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Project Report
On
Poverty in Pakistan
PROGRAM= ACCOUNTING AND FINANCE
(Semester-IV)
PRESENTED BY = Uzair Haider
University of Central Punjab
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Table of Content
INTRODUCTION……………………………………………………………………………………………………………………………………1
Typesof poverty……………………………………………………………………………………………………………………...............1
Spatial distribution of poverty......................................................................................................4
Poverty and gender......................................................................................................................5
Female labor rates in Pakistan are exceptionally low. ................................................................5
Environmental issues...................................................................................................................5
Causes of Poverty......................................................................................................................6
Unemployment in Pakistan ........................................................................................................13
Unemployment Rate in Pakistan 2014-2015 .............................................................................14
Growth of Population: .............................................................................................................15
Poor Education System:.........................................................................................................15
Violence and Terror Activities:................................................................................................15
Energy Crisis:..........................................................................................................................15
High Age of Retirement: .........................................................................................................16
Solution of Unemployment in Pakistan: .................................................................................16
Overpopulation in Pakistan............................................................................................................16
10 Worst Natural Disasters in History of Pakistan ........................................................................18
Global experience……………………………………………………………………………...19
Comparison Poverty Status 2001and 2004-05: Survey Evidence…………………………………....19
Conclusion………………………………………………………………………………………21
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Poverty IN PAKISTAN
In Islam, poverty is a great curse and unfortunate. Our beloved Prophet Hazrat
Muhammad (PBUH) also prayed to Allah to save him (PBUH) from Poverty. Poverty is
the state in which one lacks a usual or socially acceptable amount of money or material
possessions. Poverty is said to exist when people lack the means to satisfy their basic
needs. [1]
Poverty in Pakistan has fallen dramatically, independent bodies supported estimates
of a considerable fall in the statistic by the 2007-08 fiscal year, when it was estimated
that 17.2% of the total population lived below the poverty line. The declining trend in
poverty as seen in the country during the 1970s and 1980s was reversed in the 1990s
by poor federal policies and rampant corruption. This phenomenon has been referred to
as the "poverty bomb". In 2001, the government was assisted by the International
Monetary Fund (IMF) in preparing the Interim Poverty Reduction Strategy Paper that
suggests guidelines to reduce poverty in the country
.
Pakistan fares better than India and Bangladesh on most poverty markers such as the
UN MPI index and its poverty rate is below those nations.
As of 2009, Pakistan's Human Development Index (HDI) is 0.572, higher than that of
nearby Bangladesh's 0.543, which a part of the country itself was formerly. Pakistan's
HDI still stands lower than that of neighboring India's at 0.612.
According to the HDI, 60.3% of Pakistan's population lives on under $2 a day,
compared to 79% in nearby India and 81.3% in nearby Bangladesh, the lowest rate in
South Asia after Sri Lanka and some 28.6% live under $1 a day, compared to 24.9% in
India and 49.6% in Bangladesh.
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Wealth distribution in Pakistan is highly uneven, with the top 10% of the population
earning 27.6% and the bottom 10% earning only 4.1% of the income According to the
United Nations Human Development Report, Pakistan's human development indicators,
especially those for women, fall significantly below those of countries with comparable
levels of per-capita income. Pakistan also has a higher infant mortality rate (88 per
1000) than the South Asian average (83 per 1000).
Types of poverty
a. Absolute Poverty
It is the extreme kind of poverty involving the chronic lack of basic food, clean water,
health and housing. People in absolute poverty tend to struggle to live and experience a
lot of child deaths from preventable diseases like malaria, cholera and water-
contamination related diseases. This type is usually long term in nature, and often
handed to them by generations before them. This kind of poverty is usually not common
in the developed world.
b. Relative Poverty
This kind is usually in relation to other members and families in the society. For
example, a family can be considered poor if it cannot afford vacations, or cannot buy
presents for children at Christmas, or cannot send its young to the university. Even
though they have access to government support for food, water, medicine and free
housing, they are considered poor because the rest of the community have access to
superior services and amenities.
c. Situational Poverty (Transitory)
People or families can be poor because of some adversities like earthquakes, floods or
a serious illness. Sometimes, people can help themselves out of this situation quickly if
they are given a bit of assistance, as the cause of their situations was just one
unfortunate event.
d. Generational or Chronic Poverty
This is a more complicated type and we will see a detailed example here. This is when
poverty is handed over to individuals and families from generations before them. In this
type, there is usually no escape from it, as people are trapped in its causes and have no
access to tools that will help them get out of it.
Spatial distribution of poverty
At the time of the independence of Pakistan in 1947, Pakistan inherited the most
backward parts of South Asia with only one university, one Textile Mill and one Jute
Factory. The country has made tremendous progress and its per Capita GNP remains
the highest in South Asia. During the last decade poverty elimination programs helped
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many of the poor to participate and rise up. However the Global financial crisis and
other factors like the occupation of Afghanistan have impacted Pakistani growth.
Poverty in Pakistan has historically been higher in rural areas and lower in the cities.
Out of the total 40 million living below the poverty line, 30 million live in rural areas.
