• A state or condition in which a
person or community lacks
the financial resources and
essentials to enjoy a minimum
standard of life and well-being
that's considered acceptable in
• For example a person may not
have enough money to pay his
Family break up
Bad area to live in
Criminality for money
Low paid, difficult work
Non income Poverty
It happens when a household takes in
less income. This means that people will
not have enough food or medicine and
they will have poor clothes and houses.
Income poverty is due to people not
having access to money or other assets. If
people do not have any other assets like
land to grow their own food, then
income poverty can result in stunted
growth and early death.
NON INCOME POVERTY
It happens when people may have a
little bit of money but otherwise the
quality of their life is not good. They do
not have access to affordable social and
physical services (schooling, health care,
medicines, safe water, good sanitation,
good transport) and they may not feel
safe in their homes either because they
cannot trust the authorities or because
they belong to some particularly
Poverty is defined as the situation wherein
one is extremely poor. Situational poverty
occurs when an individual or a group
suddenly faces poverty because of
external circumstances and is usually a
temporary situation. There are a number
of reasons for situational poverty to
emerge, but some of the most common
are: divorce, death of a spouse,
unexpected health expenses, and the loss
of a job.
Generational poverty refers to the
ongoing poverty that is passed down
from parent to child. In economics, this
is sometimes called the cycle of poverty.
• Lack of Education
The literacy rate of Pakistan is very low. Most of people do not
have any concept about the modern earning sources. Most
people are unable to adopt technology for their business
needs, that’s why business don’t meet international standards
and results as decrease in revenue which lead the society to
poor financial conditions.
Unemployment is the major cause of poverty. Unemployment
means no source of income and result is poverty. Rate of
unemployment is 5.5 %, 16 % is underemployed and 20 % is
disguised unemployed in Pakistan.
In our society social bonding are gradually becomes thinner
and thinner. A race of material object has been started even
no one tried to understand the problems of others. People are
not ready to help each other. At last every one has lose his
trust on others which effect our social and economic system
and it is another cause of poverty.
• Low Rate of Capital Formation
Rate of capital formation in Pakistan is very low. Low rate of
capital formation means low opportunities of employment,
low level of productivity and deficit in balance of payment that
leads to poverty. Rate of capital formation is just 5 % and it
should be more than 20 %.
• Improper Income Distribution
Imbalanced distribution of resources is an additional cause of
poverty in Pakistan. This situation leads to increase the gap
between rich and poor. Due to undesirable distribution of
income and wealth, poor population is unable to take part in
economic activities to remove poverty.
High rate of inflation is an extra reason for poverty. Due to
inflation much amount of money is not enough to purchase
much amount of goods and services. Inflation decreases the
savings and investments of poor people and they remain poor.
Rate of inflation is 13.3 %.
• A problem of unemployment become a
commonplace in newspapers to blame
poverty of fueling terrorism by creating a
state of misery and frustration that
pushes people to join terrorist
• Poor families experience much more
stress than middle-class families. Besides
financial uncertainty, these families are
more likely to be exposed to series of
negative events and “bad luck,” including
illness, depression, eviction, job loss,
• Homelessness, or extreme poverty,
carries with it a particularly strong set of
risks for families, especially children.
Compared to children living in poverty
but having homes, homeless children are
less likely to receive proper nutrition and
immunization. Hence, they experience
more health problems.
• Diseases are more widely spread
because poor people cannot afford
hygienic foods and pure drinking water
which is much expensive.
• The guarantee of shelter, healthcare, education, food and
drinking water as basic human rights that must be provided
free to all by the government.
• Providing Health care and education to all and sundry.
• Controlling overpopulation
• Government should reduce the rate of tax .
• Providing more employment (job) oppurtunities to the citizens.
• Giving good pay causing an increase in personal income of the
• Government should provide more facilities to investors
to increase the investment to reduce the unemployment.
• Development of agriculture and industrial sector will reduce
the poverty in Pakistan.