2. Reasons of poverty in Pakistan
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 do not
meet international standards and
results as decrease in revenue
which lead the society to poor
financial conditions
3. over population
• The growth rate of population
in Pakistan is very high hand is
among the highest in the
world. Since 1947, the
population has become more
than triple. Pakistan is almost
touching 180 million
marks.With limited resources it
is very difficult to control the
growing population. The
massivelyincreasing
population has almost
outstripped the resources in
production, facilities and in
job opportunities
4. Imbalanced taxes
• Pakistan’s tax system shows
unfortunate proof of the
government’s corruption. The
system does not differentiate
between varying levels of
income, but instead focuses
significantly on the poor. In
fact, 80% of the tax
recovery comes from the poor
for services including utilities,
petrol and mobile
communication. Meanwhile,
the taxes collected from the
rich do not exceed five percent.
•
5. unemployment
• :Pakistan is poorly faced with
the problem of unemployment.
The existing unemployment
rate is 15%. Thousands of
youngdoctors, engineers and
other educated people are out
of job. There are no
opportunities for youth to
utilize their capabilities or
abilities in rightdirection.In
this way rate of poverty
increases
6. Low national income
• Poverty in Pakistan is also the result of low level
of national income. Low level of national income
means low level of saving and low level of
investment. All these factors contribute toward
poverty
7. Inflation
• :High rate of inflation is an
extra reason for poverty. Due
toinflation much amount of
money is not enough to
purchase much amount
ofgoods and services. Inflation
decreases the savings and
investments of poor people
and they remain poor.
8. privatization
• :Government is unable to
manage the departments and
country has low reserve assets.
So some companies run by
government are sold to foreign
investors. The services
provided by the companies are
becoming costly. For example
if government sold a gas plant
then prices for gas in country
rises