Poverty rose sharply in the rural areas in the 1990s and the gap in income between
urban and rural areas of the country became more significant. This trend has been
attributed to a disproportionate impact of economic events in the rural and urban areas.
Punjab also has significant gradients in poverty among the different regions of the
province.
The Khyber Pakhtunkhwa of Pakistan was one of the most backward regions of the
South Asia. Despite this, tremendous progress has been made in many areas. The
NWFP now boasts several universities including the Ghulam Ishaq Khan University of
Science and Technology. Peshawar a sleep cantonment during British towns is a
modern cosmopolitan city. Much more can be done to invest in the social and economic
structures. NWFP remains steeped in tribal culture, though the biggest Paha city is
Soviet invasion of neighboring Afghanistan is intact and according to Western reports
supported the Taliban regime. These and other activities have led to a breakdown of
law and order in many parts of the region.
Poverty and gender
The gender discriminatory practices in Pakistani society also shape the distribution of
poverty in the country. Traditional gender roles in Pakistan define the woman's place as
in the home and not in the workplace, and define the man as the breadwinner.
Consequently, the society invests far less in women than men. Women in Pakistan
suffer from poverty of opportunities throughout their lives. Female literacy in Pakistan is
43.6% compared to Male literacy at 68.2%, as of 2008. In legislative bodies, women
constituted less than 3% of the legislature elected on general seats before 2002. The
1973 Constitution allowed reserved seats for women in both houses of parliament for a
period of 20 years, thus ensuring that women would be represented in parliament
regardless of whether or not they are elected on general seats. This provision lapsed in
1993, so parliaments elected subsequently did not have reserved seats for women.
Reserved seats for women have been restored after the election of 2002. Female labor
rates in Pakistan are exceptionally low.
Environmental issues
Environmental problems in Pakistan, such as erosion, use of agro-chemicals,
deforestation etc. contributes to rising poverty in Pakistan. Increasing pollution
contributes to increasing risk of toxicity, and poor industrial standards in the country
contribute to rising pollution.
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Socio-Economic Status of Pakistanis, source [2]
Causes of Poverty
Pakistan is a poor country. Its economy is facing fluctuations now a day. At the time of
independence Pakistan has very low resources and capital, so the processes of
progress were very slow. Unfortunately the politicians of Pakistan were all not well
aware of modern global system and the progress processes and the needs of country.
Due to bad policies today Pakistan is facing a lot of problems. The continuous failure of
policies leads the people of country to miserable conditions. The major problem in the
country is poverty which is becoming the cause of crime and social disorder.
It is difficult to point out all causes of poverty in Pakistan but the major causes of are
given below:
Government Policies:
Government is not well aware of present conditions of country. The policies of government
abase on the suggestions of officials which do not have awareness about the problems of a
common man. After implementation 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.
Corruption:
Another cause of poverty is corruption. There are two types of corruption. There is not morality
and everyone is trying to earn more and more by using fair and unfair means. Officials waste
their time has low efficiency. Only one relationship that is exists in society is money. One has to
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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. Justice can be bought by money only. But
government is unable to control such type of things. In this whole scenario some corrupt people
has been occupying the resources and common man is living in miserable conditions.
Unemployment
Unemployment is the major cause of poverty. Unemployment means no source
of income and result is poverty. Rate of unemployment is 5.5 %, 16 % is
underemployed and 20 % is disguised unemployed in Pakistan.
Lack of Foreign Investment
Due to backwardness, political instabilities and improper availability of
infrastructure the attraction for foreign investment is not suitable. Foreign investment is
$ 1.8 billion in Pakistan. Lack of foreign investment means less employment
opportunities and poverty.
Low National Income
Poverty in Pakistan is also the result of low level of national income. Low level of
national income means low level of saving and low level of investment. All these factors
contribute toward poverty.
Use of Backward Technology
Techniques of productions used by developing countries are backward. Due to
out-dated methods of production, productivity level is low. Low level of productivity
means narrowness of market and reduction in exports and increase in imports.
Increase in Utility Charges
Utility charges like water, gas, electricity, telephone bills etc. are increasing day
by day in Pakistan. More utility charges lead to reduction in the saving of population and
its result is poverty.
Low per Capita Income
Per capita income of Pakistan is as low as $ 1095. Low per capita income means
low level of saving and low level of investment. Its result is poverty.
Backward Agricultural Sector
In agriculture sector people have adopted just subsistence farming styles. They
are not farming according to the commercial patterns. Sometimes due to natural
calamities and use of backward techniques of production, there is reduction in
production and it decreases the income of poor farmers.
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Absence of Credit Facilities
Poor population needs credit facilities to take an active part in economic activities
to remove poverty. But in Pakistan, availability of credit is not desirable. Poor people
have no access to credit it is only for rich landlords. Conditions for credit issuing are so
tights and credit is not given in time.
Improper Income Distribution
Imbalanced distribution of resources is an additional cause of poverty in
Pakistan. This situation leads to increase the gap between rich and poor. Due to
undesirable distribution of income and wealth, poor population is unable to take part in
economic activities to remove poverty.
