This document discusses the causes of poverty in Pakistan. It identifies several key causes, including unemployment, inflation, corruption, poor governance, overpopulation, a backward agricultural system, and child labor. Unemployment is a major issue, with over 30 million unemployed, and inflation is also a problem as prices have risen significantly. Corruption and unequal distribution of resources also contribute to poverty. Poor governance, law and order issues, a lack of education, and other factors perpetuate poverty in Pakistan.

2. CAUSES OF POVERTY
PRESENTED BY:
AHMED REHMAN (8660)

3. OUTLINE
INTRODUCTION TO POVERTY
TYPES OF POVERTY
CAUSES OF POVERTY
EFFECTS OF POVERTY
CONCLUSION

5. POVERTY
What is poverty?
• A certain level of material deprivation , below which
an individual suffers physically, emotionally and
socially.
•Poverty is a situation in which a person or household
lacks the resources necessary for his livelihood.
• Poverty consists of lack of food, clothing, housing, and
other essentials (moderate poverty) or of food alone
(extreme poverty).

6. POVERTY IN THE WORDS OF
U.N
Poverty is the inability of getting choices and
opportunities, a violation of human dignity.
It means lack of basic capacity to participate effectively
in society.
It means not having enough to feed and clothe a family,
not having a school or clinic to go to; not having the
land on which to grow one’s food or a job to earn one’s
living.

10. TYPES OF POVERTY
ABSOLUTE POVERTY :
Absolute poverty or destitution refers to the deprivation
of basic human needs, which commonly includes food,
water, sanitation, clothing, shelter, health care and
education.

12. TYPES OF POVERTY
RELATIVE POVERTY:
Relative poverty is defined contextually as economic
inequality in live. The location or society in which
people.

13. POVERTY IN
PAKISTAN

14. POVERTY IN PAKISTAN
Pakistan is one of the developing countries facing the
extreme level of poverty having more than one third of
its populace living below the poverty line.
The middle-class has grown in Pakistan to 35 million,
nearly one-quarter of the population is classified poor.
As of 2008, 17.2% of the total population lives below
the poverty line.

15. POVERTY IN PAKISTAN…
Poverty has brought Pakistan face to face with a reality
that it will find hard to accept. Every third Pakistani is
caught in the ‘poor’ bracket which means about 58.7
million out of a total population of 180 million subsist
below the poverty line.

16. Percentage population living on less than
$1.25 /day

17. CAUSES OF POVERTY
IN PAKISTAN

18. UN-EMPLOYMENT:
Unemployment is one of the
biggest problems of Pakistan.
Even a person unemployed who
has ability to do work and is
willing to do work is unable to
get job opportunity .In the
current situation more than 30
lack people are unemployed in
Pakistan and unemployment
ratio is more than 12/.
Unemployment rate in rural
areas is greater as compared to
urban areas.

19. INFLATION:
 Price Inflation in Pakistan has a major
role in increasing the poverty. Un-official
statistics shows that Pakistan is
a country where the income of a person
may be as low as 40 US Dollars per
month.
The prices of majority commodities
have gone up during the last one year.
 For the common man in the society it
has become nearly impossible to
support a family. It has become
extremely hard to fulfill the needs of
children regarding their food, health,
education and entertainment.

20. CORRUPTION:
Corruption, nepotism and jobbery has undermined Pakistan’s
economic infrastructure.
The Rich are becoming rich while The Poor are becoming poor
day by day. This rift between the “haves” and the “haves not”
has bred extremism in our dear country.
 Political giants and feudal lords are living a luxurious life in their
palaces while the poor souls are denied of even basic
necessities of life. Children of our so called leaders are studying
in foreign countries on government expenses while the doors of
education are being shut on poor people’s children.

21. DISTRIBUTION OF RESOURCES:
Pakistan sees its wealth is being withered away with little
betterment to show in the living conditions of the average human
being. People are dying of hunger and disease.
Vandalism and looting of public property is not seen as a crime
against society. Government servant becomes the owner of a
large commercial building and huge portions of agricultural land
in the province.
 it is extremely difficult for an honest officer in the same scale to
meet the fundamental needs of his family

22. DECLINING INDUSTRIAL OUTPUT:
Pakistan, an agriculture country, is rapidly losing its main stay-agricultural
strength with every passing day.
Serious energy shortage, massive electricity failure from KESC
and WAPDA, long spells of load-shedding and falling oil
reserves have brought down our production level and economy
to the worsening ebb.
The load shedding in the country, during the last one year in
particular, has played havoc with the industrial sector, as textile,
plastic, steel and other units have suffered heavily. Around 25
percent of textile units have been closed because of shortage of
electricity while still a number of units are likely to be closed.

