion which has led to stable outlook
on the long-term rating by Standard & Poor's.

Inflation
Per Capita
Index
Income
(2000=100
(as % of USA)
)

Yea Gross Domestic

r
Product

US Dollar
Exchange

196
20,058
0

4.76 Pakistani
Rupees

3.37

196
31,740
5

4.76 Pakistani
Rupees

3.40

197
51,355
0

4.76 Pakistani
Rupees

3.26

197
131,330
5

9.91 Pakistani
Rupees

2.36

197
283,460
8

9.97 Pakistani
Rupees

21

2.83

198
569,114
5

16.28 Pakistani
Rupees

30

2.07

199
1,029,093
0

21.41 Pakistani
Rupees

41

1.92

199
2,268,461
5

30.62 Pakistani
Rupees

68

2.16

200
3,826,111
0

51.64 Pakistani
Rupees

100

1.54

200
6,581,103
5

59.86 Pakistani
Rupees

126

1.71

201
4

100.55 Pakistani
Rupees

195

POVERTY IN PAKISTAN
Poverty has been one of the biggest problems that Pakistan faces today. It is
rightly said that poverty anywhere is a threat to prosperity everywhere.
Nearly 60 per cent of the population of Pakistan lives in villages. According to
an analysis, poverty has increased roughly from 30% to 40% during the past
decade.

It means that 40 per cent of the countrys population is earning their

livelihood below the poverty line. In such condition people are depressed of
their basic necessities of life. Proper education and medicine are becoming
distant from them. They are forced to think of their survival only of due to
poverty and unemployment, parents instead of sending their children to
schools, prefer child labor for them. They make them do so to support their
family and use them as earning hands from the early age. Every third
Pakistani is living his life below the poverty line. This is very shocking
revelation for all of us. About 58.7 million out of 180 million Pakistanis are
living below the poverty line.
SDPIs study on poverty shows that every third Pakistani is living his life
below the poverty line. This is very shocking revelation for all of us. About
58.7 million out of 180 million Pakistanis are living below the poverty line.
This below the poverty line population is living 52% in Baluchistan, 33% in
Sindh, 32% in KP and 19% in Punjab. This provincial wise detail shows that
Baluchistan, Sindh and KP are facing brunt of poverty and mostly in rural

remote areas of their provinces. Punjabs poverty is less but still alarming.
Poverty requires deliberate measures and paradigm shift to invest on human
development, said Sustainable Development Policy Institute (SDPI) Executive
Director Dr Abid Qaiyum Suleri. He said that poverty should not remain
merely a number game for government. Referring to absolute poverty in
conflict ridden Baluchistan and Fata, he said that when poverty and food
security take an identity be it ethnic, religious or provincial, it leads to
disintegration and destruction of social fabric of society. According to SDPI
findings of the report 33 per cent of household are living below the poverty
line in Pakistan with numbers amounting to 58.7 million people. Baluchistan
is the poorest of all provinces with 52 per cent population living below
poverty line, followed by Sindh with 33 per cent, KP with 32 per cent and
Punjab with 19 per cent. Refereeing to 46 per cent rural poverty compared
with 18% urban poverty, report identifies stark inequalities over the
incidence of poverty across regions, between provinces and within each
province. Poorest of the poor districts in Baluchistan and Sindh are
demanding attention of the government. Pakistans increase in poverty is
due to manifold reasons. Pakistans social indicators are at declining stage
since three disasters (Earthquake in 2005 and then two floods of 2010 and
2011) attacked Pakistan. After last floods, Pakistan has started gradual
recovery! The extent of flood havoc is so severe that it has shaken very
fabric of Pakistani economy & World called it mother of all disasters. In first
decade of the 21st century Pakistan has faced many disasters and still
facing. Start from 9/11, severe earthquake in 2005 and then floods of 2010
and 2011. All have a greater impact on our socio-political and economic
issues of Pakistan. In all these issues common citizen of Pakistan has
suffered. Pakistan is very slow in achieving millennium Development Goals
due to all these natural disasters.
These disasters of decade have left a mark on Pakistani society. Poverty has
been increased manifold in the first decade of the 21st century. Millions of
Pakistanis trapped in poverty due to three disasters of the decade. Beside
this governments weekly increase of fuel prices have all add to the misery of
the poor masses. This increase in poverty shows that Pakistan needs a
Master plan to deal with poverty otherwise these young poor masses will find
out other ways to address their poverty! Pakistanis capabilities of earning
have been decreased in first decade of the 21st century due to disasters.
After three disasters of the decade in which millions of Pakistani society has
faced unending troubles, government should think about new tools of
measuring poverty. It is since three decades that tools of measuring poverty

