Definition Of Poverty In Pakistan

Introduction :

Poverty in Pakistan is really big issue. Large number of population is affected by it in Pakistan. Poverty is caused maybe by Inflation, unemployment, recession, Gov. Expenditures, corruption and by other variables. It is calculated by taking the poverty threshold from each country. Poverty is not a new phenomenon in Pakistan as every third Pakistani is caught in the ‘poor’ bracket,

Objectives:

Our objective is to make you understand what is poverty and what does it do to economy. To show you the statistics of poverty. The causes of poverty. And what are the measures to be taken to eradicate the poverty from an economy.

Poverty In Pakistan

Definition:

A state or condition in which a person or community lacks the financial

Absolute poverty means about the same everywhere, and can be eradicated as demonstrated by some countries. Relative Poverty:

Relative poverty occurs when people do not enjoy a certain minimum level of living standards as determined by a government (and enjoyed by the bulk of the population) that vary from country to country, sometimes within the same country. Relative poverty occurs everywhere, is said to be increasing, and may never be eradicated.

Poverty Line :

An international monetary threshold under which an individual is considered to be living in poverty. It is calculated by taking the poverty threshold from each country - given the value of the goods needed to sustain one adult - and converting it to dollars. The international poverty line was originally set to roughly $1 a day. When purchasing power parity and all goods consumed are considered in the calculation of the line, it allows organizations to determine which populations are considered to be in absolute poverty.

Causes of Poverty:

 Decline in overall national growth

 Political instability

 Natural disasters



Hence, it decreases purchasing power of people earning low earnings/Wages/Salaries.

Unemployment: International Labor Organization defines, poverty occurs when people are without jobs and they have actively sought work. Unemployment rate in 2009 was 7.40 which is doubled in 2010, the current rate is 15.20%.

When people are unemployed they consume the resources but are unable to contribute in overall economy, which results in poverty.

Effects of Poverty:

• Without the security of formal jobs, each day the poor work from dawn to dusk.

• All or most of the money earned go to basic survival. There is little or no money left to improve quality of life.

• Living in poverty almost always means that the harsh reality of today will repeat itself tomorrow.

• Poverty breeds poverty .If one cannot afford proper nutrition or health care for one’s family, children grow up at greater risk of acquiring a life threatening or disabling disease.

• If one cannot afford to educate one’s children, it will be a repeat of their parents’ life.

• If one cannot afford to buy one’s own land or home or livestock, there are few opportunities to build assets that will last over time.

Poverty in Pakistan (Case study)