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 semi-industrialized, 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 fast-growing 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.

Year Gross Domestic Product US Dollar ExchangeInflation Index(2000=100)

Per Capita Income(as % of USA)

1960

20,058 4.76 Pakistani Rupees 3.37

1965

31,740 4.76 Pakistani Rupees 3.40

1970

51,355 4.76 Pakistani Rupees 3.26

1975

131,330 9.91 Pakistani Rupees 2.36

1978

283,460 9.97 Pakistani Rupees 21 2.83

1985

569,114 16.28 Pakistani Rupees 30 2.07

1990

1,029,093 21.41 Pakistani Rupees 41 1.92

1995

2,268,461 30.62 Pakistani Rupees 68 2.16

2000

3,826,111 51.64 Pakistani Rupees 100 1.54

2005

6,581,103 59.86 Pakistani Rupees 126 1.71

2014

100.55 Pakistani Rupees195

POVERTY IN PAKISTANPoverty 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 country’s 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.

SDPI’s 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. Punjab’s 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. Pakistan’s increase in poverty is due to manifold reasons. Pakistan’s 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 government’s 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! Pakistani’s 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 Pakistan’s 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.

SDPI’s 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 PoliciesGovernment 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. OverpopulationPakistan 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. UnemploymentPakistan 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 ImportThe 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 OrderThere 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, it’s 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. pakistani community.net

www.currentaffairspk.com

www.wekipedia.com