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Poverty in Pakistan

Updated on September 30, 2009

Intro to Poverty & Pakistan

Pakistan is facing poverty due to many factors involved in making such circumstances in the in Pakistan. IBRD (International Bank for Reconstruction and Development) issues annual report of a country which shows the indicators which effects positively or negatively the Country. These indicators are named as “World Bank Indicators” According to report of 2007 of Pakistan issued by IBRD there were 765 indicators (factors) and these increases every year. 765 Indicators means that 765 factors are there in Economy of Pakistan which may take it to successive way or may be harmful for Pakistan.

Major Indicators involved in Economy of Pakistan

· Poverty

· GDP

· GNP

· Unemployment

· Savings

· Foreign Investment

· Foreign direct investment

· Investment & many more

Don’t forget that Development or Economy of any country may not be measured by any of the indicators mentioned by IBRD or the major one, to understand the Economic Condition of any country you must need to have a very close view to all the indicators involved in it.

I being a student of Management sciences read Pakistan economy as a subject and respected teacher guided us a lot to understand Pakistan Economy, I’m here discussing “Poverty as major indicator involved in Economy of Pakistan”

Criterion of Poor

The criterion of poor is that if a person is not earning US $367.00 per is year considered poor but this was repeated later on the criterion is changed and now it’s US $ 2.00 per day.

• Dr Ishrat Hussain (X-Governor of State Bank of Pakistan was MSc. Chemistry and Awarded Scholarship by Pakistan to do PhD., but he returned as PhD of Economics)
He writes in his Book “Pakistan, The Economy of Elitists” that “The Federals and the Landlords of Pakistan are the Major Hurdle in the way of development of Pakistan”

• Micheal P. Todaro “M.P. Todaro” writes in his Book “Development Economies in 3rld world” writes that “There are long and long Boulevards in the developing countries where huge Bungalows are there. In these Bungalows 2-3 Family members are living whereas a small cottage is also adjusted to that Bungalow where poverty is dancing and a younger girl is having relatively better living standards among them and no one to ask her the sources of resources.

• Dr Haq again writes in his another book “ Poverty Curtain” that There are seven sins committed by policy makers and Economist, due to those reasons Pakistan faces Poverty

1. Divorce between Planning & Implementation
2. Number Game
3. Excessive Control (Army, MNCs, Other Countries, Bureaucrats)
4. Development Fashion
 40-50s Industrialization
 50s Export Promotion
 60s Import substitution
 Mid of 60s Agriculture development
 70s Socialism
 80s Islamization
 Late 80s Privatization
 90s Unbalanced Grwoth
 2000s to onward Liberalism and War against territories
5. Investment Illusion
6. Neglect of HR
7. Growth without Justice

Major Causes of Poverty in Pakistan

• Lack of Effective Demand
• Population Pressure
• Lack of Investment
• Absence of Solid Industrial Estates
• Sudden fluctuation in Demand and Supply
• Shortage of Capital
• Market imperfection
• Low literary rate
• Inflationary pressure
• Low Foreign Investment
• Dead/Zero Sum Investments
• Structual distortation
• Bad Educational System
• Govt. doesn’t work to create more Employment opportunities

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    • profile image

      Engineer Ishrat Hussain Mohammad 5 years ago

      All that happens bad is due to our own mistakes, we did not followed the guidance and instructions of Allah and his messenger PBUH, so we have to face the punishment.

      the pakistan was established in the name of Allah, but its peoples did not keep the promise.

      www.allah111.blogspot.com

    • profile image

      shukria tabassum 5 years ago

      WOW JAZAK ALLAH!

      AWESOME N WELLDONE EVRY1.ALL UR VIEWS N THOUGHTS R PRAISABLE.REALLY NICE N THUMBS UP GUYZ.

      WASSALAAM.