Low level of Productivity
Due to use of backward technologies and inefficiencies of labor & entrepreneur
productivity level in Pakistan is very low as compare to developed countries. Value of
annual productivity of Pakistani labor is much lower than the labor of rich nations.
Low level of Saving
Low level of saving is mainly due to low income. It leads to less investment and
less return. Due to less return people remains poor forever. Domestic Savings are 9.9
% of GDP in Pakistan.
Inflation
High rate of inflation is an extra reason for poverty. Due to inflation much amount
of money is not enough to purchase much amount of goods and services. Inflation
decreases the savings and investments of poor people and they remain poor. Rate of
inflation is 13.3 %.
Imposition of Taxes
Government has to impose taxes to raise its revenue. Imposition of taxes
reduces the disposable income of people. Lack of disposable income means low
savings and low investment and poverty.
Non-Productive Expenditures
Government has to make a lot of unproductive expenditures on social heads and
to make strong defense. These high expenditures are also a reason of poverty.
Low Rate of Capital Formation
Rate of capital formation in Pakistan is very low. Low rate of capital formation
means low opportunities of employment, low level of productivity and deficit in balance
of payment that leads to poverty. Rate of capital formation is just 5 % and it should be
more than 20 %
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Measures to remove poverty
Different economists to remove the serious problem of poverty suggest following measures:
1- Poverty can be removed by broking the vicious circle of poverty.
2- Control on inflation is compulsory to eliminate the poverty.
3- Government should provide more facilities to investors to increase the investment to reduce the
unemployment.
4- Use of modern techniques of production and subsidies in utility charges is necessary.
5- Development of agriculture and industrial sector will reduce the poverty in Pakistan.
6- Government should make easy, more and in time availability of various types of credits.
7- We should save more to reduce the poverty.
8- Govt. should reduce the rate of tax and increase the rate of capital formation.
9- Govt. should allocate more funds for education to increase the literacy rate.
10- Proper maintenance of law and order in necessary to remove the poverty. [3]
Pakistan Economic survey 2013-2014
According to the World Bank’s Poverty Head Count Analysis 2014, if income per adult in
Pakistan is taken as $ 1.25 per day, then 21.04 percent of the population falls below
poverty line at 2008 population estimates. But if the poverty line is raised to $ 2 per day
in line with international standards for middle income countries, then 60.19 percent of
the population fall below poverty line. The position of poverty in Pakistan is better than
India and Bangladesh but Sri Lanka, China and Philippine’s are in a better position than
Pakistan. However, according to Pakistan Millennium Development Goals Report 2013,
the poverty head count has been worked out at 12.4 percent of population tentatively for
the year 2010-11.
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15.2 Poverty Head Count Ratio
Countries Percentage of
population Below
US $1.25 a day
Percentage of
population Below
US $2.00 a day
Pakistan(2008) 21.04 60.19
China(2008) 13.06 29.79
Bangladesh 43.25 76.54
India(2008) 32.68 68.72
Sri Lanka(2007) 7.04 29.13
Nepal (2010) 24.82 57.25
Philippines 18.42 41.53
Millennium Development Goals (MDGs)
Pakistan has adopted the Millennium Declaration in the year 2000, and is committed to
‘spare no effort to set free the most vulnerable segment of population from the abject
and dehumanizing conditions of extreme poverty’. Pakistan has adopted 16 targets and
41 indicators against which progress towards achieving the eight goals of the MDGs is
measured. The Government of Pakistan recognizes that eradication of poverty & hunger
to meet Goal-1 is a first step in promoting a just and progressive society.
According to Pakistan MDG’s Report 2013, high growth did not lead to even a moderate
decline in
Poverty in sixties, while in the seventies the incidence of consumption based poverty
decline in spite of low growth due to pro poor policies. In eighties and early 2000s
witnessed high growth leading to reduction in poverty, lending support to the poverty-
growth nexus.
Goal 1: Eradicate Extreme Poverty and Hunger
Under MDG-1, Pakistan aims to halve by 2015, the proportion of people living below the
national poverty line, achieve full and productive employment and decent work for all,
and halve the proportion of people who suffer from hunger. The targets to be achieved
by 2015 and achievements made up to 2010-11
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Benazir Income Support Program (BISP):
In the year 2007-08, due to sharp rise in oil prices and primary products in the
international as well as domestic market resulted in double digit inflation, which almost
halved the purchasing power of the people. Hence, there was an urgent need for direct
and speedy relief to the underprivileged sections of the society. Therefore, BISP is the
Government of Pakistan’s response to cushion the negative impact of slow economic
growth, the food crisis and inflation on the poor, particularly women, through the
provision of cash transfers of Rs. 1,000/month to eligible families. Its long term
objectives include meeting the targets set by Millennium Development Goals (MDGs) to
eradicate extreme and chronic poverty and empowerment of women. Present
Government has not only continued the Program but has also increased the cash grant
amount to Rs. 1200/ month. BISP was initiated in October 2008, with an initial allocation
of Rs. 34.0 billion (US $ 425 million approximately) for the financial year 2008-09. Since
its inception in July 2008 to June 2013, BISP has grown rapidly; it is now the largest
single poverty alleviation program in Pakistan. The number of beneficiaries (Fig-1) has
increased from 1.7 million families in 2008-9 to nearly 5.25 million in current year 2013-
14 and BISP annual disbursements (Fig-2) rose from Rs. 16.0 billion in 2008-9 to Rs.
