Poverty in Pakistan

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Submitted to:Sir ShahidHameedSubmitted By:Sadia Ali (0911244)ShafiaWasim (0911246)BBA 5-D| DEVELOPMENT ECONOMICS

Executive Summary2
Measurement of Poverty5
Determinants of poverty9
Regional characteristics:9
Community Characteristics:10
Household and Individual characteristics:10
Demographic characteristics:10
Economic characteristics:10
Social characteristics:10
Economic Characteristics of Poverty Group11
Rural Poverty:11
Women and Poverty:11
Ethnic Minorities, Indigenous Population, and Poverty12
Global Trends of Poverty – From Year 2005 to Year 201013
Effects of Poverty on Economy17
Economic characteristics of Pakistani poverty groups18
Rural Poverty:18
Women and Poverty:19
Ethnic Minorities, Indigenous Population, and Poverty:19
Levels/trends of poverty in Pakistan-measuring absolute poverty20
Reasons for Poverty in Pakistan22
Effects of Poverty in Pakistan25
Measures taken26
Measures that must be taken27


First and foremost, we would like to thank Almighty Allah, who blessed us with courage, determination and strength to complete this report.

We would also like to thank our course instructor Sir Shahid Hameed for providing us with explanations and guidance to prepare this report. He gave us an opportunity to develop a plan for this project by applying the concepts of development economics explained by him in the class. He made us learn how to work in a team to achieve a common objective as working with two different people with different views and ideas is not an easy job.

We would like to thank Sir Shahid Hameed for helping us understand how to apply the concepts of this subject practically by making this project.

Executive Summary

The report is all about one of the issues that hinder a countries economic development that is poverty. Poverty is a state of deprivation of the necessities of life necessary for living. The report mainly talks about the determinants of poverty that can be on regional, community level, individual and household basis (economic, social and demographic characteristics). Moreover, it highlights the different categories of poverty mainly three which are Absolute poverty, Relative poverty and working poverty. Various measures of poverty are described mainly three which are measuring Absolute poverty, relative poverty and poverty traps. These are mainly measured on income basis by drawing a national and global poverty line. Furthermore, various indexes can be used to measure absolute poverty which includes headcount index, poverty gap index, squared poverty gap index, sen index and human poverty index. The report further explains the various facts about world poverty trends which specify that 1.4 billion people in developing countries live on $1.25 a day or less, rural areas account for three out of every four people living on less than $1.25 a day and 22,000 children die each day due to conditions of poverty.The economic characteristics of poverty are further explained which includes poverty on the basis of rural areas, gender (women mainly), ethnic minorities and indigenous population. Poverty can have adverse effects on the economy the major one being the falling standard of living of the poor, all sorts of economic problems, health problems, education deprivation and many more. Furthermore, the incidence of poverty in Pakistan is discussed through a case study where we discussed the various characteristics of poverty groups in Pakistan based on ethnicity of minorities and indigenous population, gender and rural-urban levels of poverty. Trends of poverty are further discussed showing overall increases in poverty in Pakistan. Moreover, the causes of poverty in Pakistan are discussed which consists of Government policies,...
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