    • nilum profile image
      Author

      nilum 5 years ago

      Thanks you Dear

    • profile image

      Obaid ur Rahman 5 years ago

      THANKS TO ABOVE EVERY ONE I ALSO WANT TO ADD SOME THING REGARDING POVERTY,AS WE KNOW THAT INFLATION IS GOING TO TOUCH THE SKY AND GOING UP DAY BY DAY IN OUR COUNTRY IT IS VERY DIFFICULT FOR A COMMON MAN TO SURVIVE HERE IN PAKISTAN,WE EVERY ONE BECOMING POOR DAY BY DAY DUE TO LESS REEL PURCHASING POWER...........

    • nilum profile image
      Author

      nilum 6 years ago

      Thx dear

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      Binaya.Ghimire 6 years ago

      I appreciate your bravery and honesty when you write on politics and social issues. It is interesting to note why people belonging to strong economy commiserate poor while hating poverty. Many times I have been told, by rich people, poverty is there because people are lazy. Pakistan, like Nepal, is poor not because people are lazy but because we were robbed by imperialism.

    • profile image

      sarah 6 years ago

      i live in pakistan and i want pakistan to progress but due some factors pakistan is noot progressing ..............PLZ ALLAH BLESS PAKISTAN WITH UR BLESSING....................................

      (AMEEN)

    • profile image

      Asif Khushal 6 years ago

      Thanks a lot this article help me a lot in my studies.

    • profile image

      Nice 6 years ago

      Find out Nice Hub by clicking on NICE in blue above, it is also a great hub dear.

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      Mehnaz 6 years ago

      Increasing poverty in Pakistan is emerging as the major reason for declining school enrolments, as poor families are sending their children to work, claims the Society for Educational Welfare (SEW) Vice President, Dr Tabassum Jaffery.............

    • profile image

      arslan 6 years ago

      Major Causes of Poverty in Pakistan

      • Lack of Effective Demand

      • Population Pressure

      • Lack of Investment

      • Absence of Solid Industrial Estates

      • Sudden fluctuation in Demand and Supply

      • Shortage of Capital

      • Market imperfection

      • Low literary rate

      • Inflationary pressure

      • Low Foreign Investment

      • Dead/Zero Sum Investments

      • Structual distortation

      • Bad Educational System

      • Govt. doesn’t work to create more Employment opportunities

    • profile image

      AMAN SHAH 6 years ago

      the major cause in high ratio of poverty in pakistan is corrupton, bocz corrpted pepole dont care of ppl.nd they r runing behind money

    • JamshidQamar profile image

      JamshidQamar 6 years ago from Faisalabad

      Nice writings, let's talk about the solution otherwise it might lead us to Terrorism.

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      Tahir Mosvi 6 years ago

      In Pakistan the Poverty is extremely considerable .people make suicide,Parents killing their children,patients can not afford treatment expenses ,students compelled to quit education crimes are on their peak,But unfortunately the present government is totally unaware what is the situation and what is happening in Pakistan.They just think to complete their five years tenure,for that they have to make any type of commitment,But they do not have any fear about people.Government should be sincere and stop corruption ultimately they will get chance to complete the five years tenure.They should focus their maximum attention for the betterment of their public and their state.And stop America involving in the internal affairs of Pakistan.The Government should make polices involving expertise,with the blessing of Almighty God, there is no lack of expert persons in all fields.Reducation ,elimination and eradication of poverty is extremely necessary to save the future of this state.

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      Aadi 6 years ago

      Thank You Very Much Nilum.............

    • profile image

      Aena khan 6 years ago

      Thanks for writing this It;s acknowledged me.

    • profile image

      khalid ali 6 years ago

      thanks i realy need it

    • profile image

      SARAJ(BBA) DADABHOY INSTITUTE 6 years ago

      THANKS TO ABOVE EVERY ONE I ALSO WANT TO ADD SOME THING REGARDING POVERTY,AS WE KNOW THAT INFLATION IS GOING TO TOUCH THE SKY AND GOING UP DAY BY DAY IN OUR COUNTRY IT IS VERY DIFFICULT FOR A COMMON MAN TO SURVIVE HERE IN PAKISTAN,WE EVERY ONE BECOMING POOR DAY BY DAY DUE TO LESS REEL PURCHASING POWER...........

