RESEARCH PROPOSAL

POVERTY GROWH AND IMCOME INWQUALITY IN PAKISTAN

Pakistan is facing an intricate problem of human conditions. The major issue is poverty
and income inequality. Pakistan urban areas account for one third of the total population and one
sixth of the urban population is considered to be poor that make fifteen million urban poor. Thus,
Pakistan should be ranked four in South and South East Asia by the number of urban poor.
Poverty has various forms, including lack of income and productive resources sufficient to
ensure sustainable livelihood; hunger and malnutrition; limited or lack of access to education and
basic services; increased mortality from illness; homelessness and inadequate housing; social
discrimination and social exclusion; it is characterized by lack of participation in decision
making and in civil, social and cultural life. Poverty in Pakistan has increased from 17.2 percent
in 1990 to 30.4 percent in 1998-99 and it remained 35.6 percent in 2001.

Situation of poverty, income inequality and economic growth remained uncertain in

Pakistan. A large number of studies agree that urban poverty in Pakistan has fluctuated around
40 percent during their sixties, remained close to 20 percent during the eighties and persisted
around 30 percent in nineties. Pakistan has witnessed over three decades of high economic
growth. In sixties in spite of rise in per capita income and decline in inequality (due to impact of
Green Revolution), poverty increased both in the urban and rural areas. In 1970s growth was
accompanied by high income inequality but reduction in poverty levels. Similarly in 1980s
poverty declined (primarily because of migration to Middle East countries). But inequality
increased between 1971 up to mid-eighties. The growth rate declined from 6.1 percent to 4.2
percent during the 1990s. During 1990s the rate of growth decreased, and was almost nil at the
end of decade. During this period poverty increased from 17 percent to 32 percent and also
inequality increased.

The relationship between poverty, growth and income inequality has been a most
debatable point and is the heart of development economies. The issue of poverty is as old as
economic development. A significant quantitative research on relationship between poverty,
growth and income inequality has been undertaken for many decades all over the world in
general and in developing countries in particular. But currently due to massive migration to out
of country for the purpose of job, hike in prices and increase in medical, housing and education
expenditure, it is necessary to re-examine the link between poverty, growth and income
inequality. Fundamentally, the importance of this study lies in fact that it will examine the
situation of poverty and relationship or correlation that exist between economic growth,
inequality and poverty in Pakistan. In additional it will help in detailing out the relationship that
exists among the phenomena.
 The study will also be significant that it will proffer recommendation to government,
policy makers and other stakeholders in the current war against poverty and income inequality in
Pakistan.

OBJECTIVES

The objectives of my studies are:

 To examine the poverty situation in Pakistan.

 Assess the impact of economic growth and income inequality on poverty and vice versa.
 To proffer appropriate solution/recommendation to desired authorities on how to remedy
the situation.