48.18 billion in the first three quarters of 2013-14. This period of growth and
consolidation of beneficiary related data/information in BISP is characterized by two
major transitions. In initial phase of BISP from 2008-09 to 2010-11, the beneficiaries
were identified by parliamentarians while in 2010-11, a major transition occurred and
poor households have been identified through a Poverty Scorecard Survey based on
household demographics, assets, and other measurable characteristics that, in
principle, cannot be manipulated by beneficiaries and the survey firms. The Nationwide
Poverty Scorecard Survey, the first of its
kind in South Asia, enables BISP to identify eligible households through the application
of a Proxy Means Test (PMT) that determines welfare status of the household on a
scale between 0-100. The targeting mechanism, although not problem free, tries to
avoid the conceptual and empirical difficulties associated with measuring income. The
survey was started in October 2010 and has been completed across Pakistan except in
two FATA Agencies. The survey has the following features: 7.7 million families are
identifies living below cutoff score of 16.171. Creation of a large and reliable national
registry of the socio-economic status of almost 27 million households across Pakistan
GPS coordinates of all the household visited are available to map the data of the entire
country for informed decision making (for example, as a response to natural disasters
and other emergencies) The second major transition that took place was use of
innovation and technology in delivering payments to its beneficiary households. BISP in
its initial phase started delivering cash transfers using Pakistan post due to its outreach
across Pakistan. But later, in order to improve the efficiency and transparency of
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payments to its beneficiaries, BISP started using innovative payment mechanisms in the
form of Benazir Smart Card and Mobile Phone Banking on test basis in twelve districts
across the country. After testing the pilots, BISP has rolled out Benazir Debit Card
across Pakistan. Now, around 78 percent of its beneficiaries are receiving payments
through technology enabled innovative payment mechanisms. This massive flow of
funds using formal banking sector is contributing immensely towards growth of
branchless banking in Pakistan and is providing a link to formal banking sector to reach
to the untapped market segment through innovative and careful product design.(PDF
FILE)
Pakistan Poverty Alleviation Fund (PPAF)
Pakistan Poverty Alleviation Fund (PPAF) is established as an apex governmental Non
Profit Organization for community-driven development in the country. PPAF enjoys
facilitation and support from the government, The World Bank, International Fund for
Agricultural Development (IFAD), Development Bank of Germany (KFW) and corporate
donors. Outreach of PPAF now extends throughout Pakistan and its microcredit, water
and infrastructure, drought mitigation, education, health and emergency response
interventions have been widely recognized. Independent studies have demonstrated
positive outcomes and impact of PPAF interventions on the lives of benefiting
community’s relation to their economic output, household incomes, assets, agricultural
productivity skills and other quality of life indices. PPAF aims to be the leading catalyst
for improving the quality of life, broadening the range of opportunities and socio-
economic mainstreaming of the poor and disadvantaged, especially women. The core
operating units of the PPAF deliver a range of development interventions at the grass
root/community level through a network of 127 partner organizations across the county.
The sole objective of the PPAF is to improve the quality of life of poor and marginalized
people throughout the country. Its specific goals are:
a. To eradicate extreme poverty and hunger
b. To promote gender equality and empower women
c. To achieve universal primary education
d. To improve maternal health
e. To reduce child mortality
f. To establish and strengthen Community Organization (COs) and NGO’s for
achievement of objectives mentioned above.
Since its establishment in April 2000 to December, 2013, PPAF has disbursed an
amount of Rs. 138.4 billion to its 127 Partner Organizations in 121 districts of the
country. During the same period, 6.6 million individuals had availed the PPAF financing
with 58 percent of the loans going to women. Almost 29,000 water and infrastructure
projects had been initiated, 1,843 health and education facilities supported; 391,000
credit groups and 123,500 community organizations formed, 660,800 staff and
community members were trained, 203,300 individuals received skills/entrepreneurial
trainings, 53,000 assets were transferred to ultra poor and vulnerable households,
26,279 individuals including women and youth trained on enterprise development under
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Waseela-e-Haq National & Waseela-e-Haq Sindh program of BISP and facilitated in
establishing their successful ventures, and 19,000 persons with disabilities were
rehabilitated.
During the period July-December, 2013-14, Pakistan Poverty Alleviation Fund (PPAF)
has managed to disburse an amount of Rs. 8,418 million to its partner organizations
under PPAF core interventions administered through various operational units and
special initiatives as shown in Table 15.5. [4]
Unemployment in Pakistan
The foremost problem world is facing today is unemployment. The ratio of
unemployment is increasing rapidly due to lack of sources and when unemployment
takes place so many crimes are automatically created. Pakistan has plenty of problems
in these days and unemployment is one of those. Unemployment is causing numerous
problems for its people. Pakistan has countless natural resources but these resources
are being wasted since the independence of Pakistan in 1947. You may find many
graduated masters, IT experts, engineers and doctors wandering about for job
opportunities. The people of Pakistan are considered highly talented and hardworking in
the world and there is no value of talent in Pakistan; therefore, it is the reason many of
engineers, doctors, Scientists, technicians and accountants go to foreign countries to
earn their livelihood.
