Poverty is a widespread global issue, with over 3 billion people living on less than $2 per day. Absolute poverty refers to a lack of access to basic needs, while relative poverty means having a low income compared to others in one's society. Poverty traps people in a cycle of poor health, lack of education, and lost opportunities that is then passed on to future generations. Some of the major causes of poverty include lack of economic growth, political instability, natural disasters, and lack of access to education, healthcare, and other resources. Addressing poverty requires tackling its complex social and economic roots.

1. Poverty

2. Poverty
Absolute Poverty : A situation where
individuals don’t have access to basic requirements of
life –Food, Shelter and Clothing
Relative Poverty :is a poverty measure
based on a poor standard of living or a low
income relative to the rest of society.

3. Poverty
 Half the world’s population, about 3 billion, live on less
than $2 per day.
 Malnutrition, lack of health care, substandard
housing, and illiteracy breed desperation, disease and
daily suffering.
 Poverty traps future generations in a vicious cycle
without hope or opportunity.

4. Poverty Statistics
 Almost 30,000 children under the age of five die
 Approximately 790 million people in the developing
world are chronically undernourished.
 Nearly a billion people entered the 21st century unable
to read a book or sign their names.

5. Difference between “Poor” &
“Poorest”
 The term “poorest” or “very poor”
refers to people
living on less than $1 per day or
in the bottom half of those living
below their nation’s poverty line.
 The term “poor” means those living
in poverty above $1 per day or the
upper half of those living below
their nation’s poverty line.

6. Causes of Poverty
 Decline in overall national
growth
 Political instability
 Natural disasters
 Corruption
 Socio-economic
disparities.
 Lack of access to
education
 Lack of infrastructure
 Lack of relevant laws
&administrative
procedures
 Lack of access to
investment & credit,
complete market
information

7. Effects of Poverty
 All or most of the money earned go to basic survival.
There is little or no money left to improve quality of
life.
 Living in poverty almost always means that the harsh
reality of today will repeat itself tomorrow.

8. Effects of Poverty, continued…
 Poverty breeds poverty. If one cannot afford proper
nutrition or health care for one’s family, children grow
up at greater risk of acquiring a life threatening or
disabling disease.
 If one cannot afford to educate one’s children, it will
be a repeat of their parents’ life
 If one cannot afford to buy one’s own land or home or
livestock, there are few opportunities to build assets
that will last over time.

9. The 5 Poorest Countries Of The
World
1. Democratic Republic of Congo (GDP – per
capita: $300)
2. Republic of Liberia (GDP – per capita: $500)
3. Republic of Zimbabwe (GDP – per capita: $500)
4. The Solomon Islands (GDP – per capita: $600)
5. Republic of Somalia (GDP – per capita: $600)

10. Causes of Poverty In Pakistan
 Government Bad Policies
 CORRUPTION
 Inflation
 Smuggling
 Overpopulation
 Unemployment
 Lack of education
 Law and order situation
 Foreign Investment

11. Government’s Expenditures
 It is estimated that around 5 Crore is spent on the
security of Prime Minister and the President
 Monthly expense of 1 minister = 30 Lacs, Monthly
expense of 96 minister = 288000000 (28 Crore80 Lacs

12. CORRUPTION
 It’s a condition when People forget about mortality, and
don’t care about the fact if money is being earned by fair
means
 Only one relationship that is exists in society is money. One
has to pay a heavy cost to get his right.
 Institutions have failed to provide justice to common
Citizens.

13. Inflation
 Poverty in Pakistan is increasing because of general
rise in prices of all products in Pakistan
 Hence, it decreases purchasing power of people
earning low earnings/Wages/Salaries.

14. Smuggling
 Pakistan was recently facing the shortage of sugar and
wheat due to the smuggling these items to
neighboring countries.
 Pakistan is the 7th largest wheat producer, it’s
consumption was 20 Million ton and produced 23
million ton recently
 Similarly Pakistan is the 4th largest sugarcane
producing country, but due to stocking habits of it’s
owners…It was facing severe sugar crises

15. Unemployment
 International Labour Organization defines, occurs
when people are without jobs and they have actively
sought work
 Unemployment rate in 2009was 7.40 which is doubled
in 2010, the current rate is15.20%
 When peoples are unemployed they consume
the resources but are unable to
contribution overall economy,
which results in overt.

16. Law and Order Situation
There are lots of problem regarding Law & Order
situation in Pakistan
 Terrorist attacks create uncertainty in stock marks and
people earnings from stock are getting loss due to
which the whole country faces uncertain increase in
commodity prices
 Local Industries, Firms, are unable
to sign agreements with foreign
investors due to prevailing law
order situation

17. Role of IMF
 IMF loans usually come with conditions, restrictions and
requirements imposed by IMF on the borrowing country
 Pakistan is also seeking the help from IMF on very
dangerous conditions which are causing more poverty in
the country. Some of the conditions are Listed Below:
 Put an end to subsidies on all products.
 Taxes should be increased.
 Govt. expenditure should be stop.
 cut military spending by almost a third

18. Solutions to remove poverty
 Govt. should make the Policies in Favor of Pakistan, and
Pakistani people.
 Govt. should not waste national assets and utilize them to
remove the poverty
 Corruption should put to an end and Judiciary should take
some action against corrupt people.
 Population rate should be controlled.
 Govt. should make policies to provide employment to the
Labor force.