    • profile image

      rana eana ejaz 6 years ago

      thanks a lot for suggestion about poverty.thanks for writing this.you also solve my problem about poverty discousion.

      nilum u also right.thanks

    • profile image

      ahsan qadir 6 years ago

      thanks

    • optimist adil profile image

      optimist adil 6 years ago from k2 mountain

      nice hub nilum abd i thing v should play a vital role to finish this poverty as i have already done my peace visit of all Pakistan via cycle and i had gain a lot of success form my this tour being a young generation v can change this country form our efforts and determinations remember lest but not last gr8 country u can visit my tour work and xperiences at face book logo at my name (adil lahorei) and become a part of my peace & environmental mission thanx

    • profile image

      Waseem Afzal Bhatti 6 years ago

      it's the time to move on

    • nilum profile image
      Author

      nilum 6 years ago

      Dear Rose Thank You

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      wild rose 6 years ago

      very perfctly written!

    • nilum profile image
      Author

      nilum 6 years ago

      THanks Dear for your comments

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      Idrees Ahmad 6 years ago

      Nilum, i am member of a charity and writing a paper on povert in Pakistan which will be published on their website- can take your "Intro to Poverty & Pakistan"

      thanks

      regards

      Idrees Ahmad

    • nilum profile image
      Author

      nilum 6 years ago

      Thanks for commenting

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      laiba malik 6 years ago

      poverty is realy big issue in pakistan

    • profile image

      Shaukat Masood Zafar 7 years ago

      CASE STUDY OF ZARAI TARAQIATI BANK LIMITED---ITS ROLE IN DEVELOPMENT OF FOOD AND FIBRE PRODUCTION---ITS FUTURE.

      Agricultural production has long been a mainstay of the Nation’s economy, successfully feeding and clothing the domestic population as well as exporting agricultural goods. Although the ZTBL has played a vital role in agricultural development in the past, it can, however, be only as much effective as the effort put into it in a planned, organized and coordinated way. Unfortunately, the importance of proper planning for development of agriculture had never been realized by the Bank management after mid-nineties to the extent this sector demanded. Being ex-officer of the Bank I intend to share my experiences during my service in making a general analysis of the basic factors that have limited the capacity of the Bank and resultantly the agricultural production, and to identify the role which an institutional credit agency like ZTBL was required to play for effective acceleration of the efforts to achieve the goal of maximum agricultural production.

      HISTORY OF ADBP (NOW ZARAI TARQIATI BANK LIMITED)

      • Banking is traditionally an industry that calls for utmost prudence and eternal vigilance in securing the safety of public funds and retaining public confidence. Stability of a bank is always based on continued public trust and solvency. Prior to mid-eighties, the Bank employees looked to the character, capacity and capital of the borrowers, while considering their loan applications. There was no corruption in the Bank on a significant or debating level. Consequently one never heard of charge sheets or employee-dismissals for acts of misconduct or corruption. A charge sheet was considered a serious weapon and was rarely used. Banking skill and knowledge consisted more of business content and less of needing a professional qualification as far as credit delivery techniques were concerned. If one were to learn the primary thumb rules of safety, security, liquidity and profitability, and basics of negotiable instruments act, he successfully managed the Branch of the Bank. Under-graduates and matriculates could control not only Bank branches, but hold responsible position even at the Head Office. Failure was an exception, and when an individual case occurred, it was felt as a dooms-day by the bank management. It was not professionalism, but pragmatism, sound commonsense, personal integrity and cleanliness that ruled the day. Today the Bank officials are not perturbed if bad advance even to an extent of rupees 5/10 lacs emerges. No one has time or concern to ponder and correct the rut that is now found commonly everywhere.

      • The situation qualitatively changed after mid eighties. Old dedicated and experienced field staff was replaced by “agricultural Graduate” MCOs. During nineties top management also withered away due to natural process of superannuation and retirement. The new leadership that inherited the top layers was ill prepared to shoulder the added new burden. It lacked the traditional banking culture of trustworthiness and prudence. Selfish opportunism and adhoc adventuresome characterized the new management. They lacked vision. Personal greed replaced prudent goals for securing the Institution's interests.

