Addressing poverty and inequality in the mountains of Pakistan

Abstract

This paper examines poverty and inequality in Pakistan's mountains, using nationally representative data. Our analysis reveals that, despite a slight decline in poverty rates, overall rates remain alarmingly high, with significant variations across provinces and regions. Rural and mountain areas exhibit higher poverty rates (31% in rural areas, 13% in urban areas in 2015/16) compared to urban centers. The national incidence of multidimensional poverty in 2014/15 was 41%, surpassing monetary poverty rates. Notably, rural areas (47%) experienced significantly higher multidimensional poverty than urban centers (12%), with Balochistan’s mountainous province recording the highest rates (63%). The four provinces display significant heterogeneity in multidimensional poverty, with district-level variations ranging from 10 to 90% in Khyber Pakhtunkhwa and Balochistan. The majority of districts with high poverty incidence are situated in mountainous regions, where people face multidimensional challenges in accessing basic facilities such as health and education, cooking fuel, and housing. To address this issue, Pakistan needs to prioritize mountain areas and implement targeted programs aimed at improving access to basic services, addressing gender inequalities, and promoting sustainable development.