Table 15.5: Disbursement by Operating Units/Special Initiatives
Sr no components Amount (M)
1 . Waseela-e-Haq (BISP 298
2 Institutional Development/Social Mobilization 481
3 . Microfinance Portfolio Management (MPM) 5253
4 Livelihood, Employment and Enterprise Development
(LEED)
1603
5 Community Physical Infrastructure (CPI) 341
6 . Water, Energy and Climate Change (WECC) 130
7 Education, Health, and Nutrition (EHN) 312
TOTAL 8418
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The poverty rate is also on peak; therefore, uneducated and unskilled people can be
found easily in Pakistan. Labor class is also affected by the unemployment. Due to
unemployment the living standard of Pakistanis is going down with the passage of time.
People are deprived of their basic needs. People have become the patients of
depression and they have no idea how to deal depression during unemployment. There
are various institutions which calculate unemployment rate according to the census and
studies, which are being conducted in every quarter of the fiscal year in Pakistan. The
most reliable institution which is accountable for calculating the unemployment rate in
Pakistan is the Pakistan Bureau of Statistics. [5]
Unemployment Rate in Pakistan 2014-2015
Basically unemployment rate identifies the number of people in percentage which are
looking for any job or lively hood as compared to the entire labor force percentage in the
state. There are various institutions which calculate this rate according to the
consensus, which is being done in every quarter of the fiscal year in Pakistan. The most
reliable institution which is accountable for calculating the unemployment rate in
Pakistan is the Pakistan Bureau of Statistics. The unemployment rate in Pakistan for the
year 2014-2015 is 6 percent. It was 6.30 percent at the start of the second quarter of the
fiscal year but at the latter half of the second quarter it declined by 0.30 percent and
currently the unemployment rate in Pakistan as per the report of the Pakistan Bureau of
Statistics is 6.0 percent.
There is a continuous variation in the unemployment rate in Pakistan, and unfortunately
Pakistan is still considered to be one of those countries which have the highest rate of
unemployment including both males and females. There are various tenures in which
the unemployment rate is increased abnormally due to any internal or external factor, as
in the year 2002 the unemployment rate in Pakistan was raised to an all time high
percentage which was 7.8 percent while on the hand in the year 1987 in the month of
December the unemployment rate of Pakistan was being recorded as the all time lowest
which was just 3.1 percent. For the tenure starting from the year 1985 till the year 2014-
15 the average unemployment rate in Pakistan is being recorded as 5.4 percent.
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Causes of Unemployment in Pakistan
There are many reasons or causes of unemployment in Pakistan but most important causes of
unemployment are discussed below in detail.
Growth of Population:
One of the major problems regarding unemployment in Pakistan is uncontrolled growth
of population. The population of Pakistan is increasing at very high rate this time.
According to the statistical the population of Pakistan is increasing at the rate of 2.2%.
There are plenty of factors responsible for overpopulation such as early marriages,
illiteracy, desires for sons, lack of awareness etc. As we all know that the education
system of Pakistan is not up to the mark therefore increasing in population means bring
more uneducated person into the field of labor. Government or any other company
cannot provide jobs or work places to this huge amount of uneducated people at time.
Poor Education System:
The education system in Pakistan has been really poor since the creation of Pakistan.
Unfortunately any government since independence didn’t take especial steps to make
the education system good. Education system in Pakistan is unbalanced. It has been
seen even talented students left study due to injustice of system. You will see many
technical educational colleges and private technical institutions are being found which
are only selling degrees because technical education which is being given in these
institutions has no value, therefore people are wondering about for jobs due to lack of
experience and skills.
Violence and Terror Activities:
As we all know very well that the Karachi is hub of trade and business in Pakistan but
there are no rules and regulations in Karachi as everyone is violating law in the biggest
city of Pakistan. Another cause of unemployment is terrorism. Terrorist activities in
Pakistan are on peak at this time especially in Karachi, therefore situation in Karachi is
really threatening and alarming and due to this the nationals and as well as foreigners
are frightened to invest in Pakistan. So when investors will not invest so how can job or
earning opportunities are being created?
Energy Crisis:
Could you believe country with plenty of natural resources and atomic power is lacking
of energy crisis? There are many sources of producing of energy in Pakistan but due to
lack of proper planning and efforts Pakistan is having problem of energy crisis. The
government of Pakistan is unable to provide electricity to residential areas in Pakistan
16. pg. 16
than how cans energy or electricity can be provided to factories and industries.
Therefore factories and industries that are required energy are transferring their
business in other Asian countries like Bangladesh, India and as well as Sri Lanka. As of
this result a huge number of labors are becoming the victims of unemployment.
