Pakistan's poverty reduction strategy: why employment matters

The Pakistan's Poverty Reduction Strategy and the Draft Medium Term Development Framework recognize that the most effective means of reducing poverty is through the creation of productive and remunerative employment. This paper examines how these objectives can be made operational by examining the characteristics of the labour market in Pakistan. The first part analysis in a historical context the growth-employment -poverty nexus to show how employment and labor market developments have played a vital if not a decisive role in influencing poverty levels in Pakistan. The second part of the paper reviews the current efforts being undertaken to reduce unemployment and improve the deteriorating labor market situation so as to favourably impact on the high levels of poverty and identifies areas where policies and resources-could be more sharply focussed and areas where new initiatives could be launched