Estimation of poverty bounds for Pakistan using synthetic panel data

Abstract

Poverty is a big threat to prosperity in developing countries like Pakistan. Alleviating poverty needs concerted efforts including how to measure and analyze poverty. Therefore, this paper employs synthetic panel technique and uses repeated cross-sections household survey dataset (Household Integrated and Economic Survey (HIES)) of Pakistan for 2010–11 and 2015–16, to derive poverty bounds for Pakistan. The findings of the paper suggest that 17% of population still remains in poverty in 2015–16 as they were in 2010–11. They don’t move in or out of poverty. In the same periods 19% population affected by poverty. The 2.5% poor’s of 2010–11 moves out of poverty in 2015–16. This constitutes the first attempt to provide an insight into poverty dynamics in Pakistan using the available survey data.