Poverty Alleviation

Assignment of Economy of Pakistan Topics: Poverty Alleviation Unemployment Debt Issues

Submitted TO: Miss Imrana Asad Submitted By: Humayun Khalid Qurashi B.com (Hons) 3rd Semester Roll # 04/Regular hkqurashi@gmail.com
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Poverty Alleviation

Department of Commerce

Table of Contents

Poverty
Sr.# 1 2 3 4 5 Topics Preface Introduction Progress in 2000-05 Role of Government References Page. # 2 3 4 5 6

Poverty Alleviation

Preface
This section of assignment includes on the Poverty Alleviation, its situation in Pakistan, progress is 2000-2005 and what is the role of government in taking measure to reduce the poverty. *******************************************

Poverty Alleviation

Introduction
Poverty alleviation has been one of the foremost objectives of development programs in many developing countries of the world for the last several decades. A considerable research has been carried out on the issue of poverty alleviation and its long run social and economic effects in developed as well as in developing countries. Since the issue of poverty alleviation is core on the agenda of all international organizations, the three international reports published by World Bank (2000), IFAD (2001) and ILO (2003) by the start of this century could be observed. Since poverty alleviation is considered as an important issue of economic development in the literature, attempts have been made to alleviate poverty by increasing the level of income of households. It has also been the declared goal of every government policy in Pakistan. Nevertheless, most of the efforts have been made to alleviate poverty in Pakistan at macroeconomic level in terms of sustainable economic growth, facilities of job creation by improving the functioning of labor market, provision of high quality health and education services, provision of infrastructural facilities and safety nets in times of natural and financial crisis. However the least emphasis has been placed at micro or regional level poverty alleviation. A large number of studies have also been conducted in Pakistan on poverty. Some of them have either concentrated more on counting numbers below the poverty line at national, provincial level, or have explained poverty with reference to variables. The present study is the continuity of the previous studies with an emphasis on a different set of variables and study area at micro level. However some significant studies conducted on poverty alleviation are reviewed as follows.

Situation in Pakistan
For looking Pakistan in this scenario we have to focus on the point that what is the magnitude and nature of poverty is prevailing in Pakistan; and who is mostly affected with poverty what are the recent trends and reasons of poverty in Pakistan. So my research question is how we can alleviate poverty which is linked our household pursuits and income distribution at the same time. 4

Poverty Alleviation
An analysis of the process of poverty creation in the urban and rural areas of Pakistan shows that poverty reproduction is rooted in the structure of the specific growth process in Pakistan. Consequently, poverty alleviation cannot be expected to occur simply as a trickle down effect of economic growth. The fact that the process of poverty reproduction is located in the structure of the growth process in Pakistan is further illustrated by the fact that the intensity of both urban and rural poverty is greater in the Punjab which has a relatively higher per capita income, compared to Baluchistan which has a relatively much lower per capita income. Poverty has not only had a differential regional impact but has also affected children and women relatively more than adult males. The main findings indicate that the high food prices are undermining poverty reduction gains, as food expenditures comprise a large share of the poors total expenditures and food price hike has severely eroded poor household purchasing power. The poorest households need to spend 70 percent or more of their income on food and their ability to meet most essential expenditures for health and education is severely compromised. In addition, the diminished purchasing power has severely impaired capacity of poor households to seek health care, and children education, particularly for girls. This situation has further aggravated by falling nutrition levels, particularly for already malnourished children. Various forms of poverty prevail in Pakistan. Deprivation with respect to income or consumption is one of the key aspects of poverty. Extreme poverty and hunger exist when income or consumption of an individual falls short of attaining minimum food and non-food need required to perform daily activities of life. The level of income or consumption of an individual reflects its social and economic status in a society. However, income of an individual is largely dependent upon its capabilities. Different individuals have different capabilities. Capabilities of individuals for earning a decent living are influenced by unequal opportunities inherent in socio-economic structure of a society. To eradicate extreme poverty and hunger, it is thus important to build up human capabilities that empower individuals to face equal opportunities to earn a decent living.

Poverty Alleviation
Progress in 2000-05
Status and Trends Based on the last Pakistan Integrated Economic Survey (PIHS) 2000-01, the official poverty line is estimated at Rs748 consumption expenditure per month per capita. This threshold is derived by valuing the minimum required calorific intake of 2350 calories per capita with a minimum expenditure required for non-food needs. Poverty estimates based on the official poverty line suggest that the poor accounted for 32.1 percent of Pakistans population in2000-01 (Figure 1). Poverty estimates show a higher incidence of poverty in Pakistan in rural areas. In 2000-01, rural and urban poverty is estimated at 38.99 percent and 22.67 percent, respectively.

Role of the Government The sharp rise in international oil and food prices and the global financial crisis not only adversely impacted the macroeconomic indicators in Pakistan but also imposed social costs. Recognizing the urgent need to protect the poor and the vulnerable, the Government of Pakistan (GoP) launched: Benazir Income Support Programme (BISP) in 2008 Social mobilization Child Support Programme (CSP) 6

Poverty Alleviation
Community Investment Fund (CIF) Tractor Subsidy Scheme Peoples Works Programme Pakistan Bait-ul-Mal (PBM)

disbursed during 2008-09 with an estimated 2186 thousand beneficiaries. Microfinance provides slow income a

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Data References
Pakistan Economic Survey 2008-2009 Pakistan Millennium Development Goals Report Web sites