High Age of Retirement:
The age of retirement in Pakistan is 60 years and it is really high age of retirement and
the government of Pakistan is directly responsible for this factor. There are various
educated people are in wait of jobs but high age of retirement is making young ones
frustrated.
Solution of Unemployment in Pakistan:
It will be tough ask for government to solve one of the major problems of Pakistan
“Unemployment” due to huge population but still we have given some solutions to
reduce the unemployment in Pakistan and we are hopeful by following these solutions
the ratio of unemployment in Pakistan can be reduced or decreased.
The first thing to do to reduce unemployment in Pakistan is the proper planning
by the government of Pakistan.
The education system of Pakistan should be equal and well managed.
Well recognized training and technical institutions are need to be established
where skills programs are offered.
The age of retirement should be at least 55 years.
Remove energy crisis so that investor comes to Pakistan thus job placement will
automatically be created.
There should be peace across the country so foreigners will not hesitate to invest
in Pakistan.
The agriculture sector should be developed.
Jobs should be given purely on merits.
Encourage multinational companies to business in Pakistan.
Family planning centers should be opened to control the flow of over population.
[6]
Overpopulation in Pakistan
Pakistan is the sixth most populous country in the world. In 1960 its population was 45.9 million
while in 2014 it is 188.8 million. Currently the growth rate of Pakistan is 2.2 percent while the
world population is 7 billion but if the same growth rate persists, estimates are that it would
reach 14 billion in the next century.
Pakistan had 2.6 percent growth rate in the 1990s and it was the highest among the world. Now it
is 2.2 percent and still it is one of the most densely populated countries in the world. That is an
17. pg. 17
ardent reason why we have failed to achieve the millennium development goals. Over population
leads to an increasing rate of poverty and hunger. Earth resources are getting limited day by day.
Overpopulation poses a great risk. So far this grave issue has been neglected by many
conventional political parties. It is a great challenge and sooner we realize the importance of
tackling with this issue, the better it would be in Pakistan’s interest.
When the sources of country run short of meeting the needs of the people, the result is
overpopulation. Among the reasons responsible for overpopulation include, low per
capita income, food shortage, unemployment. Cultural and religious resistance to check
the child birth is also potent factors in causing overpopulation in Pakistan. Early
marriages, low gab in between the kids, avoidance of birth control methods, lower
house hold saving rates, poor economic growth and increasing number of unemployed
youth are also some of the factors responsible for this state of affairs.
Housing is another big concern. The people are forced to live in the crowded houses.
Sanitation problem results because houses are being built at a faster pace. Sewer
system problems arise due to this bad sanitation in the newly built houses. The ultimate
result causes diseases like heart problems and cancer etc. The dearth of housing is
forcing the people to cut down trees. Thus the problem of pollution gets more severe
owing to rapid deforestation. This leads to dislocation of wildlife.
Although Pakistan is an agricultural land yet the 25 percent land of Pakistan is
uncultivable. Huge population is consuming the sources and the future is becoming
more alarming. If the same rate of population continues the government’s efforts would
also be unable to yield results and it would not be able to give everybody a decent life. It
cannot go for generating more resources and improving infrastructure. There is a lack of
planning. Due to the immense population the NGOs are also unable to work. The output
is possible if the civil society works in collaboration with political parties and the local
government. The overall low rate of education hinders in bringing any positive feed
backs.
There is a point raised by some people that if over population is a problem for Pakistan
then it should be same in India and Bangladesh. But they are devising modalities to
combat this problem. A case study of a lady health worker in Bangladesh, Tasleema
revealed that she went door to door and offered advice, moral support and a range of
contraceptives and thus contributed for generating awareness among the rural women
to limit the number of kids for their better upbringing. This small step and many of its
kind eventually have played an effective role in improving life in Bangladesh and the
growth rate lowered to a considerable extent.
A study implies that “According to statics, Pakistan has one of the most interesting
demographics. It has one of the world’s largest youth with 48 per cent of population
aged between 15 and 49 while 56 per cent population is aged between 15 and 64.”
Effective policies can convert large population into a large economy and a good
opportunity and make Pakistan an economic power house of the region. What is
needed is better and appropriate management of human resources. However if we are
18. pg. 18
not able to pay proper attention to this great resource then it may become a burden on
the economy of the country. [7]
10 Worst Natural Disasters in History of Pakistan
U.N. Secretary-General Ban Ki-moon on his visit during Pakistan Flooding said that he
has never seen anything like the flood disaster in Pakistan. According to the National
Disaster Management Authority, the current floods in Pakistan constitute the worst
natural disaster in the country’s history. Back in 2005 Northern areas of Pakistan were
struck with a powerful earthquake which lead thousands dead and millions homeless.
Here I have compiled a list of some of the worst natural disasters in history of Pakistan.
I request International community to assist and offer support to Pakistani Government in
this humanitarian crisis.
1. Pakistan Floods 2010
So far 2000 people have died in recent floods in Pakistan and over 20 million affected.