23. POOR GOVERNANCE:
Pakistan is facing constant dilemma of poor governance.
Ordinary citizens already struggling to make ends meet are now
increasing numbers.
 Pakistan’s level of human development is low for its level of
income. Because of the poor governance in three sectors,
economic, political and institutional, the country, despite having
huge natural resources, has now entered into stagflation.
The effects of poor governance have compounded the economic
causes of rising poverty such as decline in GDP growth rate,
increasing indebtedness, inflation, falling public investment and
poor state of physical infrastructure. Pakistan is today faced with
a multitude of crises ranging from energy shortages to
breakdown of law and order to violence and terror, creating a
sense of insecurity and frustration.

25. LAW AND ORDER:
One of the root causes of the Law and Order situation in
Pakistan and the biggest hurdle we face in establishing the Rule
of Law and Democracy in this country is Feudalism. Ever since
the creation of Pakistan we have been under the influence and
control of the Waderaas and they still wield that unflinching
influence today.
Pakistani people living in rural have been denied the right to a
fair living, justice, education and fair wages because of the
Landlords of the areas, and that’s what has kept us from
advancing. While the big wigs in the area do what they please
without any fear of Law, and their influence is not limited to their
particular areas

26. LAW AND ORDER:
Terrorism is increasing day by day in Pakistan. Suicide bombing,
theft, target killing and violence are the main examples of poor
law and order in Pakistan and thus this causes poverty.

27. LACK OF EDUCATION:
 Illiteracy is the biggest problem in South Asia and also that
illiteracy is the reason for poverty.
 Level of Education in Pakistan is almost near to nothing that is
why the literacy rate of Pakistan is very low.
The people of Pakistan do not have the basic concept of the
modern earning sources which is being used by the modern
world. We did not even access to the modern ways of education.

29. OVERPOPULATION:
Pakistan is one of the fastest growing countries in the world.
Nowadays Pakistan is the third world country and facing all
kinds of problems, unemployment is at peak, lack of basic
facilities, terrorism, uncertainty and much more. All these
problems are the outcome of poverty and poverty is the outcome
of over population.

30. BACKWARD AGRICULTURE SYSTEM:
 In Pakistan, 65.9 percent of the population living in rural areas is
directly or indirectly dependent on agriculture for their livelihood.
 Rising population, shrinking agricultural land, increasing demand
for water resources, widespread land degradation and
inadequate infrastructure appear to be major concerns of the
agriculture sector in Pakistan.
There is lack of availability of quality fertilizers and pesticides,
tractor and harvester services, vast irrigation system and farmer
education.

31. TAX IMPOSITION:
There is a direct link between growing poverty in Pakistan and
income inequalities due to distortion in the tax base.
The lack of judicious balance between direct and indirect taxes
and levy of regressive taxes in the garb of income tax and
petroleum development surcharge has pushed an overwhelming
majority of Pakistanis towards, and a substantial number, below
the poverty line.

32. FOREIGN INVESTMENT AND TRADE:
Pakistan is the only country which has suffered that much from
food insecurity, acute energy shortages and devastating floods.
 Foreign aid accounts for a larger share in foreign capital flows
into Pakistan, which are supposed to accelerate growth and
development in the country. However, in the presence of poorly
crafted policies, foreign assistance has no significant effect on
economic growth and development.

33. CHILD LABOR:
By child labor we mean children working under the age of 16.
 Child labor in Pakistan is the employment of children for work in
Pakistan, leading to mental, physical, moral and social harm to
children.
 International Labor Organization (ILO) suggests poverty is the
greatest single cause behind child labor.
Poverty levels in Pakistan appear to necessitate that children
work in order to allow families to reach their target take‐home
pay.

35. EFFECTS OF POVERTY

37. BAD HEALTH

38. UNEMPLOYMENT

39. ILLITERACY

40. DRUG
ABUSE

41. violence

42. CONCLUSION
Certain measures and policies should be made by the
Government of Pakistan to control poverty and provide a
better standard of living to people. Different measures like
provision of job opportunities, reduction of inflation, checking
population growth, proper utilization of resources and the
provision of education as well as the establishment of small
scale industries should be adopted. These measures
typically enable the society to sustain itself by providing skills
and the opportunity for investment.