COMBATING POVERTY

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Present Government has used a new indicator methodology by which to measure poverty. It is called the Multidimensional Poverty Index, and it uses metrics like education, health and standard of living, thus giving a more detailed understanding of poverty.This makes it a slightly superior methodology compared to the traditional measurements that use income, consumption and wealth as the main dimensions, thereby enabling a more comprehensive view of poverty in the country.

According to the country’s first ever official Multidimensional Poverty Index (MPI), which shows a sharp decline with national poverty rates falling from 55 % to 39% from 2004 to 2015. The headcount of multidimensional poverty in FY2015 was 38.8 percent while the intensity of deprivation is 51.0 percent.  Since FY2005, multidimensional poverty has continuously reduced in Pakistan.  The headcount reduced from 55.2 percent to 38.8 percent between FY 2005 and FY 2015.

The report states 38.8% of Pakistan’s population lives in poverty. A majority of the rural population (54.6%) lives in acute poverty while this ratio is only 9.4% in urban areas. Among the provinces, multidimensional poverty is the highest in Balochistan and the lowest in Punjab. The poverty came down largely because of the growth in the informal economy. “It is unfortunate that many millions are still left behind. Pakistan has set zero poverty goal much before the year 2030, reduction of multidimensional poverty is one of the core objectives of Pakistan’s Vision 2025.

Inclusive and balanced growth, which benefits everyone and especially the marginalized communities, is government priority and is essential for promoting harmony in society.

WHAT FEDERAL GOVERNMENT IS UPTO?

Since assuming responsibilities, the present government has focused on reaching out to the most deserving segments of the population in underserved areas. The  government  is  fully  committed  to  follow  a  sustained  poverty  reduction  strategy  and  to allocate  a  minimum  of  4.5  percent  of  GDP  for  social  and  poverty  related  expenditures.  The government  prioritized  17  pro-poor  sectors  through  the  Medium  Term  Expenditure  Framework. Expenditure on pro-poor sectors in 2011-12 stood at 9.7 percent of GDP. In 2012-13, these were 8.5 percent of GDP and in 2013-14, 7.7 percent of GDP. These expenditures were well above the requirement under the law.  During  2014-15,  total  expenditures  for  these  sectors  were  increased and amounted to Rs 2,162.7 billion, which was 7.9 percent of GDP. During July-December of the current fiscal year 2015-16, Rs.  1,123 billion expenditures have been made in these sectors.

Per Capita Income, which stood at $1334 in FY2012-13, is projected to increase to $1561 in FY2015-16, showing a growth of 17% in dollar terms, while it increased by 24% in terms of rupee.

BENAZIR INCOME SUPPORT PROGRAME

BISP is continuing to eradicate extreme poverty through provision of cash transfers. The monthly installment was enhanced by the present government to Rs. 1200/ per family in July, 2013 which has subsequently been increased to Rs. 1500/per family in 2014. The present government has yet again increased the annual stipends from Rs.  18,000 per annum to Rs.  18,800 per annum per beneficiary w.e.f. 1st July, 2015

The  present  government  has  increased  the  BISP  budgetary  allocations  from  Rs.70  billion  in FY2013 to Rs. 75 billion in FY2014, which has subsequently been enhanced to Rs. 97 billion in  FY2015 and for the fiscal FY2016-17 r it has been enhanced to Rs. 115 billion which representing a nearly three-fold increase since 2012-13

The  number  of  BISP  beneficiaries  is  expected  to  increase  from  5.0  million  in  FY2015  to  5.3 million by the end of FY2016. By the end of next financial year the number of beneficiary families would further rise to increase to 5.6 million.

So far, BISP has achieved all the targets set under IMF’s Extended Fund Facility which has been acknowledged by IMF in eleventh review meeting held in May 2016.

PAKISTAN POVERTY ALLEVIATION FUND

Pakistan  Poverty  Alleviation  Fund  (PPAF)  also  provides  assistance  in  microcredit,  water  and infrastructure,  drought  mitigation,  education,  health  and  emergency  response  interventions.

During  July  2015  to  March  2016,  PPAF  has  disbursed  an  amount  of  approximately  Rs.11.96  billion  to  its  partner  organizations  (POs)  under  PPAF  core  interventions  administered  under various operational units. 

An amount of Rs.  5303.53  million  is  distributed  in  bulk  for  Zakat  amongst  the  provinces  and other administrative areas for FY2016.

Pakistan  Bait-ul-Mal  (PBM)  is  also  making  efforts  for  eradication  of  poverty  by  providing assistance.  During  July  2015  to  March  2016,  PBM  has  managed  to  disburse  an  amount  of  Rs. 3132.39 million to its core projects.Bait-ul-Maal Budget for next financial year has been increased Rs.4 billion.

The efforts of the present federal government are another milestone in inculcating prosperity at grass root level.