      • Why all this happened? Why wrongdoings emerged on a vast dimension in the new era, while things were smooth and fair earlier? Why the bank became inefficient and corrupt when qualified agricultural graduates and postgraduates were inducted in the system, while it remained more care taking and competent earlier with high-school passed and under graduates managed the show? The employees were then vigilant to protect and safeguard their assets, but today it is an irony that bank executives are increasingly coming under the preview of vigilance scrutiny. The custodians of public trust and confidence are increasingly becoming untrustworthy. There is today an urgent need for strictly guarding the guardians of the Bank.

      • The feeling of false security, wrong business objectives, and the effect of political influence exerted on the Bank in its day-to-day administration adversely affected the management of the Bank. Remote directions for routine business operations of the Bank acted to the detriment of the innate initiative, self reliance and efficiency of the senior and middle level management within the Bank. They became dumb rubber stamps to blindly ditto whatever instructions were received from the external controllers. Lack of professional training, quick promotions (vertical ascendancy without horizontal movement and without gaining experience in multiple disciplines) of the top and middle management, and cross-country transfer of staff, without planning a regular career path for them resulted in unplanned deployment of the unprepared human resources leading to imperfect operations.

      • The Bank faced no major crisis before mid-nineties, when the personnel of the old top management were continuing and steering the course of management. But after the mid-nineties when the new generation of those in the junior cadre succeeded to top executive posts and took control of the Bank, things started drifting. The new generation of top management setup came to occupy positions exclusively on the strength of quick promotions, after putting in few years of service in the middle posts in the hierarchy. A quickly erected structure lacked stability and durability and similarly these instantly developed top executives lacked the vision and foresight that their job demanded. They lacked expertise in management needed for administering a huge corporate organization like ZTBL and motivating and activating several thousands of staff members in a goal oriented direction. The new top management inherited status and ego, but lacked personality and image to motivate, vision to foresee and commitment to supply a long-term culture and growth path. Human resource development could not keep pace with the rapid Business growth. Business remained appreciating but human resources development kept on depreciating.

      • The executives regularly hold meetings, but no serious and sincere concern or discussion about the affairs of the Bank takes place in those meetings. The top most executives intended to provide collective wisdom and inter disciplinary expertise acts as a mere rubber stamp, leaving the field exclusively to the whims and arbitrary fancies of the Regional Managers. This absolute power with no in-built checks and controls on the Regional Managers served as the main crippling effect for the decay and downfall of the Bank.

      • This atmosphere became a fertile ground for breeding widespread corruption at different centers, starting from the Head Office, and extending to the Regional office and finally the Branches. Chairmen of the Bank occupied arbitrary powers in a brief period of contract tenure, sure to be terminated at the near future. They lacked vision, foresight or motivation for long-term building of an edifice or culture for the Bank, but were looking only towards short-term objectives.

      • The Bank had its own terms and ruled its own territory without competition. On the one hand debt liability of the borrowers continued inflating due to high rate of corruption prevailing amongst the Bank employees and on the other hand the Bank imposed exorbitant interest rates and exploited the farmer’s community with impunity. To show the better achievement in recovery of loans, the borrowers were advanced frequent loans for adjustment of their previous debts which naturally resulted into over-financing, beyond the repaying capacity of the borrowers. Unfortunately, Bank management was unable to see far enough in the future the implications of this window dressing. Business growth continued, as it is persisting even today, but emergence of NPLs in the balance sheet of the Bank crippled its profitability and reduced its capital adequacy. The Bank started to be categorized as loss showing bank. The concept of the Debt Restructuring Plan was the logical means of resolving the deadlock between borrowers and the Bank. But it was a far-fetched idea not in co

    • nilum profile image
      Author

      nilum 7 years ago

      Anam You have asked a very good question but its truly hard to explain here

      Thanks Maqbool

    • profile image

      Maqbool Lashari 7 years ago

      gooood article.i'm proud of u bkz u write a major problms of poverty.....

