Poverty assessment: Pakistan's case

Abstract

This study attempts to determine the poverty-line and the incidence of poverty in Pakistan by using data of the latest Household Integrated Economic Survey: 1990-91. The study uses a different approach and methodology in respect of earlier studies of the subject. The approach is that of the "Basic Needs', which defines the poverty-line in terms of minimum expenditure on all needs, food as well as non-food. The methodology used in estimating the minimum expenditure on various needs is based on the "extended linear expenditure system (ELES)'. For the year under review, the total poverty-line was estimated at Rs 374 per capita per month, with the food poverty-line at Rs 191. A comparison with the income levels reported in the Survey revealed that roughly 47% of the population had an income less than this threshold level expenditure on all needs, the shortfall or gap being almost 25%. The proportion of population with an income less than the threshold expenditure on food alone was found to be 10%. In certain respects, the results were quite different, quantitatively as well as qualitatively, from earlier studies. -Author