It is always good to quantify the things in order to make the discussion more accurate and precise. Keeping in view this fact, let us now put forth the essence of our discussion into the tunnel of facts and figures and see the effect of these two things on the total picture of the country. Here we are looking at some the very important figures that pertain to our country.
According to the planning commission of Pakistan, in three years poverty rate in Pakistan is increased by 14%. According to the human development index 63% of the people earn less than $2 per day in the country and about 23% of the people of the country live on under $1 per day. The major underlying cause of poverty in Pakistan is the unequal distribution of income and wealth. About 27% of the total income of the country is earned by 10% of the total population of the country. As the gender inequality in Pakistan also prevails, so the women as compared to the men have got the lesser chances of employment opportunities in labor market of the country. Studies have shown that the participation rate of women is just 13.7% in comparison of men whose participation rate is 70.4%. studies have shown that the income inequality trend is different during 1990s from the decades of 1970s and 198s.evidence find out an increasing trend of income inequality in Pakistan 1987-88 and 1992-93, in which the urban inequality remain unchanged while rural inequality rise between 1987-88 and 1992-93, finally it increased in all regions in 1998-99.economic growth is going towards declination during the decade of 1990s, which in result affect the poorest segment of the population and thus creates a higher in inequality in Pakistan. Statistic result show that the consumption inequality is not the stable, throughout the period of 1990-91 to 2004-5, poorest people 20% and middle income people 60% lost their consumption share, whereas the richest people gained the 20% of their consumption share. Studies have shown that the income inequality and poverty if increased by one percent in rural areas of Pakistan will generate an increase in income inequality and average income in rural areas of Pakistan which in result give a rise and decline at the rate of about 0.31 percent and 0.27 percent in poverty.
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