are remaining same. In wake of three disasters tools of measuring poverty

can be different. Following are few suggested tools which government can
use for the measurement of poverty.
Since 2001 poverty survey of Pakistan, we have never seen any government
figures about poverty. They stuck up at old figures before three disasters.
SDPI has chosen poorest of the poor districts in Sindh and Baluchistan which
shows increase in poverty. According to World Bank report of 2010-2011
Pakistans poverty reached up to 70% after disasters. Government has never
confirmed these figures and nor denied about this. If SDPI and World Bank
figures are correct then it shows that 120 million Pakistani souls are under
poverty trap (below the poverty line), which is highly alarming situation.
Three important organizations like Pakistan Poverty Alleviation Fund, Benazir
Income Support Program and Rural Support Programs are remaining silent on
increase in poverty figures! Benazir Income Support Program with the help of
Rural Support Program started a Poverty Scoring Card about three years
ago. Still no any result came out of this Poverty Scoring Card? All these
programs are using huge government and donor funding on Poverty
alleviation (according to one figure PPAF has 22 billion rupees endowment
funding provided by the Govt. of Pakistan) but still poverty is increasing,
Why? I think Social Audit of these three huge funding programs is required
that how much impact these programs have created on poor Pakistani
society? An independent Social Audit by third party is required? We have
Pakistan Poverty Alleviation Fund, Benazir Income Support Program and Rural
Support Program (total eight rural support programs are working in Pakistan)
currently working in Pakistan. They all have huge donor and government
funding.

If Pakistani government like to attend Millennium Development Goals of

halving poverty by 2015, then they must take urgent measures and survey
actual poverty with new indicators and declare result so that donors, INGOs,
CSOs and other development actors involve themselves and address poverty
according to the need of the people.

POVERTY RATIO IN PAKISTAN

In 21st century Pakistan faces serious issue which lead in increasing of
Poverty level, issue of 9/11, then Earth quake in 2005 effect million of
people, two continuous floods in the year of 2010 and 2011 contribute a lot
in increasing poverty in Pakistan.

SDPIs study on poverty in Pakistan revealed that every third Pakistani is

living his life below the poverty line. Baluchistan which is considered as the
land of mineral is facing a serious issue of poverty, 52 % of total population
in Baluchistan living below the poverty line, 33 % of sindh population are
living below the poverty line followed by KPK having 32 % ratio. Punjab which
is considered as the urban area also having 19 % population which are living
below the poverty line

MAIN CAUSES OF POVERTY IN PAKISTAN

There are so many core reasons which have contributed in the increase in
poverty in Pakistan amongst which few of them are

being listed below;

1. Government Policies
Government is not well aware of present conditions of country. The policies of
government are based on the suggestions of officials which do not have
awareness about the problems of a common man. After implementation of
the policies do not get effective result. After the failure of one policy,
government does not consider its failure and announces another policy
without studying the aftermaths of last one. Heavy taxes and unemployment
crushes the people and they are forced to live below poverty line. The
suitable medical facilities are not provided to people and they are forced to
get treatment for private clinics which are too costly.

2. Overpopulation
Pakistan is facing the dragon of overpopulation. The growth rate of Pakistan
is very high and is among the highest in the world. Since 1947, the
population has become more than triple. Pakistan is almost touching 180
million marks. Population expansion has been a real issue of concern for all
governments. With limited resources it is very difficult to control the growing
population. There is a great economic disparity among the people. Poor are
committing suicides out of hunger while rich are busy in buildup more and
more wealth. These social problems directly affect the masses. The
massively increasing population has almost outstripped the resources in
production, facilities and in job opportunities.

