Poverty in Pakistan and Community Development

(1) Within South Asia, Pakistan is lagging more in human development than in economic growth. (2) Incidence of poverty (headcount of those individuals whose consumption expenditure is below the poverty line) is high at more than 30%, about 40 millions in absolute terms, and increasing rapidly in the late 1990s. (3) Income poverty is more severe in rural areas, among the landless, and closely correlated with deprivation in education and health. (4) Macro performance during the 1990s was not pro-poor because the growth rate was lowered and the labor absorption capacity of economic growth was reduced [Kurosaki 2003]. (5) The income poor in Pakistan not only suffer from average low consumption but also are subject to high fluctuations in consumption due to income risk and the lack of safety net measures. The landless are more deprived than the landed if we focus on vulnerability [Kurosaki 2004]. (6) In rural areas, permanent non-farm employment is associated with the exit from poverty. Education is key to such employment [Kurosaki 2001]. Livestock is more pro-poor than crop agriculture [Kurosaki 1995] but its role in economic growth may be limited to short- to middle-run. (7) Social safety nets are weak, especially those provided by the public sector or by formal institutions