Pakistan has sought international help to cope with the catastrophe. Despite mass
evacuations, there are fears the death toll will rise as flooding reaches the southern
province of Sindh and the risk of water-borne disease outbreaks increases in many
areas.[Picture courtesy Boston]
2. 2010 Hunza Lake Disaster
A landslide in January 2010 in Atta bad village in north of the country killed 20 people
which led to around 40 houses sliding into the Hunza River. Debris from the landslide
caused the river to dam, leading to the formation of a large lake which threatened to
flood downstream areas. Some 20,000 were forced to leave their homes by June.
19. pg. 19
3. 2007 Cyclone Yemyin
At least 730 people died as a result of flash floods triggered by Cyclone Yemyin, which
struck coastal areas in early July 2007. Some 350,000 people were displaced, 1.5
million affected and more than two million livestock perished.
4. 2005 Kashmir Quake
A 7.6-Richter scale quake struck the Kashmir region on the India-Pakistan border and
parts of northwestern Pakistan on 8 October 2005. According to official figures, at least
73,000 people were killed and more than 3.3 million made homeless. Work even
continues today to rebuild damaged infrastructure.
5. 2000 Drought
At least 1.2 million people in Baluchistan were affected by drought, and over 100 died,
mostly because of dehydration, according to the government. Millions of animals
perished. The drought lasted over 10 months.
6. 1974 Hunza Earthquake
A 6.2 Richter scale quake hit Kohistan and surrounding areas including parts of
Swat, Hunza and Kashmir in northern Pakistan in 1974. About 5,300 people were
killed, 17,000 injured and 97,000 affected. Landslides and rock falls contributed
to the damage.
7. 1970 East Pakistan Cyclone
The Bola tropical cyclone struck the territory in 1970 was the deadliest tropical cyclone
ever recorded and is rated as one of the worst natural disasters in modern times. Up to
500,000 lost their lives, primarily as a result of the storm surge that flooded much of the
low-lying islands of the Ganges Delta.
8. 1950 Floods
Monsoon rain in 1950 killed an estimated 2,900 people across the country. Punjab
Province, including the city of Lahore, was among the worst hit when the River Ravi
20. pg. 20
flooded. Over 100,000 homes were destroyed, leaving around 900,000 people
homeless.
9. 1945 Baluchistan Earthquake
A 7.8 Richter scale earthquake hit southwestern Baluchistan on 28 November 1945.
The epicenter was 98km southwest of the town of Pasni. Apart from massive damage to
property, the quake led to a 40-foot tsunami causing the deaths of over 4,000 people.
10.1935 Quetta Earthquake
A 7.7 Richter scale earthquake virtually leveled the city of Quetta in the province of
Baluchistan. About 60,000 people were killed in one of the deadliest earthquakes to hit
South Asia. The epicenter was about 153km from Quetta. [8]
21. pg. 21
GLOBAL EXPERIENCE
It has now become abundantly clear that accelerated growth per-se is
necessary but not suffi ci ent condi ti on for bri ngi ng about sustai nable
poverty reduction. There are other complementary factors which have to accompany
higher growth. The most important of these is investment inhuman development
– education, training, literacy, health, drinking water, nutrition, population planning.
Countries which have neglected human development may achieve some spurt in
growth and poverty reduction for a short period of time but these gains will not last long.
Growth together with investment in human development offers a much better
chance for alleviating poverty. But even then, some segments of population living in
remote, i solated areas and margi nali zed lands or li vi ng wi thout any
tangible assets other than their labor may require targeted interventions by the
government to create opportunities for them to earn livelihood. It has also become
apparent that in every country there would be highly vulnerable groups
who would need soci al protecti on and soci al safety n e t s . T h u s i f
a c o u n t r y i s a b l e t o p u t t o g e t h e r t h e s e f o u r f a c t o r s
– Accelerated growth, investment in human development, targeted poverty
interventions and social protection – the probability of achieving reduction in the
incidence of poverty becomes quite high
COMPARISONS
Poverty Status 2001 and 2004-05: Survey Evidence
Table 1 gi ves a comparati ve snapshot of poverty status duri ng 2001
and 2005. The latest estimate of inflation ─ adjusted poverty line is Rs.878.64 per
adult equivalent per month ─ up from Rs.723.40 i n 2001. Headcount rati o,
i .e., percentage of populati on li vi ng below the poverty line has fallen
from 34.46 percent in 2001 to 23.9 percent in 2004-05, a decline of 10.6
percentage points. In absolute numbers the count of poor persons has fallen
from 49.23million in 2001 to 36.45 million in 2004-05. The percentage of
population living below the poverty line in rural areas has declined from
39.26 percent to 28.10 percent while those inurbane areas, has declined
from 22.69 percent 14.9 percent. In other words’, rural poverty has declined
by 11.16 percentage points and urban poverty is reduced by 7.79 percentage
points. The other two i ndi cators, poverty gap and severi ty of poverty
are aggregate measures of ‘spread’ of the poor below the poverty line,
i.e., they aggregate the distance (proximity or remoteness) of all poor individuals
from the poverty line. A lower value indicates that most of the poor are bunched
around the poverty line. In line with the improvement in headcount, both the
poverty gap and severity of poverty has also declined substantially in the
country. These findings are consistent with the developments on economic scene that
have taken place si nce 2000- 01. A strong growth i n economy, ri se i n
per capi ta i ncome, a large i nflow of remi ttances and massi ve
22. pg. 22
spendi ng on poverty-related and soci al sector programs were expected
to reduce poverty in Pakistan.