    • profile image

      anam 7 years ago

      plz tell me abt ,what should be the question about issues in pakistan economy if we are going for survey?

    • nilum profile image
      Author

      nilum 7 years ago

      Pakistani

      Pakistan is always lacking behind because of upper management issues that need to be resolved by the power of youth and unity

    • profile image

      Pakistani 7 years ago

      Nice Post! I like the way you have described about the main issue in Pakistan. Pakistan Is a beautiful country and I think all super power countries and rich countries will make joint efforts to eliminate the problems of Pakistan. Poverty is the biggest issue in Paksitan right now.

    • nilum profile image
      Author

      nilum 7 years ago

      Thanks

    • warrioRR profile image

      warrioRR 7 years ago from Rawalpindi Pakistan

      I Agree

    • nilum profile image
      Author

      nilum 7 years ago

      I really feel about those people who live their life in such hard circumstances, we can just hope and pray for better

    • Hummingbird5356 profile image

      Hummingbird5356 7 years ago

      I have visited Pakistan and have seen some of the poverty. It is terrible and I pray that the future brings better things for the country and its people. Literacy or the lack of it is an important factor in poverty.

      Thank you for this hub.

    • nilum profile image
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      nilum 7 years ago

      Thanks !!!

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      rajbizzness 7 years ago

      you are right

    • nilum profile image
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      nilum 7 years ago

      Thanks !

    • nilum profile image
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      nilum 7 years ago

      Thanks !

    • ethel smith profile image

      Eileen Kersey 7 years ago from Kingston-Upon-Hull

      Such hardship

    • nilum profile image
      Author

      nilum 7 years ago

      Oh thank U very much for such valuable sharing with Us...

      Thanks !! and if something wrong you must guide us

    • AdsenseStrategies profile image

      AdsenseStrategies 7 years ago from CONTACT ME at Adsensibilities@gmail.com

      Let's face it, if 4 out of six people in the world live on ten dollars a day or less (less than 4000 dollars a year) yet the average Canadian (for example) makes literally ten times that, this is simply a problem of injustice on a mass scale.

      When children die for lack of a 12 cent malaria shot, because their families can't afford twelve cents(!), yet people in the West will spend more than a dollar on a bottle of water they could've gotten free from the tap, there is something very very wrong. Come to my hubs -- I have a few on poverty, micro-credit, etc.

    • nilum profile image
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      nilum 8 years ago

      Thank U Dear

    • tdarby profile image

      tdarby 8 years ago

      Thank you for the info--what a well written hub.

    • nilum profile image
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      nilum 8 years ago

      Ya You are totally RighT

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      ATIQ UR REHMAN MIRZA 8 years ago

      The major cause is dishonesty in the country. The Apathy is the second one. These two diseases are everywhere in Pakistan. You can see these in Public/private life, in Cities/town and villages.

    • nilum profile image
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      nilum 8 years ago

      My Pleasure to share, actually the main cause of failure in development in Pakistan is that youth is not interested towards such activities and they actually don't care and they don't want even to do such things which will take them towards permanent growth

    • sarovai profile image

      sarovai 8 years ago

      Pakistan should concentrate on developmental activities and education to eradicate poverty.Thank u for sharing.

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      umair 8 years ago

      poor remain poor until theyirb thinking is poor.

    • nilum profile image
      Author

      nilum 8 years ago

      I totally agree with you jann321, but i must say that the problem starts from top level: so lower and middle level is also facing such things

      Yet we are hopeful for betterment and ya Ofcourse we the youth; can change it with their power...

    • nilum profile image
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      nilum 8 years ago

      Thanks Sumaira ! mY pleasure to help out all the sutdents

      Thanks bala99; yeah you are right its real and common problem, i felt i must share it so i did

    • bala99 profile image

      Bala Subrahmanyam Vishnubhotla 8 years ago from Hyderabad, Telangana, India.

      What you have listed are common problems of South Asia and the third world. Very sad, but very real.

    • profile image

      Sumaira 8 years ago

      Thanks, for wriiting this, I was searching Data for my Project and your Article helped me a lot