Poverty and Inequality in Pakistan: Trends, Causes, and Policy Implications

Abstract

Poverty and inequality are still a major threat to Pakistan contributing to lack of social cohesion, economic growth, and human development. Even though economic growth has occurred in some periods, a significant percentage of the population still lives below the poverty line and income, wealth, education, and health outcomes inequality are some of the factors that have led to inequality. This paper explores the trend and cause of poverty and inequality in Pakistan in the last twenty years, the structural, institutional and socio-economic factors that contribute to deprivation. The research relies on secondary data, such as national survey data, World Bank data, and government publications to identify the key determinants of poverty and inequality, such as inadequate access to good education, unemployment, unbalanced distribution of population and resources, and socio-cultural barriers. The research also assesses the current policy interventions and recommends policies on inclusive development, social security and equitable distribution of resources. Results highlight the importance of combined policy interventions to deal with structural inequalities, improve human assets, and facilitate equal access to economic opportunities to the reduction of poverty and curtail inequalities in Pakistan.