Q-36=What do you understand by Poverty. What strategy government adopted to eliminate poverty in Pakistan?
POVERTY IN PAKISTANPoverty means that people with a certain income may not be in a position to fulfill their basic needs of life, which include food, clothing, shelter, education and transport. In Pakistan poverty rate is 24 % and is continuously increasing. There are many reasons for the increase of poverty rate in Pakistan. The population is increasing at a very fast rate whereas resources of country are not sufficient enough to fulfill the needs of the people. Government is neglecting their social welfare programs. Since it is not providing state education and health facilities. Expenditure of the people on this account is increasing day-by-day making poor people poorer. Due to increase in population and lack of industrialization and other development activities, unemployment is increasing which is causing poverty. Administrative machinery is very weak to control general prices.
MEASUREMENT OF POVERTY IN PAKISTANThe Household Integrated Economic Survey is designed to monitor poverty status of population by collecting information on consumption expenditure at household level.14706 families represent sample size, it consist of 5808 and 8898 families respectively in urban and rural areas.The Survey was started in July 2004 and completed in June 2005. Information of consumption / expenditure of 196 items including 89 food items were collected from each household. Consumption items include food items, frequently used, non-food expenses (household laundry, cleaning, personal care product, utilities, fuel, energy and transportation), other non-food expenses such as clothing, footwear, education, health and house rents. The poverty line is based on 2350 calories per adult per day.
The latest poverty line is Rs.878.64 per person per month. Head count ratio that is percentage of poverty line of population living below poverty line is 23.9. The percentage of population living below poverty line in rural areas has declined from 39.26% to 28.10 percent while those in urban areas has declined from 22.69 to 14.9 percent.
GENERAL CAUSES OF POVERTY IN PAKISTAN
1 Increase in population
2 Increase in prices of general commodities
3 Social welfare programs are neglected
4 Lack of employment opportunities
5 Uneven distribution of national wealth
6 Poor law and order situation
MEASURES TO REDUCE POVERTY
1 Utility Stores Corporation
2 Food stamps scheme
3 Zakat distribution system
4 Integrated public works program
5 Micro Finance bank
In order to reduce poverty from Pakistan, government is adopting several measures. Utility Stores Corporation is providing daily use items at subsidized rate. Its stores have been set up in different cities of the country. Government is also distributing cash money through zakat and Ushr mechanism. Under Integrated Public Works Program construction work of roads, canals, bridges and reclamation of land has already started which provides job opportunities. Price Control system has been strengthened and the government officials carry out frequent checking and inspection so that prices of essential goods may not increase. Measures to reduce poverty have been given as under: -
Pakistan’s poverty reduction strategy has yielded handsome result in the shape of reduction in poverty.Although poverty has decreased, but the fact is that 23.9 percent of Pakistan's population still lives below the poverty line. The reduction in poverty is a major challenge for the government.A clear lesson from the past is that sustained growth on a consistent basis is needed to reduce poverty. Macro economic stability is a prerequisite for sustained economic growth that brings poverty reduction and rising living standards that Pakistanis want to see. But macroeconomic stability is not sufficient. Rather it is the foundation on which to build a thriving economy. Successfully targeted social programs, fair and broad based fiscal regimes, labor markets that promote job creation and high qua lity education opportunities are also key to poverty reduction.
POVERTY IN PAKISTANPoverty means that people with a certain income may not be in a position to fulfill their basic needs of life, which include food, clothing, shelter, education and transport. In Pakistan poverty rate is 24 % and is continuously increasing. There are many reasons for the increase of poverty rate in Pakistan. The population is increasing at a very fast rate whereas resources of country are not sufficient enough to fulfill the needs of the people. Government is neglecting their social welfare programs. Since it is not providing state education and health facilities. Expenditure of the people on this account is increasing day-by-day making poor people poorer. Due to increase in population and lack of industrialization and other development activities, unemployment is increasing which is causing poverty. Administrative machinery is very weak to control general prices.
MEASUREMENT OF POVERTY IN PAKISTANThe Household Integrated Economic Survey is designed to monitor poverty status of population by collecting information on consumption expenditure at household level.14706 families represent sample size, it consist of 5808 and 8898 families respectively in urban and rural areas.The Survey was started in July 2004 and completed in June 2005. Information of consumption / expenditure of 196 items including 89 food items were collected from each household. Consumption items include food items, frequently used, non-food expenses (household laundry, cleaning, personal care product, utilities, fuel, energy and transportation), other non-food expenses such as clothing, footwear, education, health and house rents. The poverty line is based on 2350 calories per adult per day.
The latest poverty line is Rs.878.64 per person per month. Head count ratio that is percentage of poverty line of population living below poverty line is 23.9. The percentage of population living below poverty line in rural areas has declined from 39.26% to 28.10 percent while those in urban areas has declined from 22.69 to 14.9 percent.
GENERAL CAUSES OF POVERTY IN PAKISTAN
1 Increase in population
2 Increase in prices of general commodities
3 Social welfare programs are neglected
4 Lack of employment opportunities
5 Uneven distribution of national wealth
6 Poor law and order situation
MEASURES TO REDUCE POVERTY
1 Utility Stores Corporation
2 Food stamps scheme
3 Zakat distribution system
4 Integrated public works program
5 Micro Finance bank
In order to reduce poverty from Pakistan, government is adopting several measures. Utility Stores Corporation is providing daily use items at subsidized rate. Its stores have been set up in different cities of the country. Government is also distributing cash money through zakat and Ushr mechanism. Under Integrated Public Works Program construction work of roads, canals, bridges and reclamation of land has already started which provides job opportunities. Price Control system has been strengthened and the government officials carry out frequent checking and inspection so that prices of essential goods may not increase. Measures to reduce poverty have been given as under: -
Pakistan’s poverty reduction strategy has yielded handsome result in the shape of reduction in poverty.Although poverty has decreased, but the fact is that 23.9 percent of Pakistan's population still lives below the poverty line. The reduction in poverty is a major challenge for the government.A clear lesson from the past is that sustained growth on a consistent basis is needed to reduce poverty. Macro economic stability is a prerequisite for sustained economic growth that brings poverty reduction and rising living standards that Pakistanis want to see. But macroeconomic stability is not sufficient. Rather it is the foundation on which to build a thriving economy. Successfully targeted social programs, fair and broad based fiscal regimes, labor markets that promote job creation and high qua lity education opportunities are also key to poverty reduction.