Impact of foreign direct investment on poverty alleviation in Pakistan by using CGE model

The purpose of this paper is to analyze the impact of FDI on poverty alleviation in Pakistan by using CGE model framework The First approach Micro simulation CGE approach which consists of using large number of FDI role in reducing the poverty in Pakistan. The second approach is simple household CGE model in which FDI role in household spending in Pakistan. Consequently this paper makes strong statements and tries to argue its case from the perspectives of the urban- poor. The positions taken and arguments made are not new and may be found in the current development literature. They are also not comprehensive and may be just one side of the coin. Other positions and arguments may be just as valid. Participants at the High-level Regional Meeting are encouraged to voice their views on the issues raised and approaches suggested in this paper during the various symposia. The both approaches systematic positive results FDI has significant role in reducing the urban poverty in Pakistan but in rural poverty is increasing day by day with no significant impact on the rural household. While the issue of poverty has been the direct or indirect focus of development initiatives in Asia and special in case of Pakistan were recently huge FDI investment has been taken place in 1992-07. The poverty has gained prominence only in the last two to three decades. Two basic “levels” or “types" of poverty are identified in the development literature: absolute poverty and relative poverty. The FDI has invested 2,096 million in 2006-07. It has general impact on the urban population. Due to the poor policies made by the government rural household is not getting benefit on it