POVERTY IN PAKISTAN

Poverty in Pakistan is a growing concern. Although the middle-class has grown in Pakistan to 35 million, more than one-third of the population is classified poor as of October 2010. As of 2010, about 40% of the total population lives below the poverty line (World Bank). Which is the highest figure in the history of Pakistan.  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.

CAUSES OF POVERTY

1. POOR PERFORMANCE OF AGRICULTURE   SECTOR

2. UNFAIR DISTRIBUTION OF RESOURCES

3. RAPIDLY INCREASING POPULATION.

4. INFLATION.

5. INDUSTRIAL BACKWARDNESS.

6. LOW LEVEL OF EDUCATION.

7. POOR GOVERNANCE

1. POOR PERFORMANANCE OF AGRICULTURE SECOTR

                                                                            

Data from the agriculture census of Pakistan, conducted in 2010, shows that cultivated land in unequally distributed in Pakistan. Poor farmers have no availability of adequate and cheap fertilizers, pesticides, quality seeds, water, latest technology and consultancy services. They have no capital to improve their lands, that’s why their income level is low and poverty especially prevails in the rural areas.

2. UNFAIR DISTRIBUTION OF RESOURCES

The second reason for poverty is the unfair distribution of income among people. The poor are becoming poorer and the rich becoming richer. In Ayub’s era there were 22 families, who had control of the majority of the national income. In the present, the situation is the same with a slight difference. Such unequal distribution of income is creating restlessness among the less income class. They have less money to fulfill their basic needs like food, health, education and housing etc, that’s why the poverty level is growing day by day. In fact, the non-adoption of Islamic economic system and the capitalistic system are responsible for such an unfair division of wealth.

3. RAPIDLY INCREASING POPULATION.

The third reason for poverty is the rapidly growing population of the country. According to the latest figure the population of the Pakistan Is 180 million. Population-wise Pakistan is the 6th largest country in the world and its population growth rate is 1.9%, which is the highest in the region. Pakistan’s GDP growth rate is less than 3%. So, there is a shortage of goods and services like food, clothing, housing facilities, education and health etc all these things are inadequate to meet the necessities of a growing population. One earning hand has to feed a large number of family members. Due to the high level of demand and less production, there is general poverty.

4. INFLATION.

The fourth reason for poverty is inflation, which is a king of regressive tax on the fixed income class. Due to inflation, the salaried and fixed income group is more affected than the business class. The employees’ salaries are not increased by the government in proportion to inflation, but their expenditures are increasing, day-by-day, due to dearness. Less income and the low level of saving are responsible for poverty. Increase in the prices of oil at the international level is also enhancing poverty.

5. INDUSTRIAL BACKWARDNESS.

Fifthly, our industrial sector is very backward the share of this sector in national income is less than 20%, which is very low as compared to the developed economies. Due to industrial backwardness, our exports are less, rather we have to import electrical and industrial items at high rates. A huge portion of foreign exchange reserves in consumed for industrial imports. The low level of living and poverty is related to the backwardness of this sector directly of indirectly.

6. LOW LEVEL OF EDUCATION.

The sixth reason for poverty is the low level of education and the defective education system. In Pakistan, the literacy rate is only 56%, which is very low in the world. Due to the few technical, engineering and research institutions, the productivity of labor is very low and our human resources are outdated, both qualitatively and quantitatively. Women are not given the chance to participate in national, economic, social and educational activities. Due to the scarce access to education, the majority of people have a low level of income, directly of indirectly, resulting in poverty.

7. POOR GOVERNANCE

Seventhly, poor governance is responsible for creating poverty. Good governance is an essential and important pre-condition for growth and development. But in Pakistan, such a scenario is different. People have less access to justice and national decision-making. There is corruption, political instability, a disturbed law and order situation, red tapism, terrorism, bomb blasts and delay in the system etc.