Table 1: Poverty Indicators 2001and 2004-05.
The estimation of poverty line enables the policy makers to further identify
and group the population into various ‘poverty bands’ such as extremely poor,
vulnerable and non-poor excitable 2 presents a comparati ve profi le of 2001
and 2004-05 for the si x groups. Whi le the percentage of population
classified as ‘extremely poor’ remain almost identical in the two periods, the
proportion of ultra poor and poor have declined appreciably. At the higher
end, the percentage of quasi non-poor and non-poor in the economy increased notably.
Table 2: Comparative Poverty Profile 2001and 2004-05Percentage of Population
Detailed analysis of the consumption patterns of the population grouped by quintiles
provides strong evi dence i n support of the observed reducti on i n
poverty levels between 2001 and 2004-05. Table 3 compares mean and
median of real monthly consumption expenditure per a d ul t e q ui va l e nt o f
t he 2 p e r i o d s . O ve r a l l , t he g r o w t h i n r e a l m e a n e xp e nd i t ur e o f
t he population from Rs.1004 to Rs.1171 is 16.6 percent. The growth in real
mean expenditure of top 20% percent populati on at 22 percent i s
nearly 2½ ti mes that of the bottom 20%. The closeness of mean and
median values across the bottom 0% of the population indicates that
consumption expenditures are bell-shaped normally distributed around the
mean and median o f e a c h q u i n t i l e s . O n l y t h e t o p 2 0 % o f t h e
p o p u l a t i o n e x h i b i t g r e a t e r s c e n e s i n consumption behavior as mean
and median consumption expenditures are different.
23. pg. 23
Table 3: Consumption Expenditure between PIHS 2000-01 and PSLM 2004-05 at the
Prices of 2001. [9]
CONCLUSION
Poverty has been widely recognized a matter of deprivation in multiple dimensions.
The non-income indicators and multidimensionality of poverty have got much attention
With the advancement of knowledge. More specifically, the operational ingredients of
Poverty is now considered in terms of deprivations of food, shelter, education, health or
other basic needs. This research Endeavour goes beyond the monetary phenomena
and Emphasized the importance of provision of several services to eradicate poverty. In
the Empirical examination, poverty has been visualized in a wider angle by highlighting
the Groups of population having higher share in the overall incidence of poverty in
Pakistan. The study analyzed the issue of deprivation across provinces as well as
administrative Divisions (including both regions rural and urban) of Pakistan keeping the
newly proposed method of identification of poor in the multidimensional perspective. An
estimation of Incidence, depth & severity of multidimensional poverty has been made
across the time and space by employing the advanced and enlarged form of FGT
measures (adjusted Headcount ratio, adjusted poverty gap ratio and adjusted squared
poverty ratio). On an overall basis, incidence of multidimensional poverty was estimated
at 43.34 Percent in 1998-99. With minor fluctuation, the value for 2007-08 was 38.31
percent. The regional situation exposes that the poverty index was higher in the rural
area, but it was interesting to note that the percentage decrease was substantial in rural
areas as compared to the urban areas. This indicates that growth has been effectively
translated to the rural poor during that specific decade. Sindh urban was the only region
where incidence of Multidimensional poverty increased overtime. The declining trend in
Punjab province was 333 higher than that of Sindh. Baluchistan remained the worst of
all in terms of reduction in Multidimensional poverty. In 2007-08, the proportional
contribution of Baluchistan in the Overall multidimensional poverty was the highest both
in rural and urban areas. Similarly in each province there has been made further
estimations at divisional level and thus identified the percentage contribution of each
division to the overall poverty statistics in the respective provinces. For all the five years,
separate multilogistic analysis indicate that probability of occurrence of poverty in a
specific area was attributed to household size, household head age, education, child
24. pg. 24
index, unemployment, dependency ratio, rural urban and provincial dummies. The
empirical research also compared the results of unit-dimensional and multidimensional
coefficients of poverty in addition to percentage contribution of each region to overall
statistics over the time in Pakistan. The study also statistically analyzed the consistency
of the determinants of poverty from 1998 to 2008. The pathway from mere unit-
dimensional estimation to multidimensional diagnostics would be helpful for drawing
workable policy inputs. This research is the first attempt to mapping and measuring the
extent of multidimensional poverty in Pakistan through the well known FGT measures
(headcount ratio, poverty gap and severity of poverty). The choice of indicators
describing deprivation status is according to the available data. The income and non-
income indicators are developed using household income and expenditure surveys for
the year 2001-02 to 2007-08. It would be a pioneering effort in Pakistan offering
government some policy lessons for constructing a comprehensive Poverty Reduction
Strategy Papers (PRSPs) while meeting World Bank standards. [10]