3. Unemployment
Pakistan is poorly faced with the problem of unemployment. The existing
unemployment rate is 15%. Thousands of young doctors, engineers and
other educated people are out of job. There are no opportunities for youth to
utilize their capabilities or abilities in right direction. Pakistan is facing the
problem of brain drain due to unemployment because we are unable to
utilize their precious hands in the progress of the country.

4. Poor governance
Owing to poor governance, the government is losing control over law and
order situation. When individuals put themselves in front of institutions, they
set a bad example. Suicide attacks, target killing, robbery and other crimes
have become norm of the day. And government seems helpless in this
regard.

5. Large Scale Import

The import of Pakistan is greater than export. Big revenue is consumed in
importing good every year, even raw material has to import for industry. If
we decrease import and establish own supply chains from our country
natural resources the people will have better opportunities to earn.

6. Lack of Education
Level of Education in Pakistan is almost near to nothing that is why literacy
rate of Pakistan is very low, The people of Pakistan do not have the basic
concept of the modern earning sources which is being used by the modern
world.

We did not even access to the modern ways of education. But now the
government authorities and the some educational NGOs are working on this
matter to remove the education hurdle among the people of Pakistan so they
also have access to the modern educational techniques.

7. Law and Order

There are lot of problems regarding law and order. Terrorist attacks create
uncertainty in stock markets and people earning from stock are getting loss
due to which the whole country faces uncertain increase in commodity
prices.

POVERTY IN PAKISTAN AND ITS SOLUTIONS

if you are curious about knowing Causes of Poverty in Pakistan and its
Solutions with complete facts and figures then you are at the right place as
the cause of poverty is not depend upon a single factor or a reason so it is
very important issue to discuss and resolve. This poverty rate is also
effecting the economy rate of Pakistan because it is also a main source of
causing inflation in Pakistan. Poverty cannot define in a single way as
poverty is hunger, It is lack of Shelter, its like a disease but person is not
being able to go to a doctor any how, Poverty is when our children cannot go
to school because of the huge fee, it is that educated person do not have
jobs, it is the fear of the future that what to do. Hence poverty is every where
in Pakistan that are cutting our roots and if it this issue is not resolve early
then it may cause a huge problem for the whole Nation. The situation in
Pakistan is that the rich become more richest and poor becomes more
poorest.

Poverty in Pakistan did not even has a single face as is changing its faces
from place to place and time to time so we can simply say that poverty is like
a situation but everyone is trying to escape form that situation so that they
could have enough to eat, Have proper shelter to live, Can have easily
access to education, healthy environment and protection of their lifes. So
that is why if you want to know exactly that how we can reduce the poverty
in Pakistan and what we have to do is then first of all we have to study the
poverty by going to its roots. We have to measured its causes and should
experience the pain of poor people. As we mentioned above that it does not
have a proper shape or dimention so we have t study this through a variety
of indicators that could be income, social, vulnerability to risk social access.
That is why in this article we come to know the main causes and its solution
of Poverty in Pakistan.
Pakistan is an under developing and poor country and that is a fact, no one
can deny this fact because the economy of Pakistan is facing fluctuation
these days and the main cause behind this ups and downs is that the
political leaders of Pakistan is not much aware of the global system and the
ways to lead their country to the progressive way. This is their bad policies
that we are facing this situation now as the policies are nothing but a failure
excuse but this leads us and our nation into the miserable condition. On the
other hand if we look from other dimension then the major cause of the
crime and social disorder increasing day by day in Pakistan is also due to the
Poverty rate in Pakistan.

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.

BIBLOGRAPHY
http://ilm.com.pk
http://www.geotauaisay.com
http://www.cssforum.com.pk
www.pakistanicommunity.net
www.currentaffairspk.com
www.wekipedia.com