The Nature of Poverty and its Prospects: Pakistan Evidence

This study finds that poverty alleviation programs, driven either by subsidy or income, have been unsuccessful in Pakistan. The poor lack access to basic services like education and health-care. The study finds that trends have been uneven during the study period and identifies various reasons for the decrease of poverty over time:

• 1970s - increase in prices of farm output and increase in remittances;
• 1980s – social welfare (zakat) distribution, and increase in remittance growth in construction and services sectors;
• After 2000 - introduction of microcredit, Khushhali Bank and spending on poverty-related and social sectors.

The paper concludes that although poverty reduction strategies have good intentions, their implementation has been ineffective due to corruption and unequal distribution of wealth and resources. It calls for better strategies and planning, and emphasizes the positive role of microcredit programs in poverty reduction. The study also recommends that the government should introduce National Database and Registration Authority (NADRA) kiosks and NADRA Swift Centers (NSRC) for deposits of payments to selected companies in order to reduce corruption and distribute wealth equally.