Multidimensional Poverty in Pakistan: A Regional Analysis

Abstract

Study in hand argues for the multidimensional measurement of poverty in Pakistan. In this regard the study calculates multidimensional poverty indices on the basis of variables that are supposed to reflect persistent deprivations, especially, in the context of Millennium Development Goals (MDGs); eight out of twelve indicators are directly related to MDGs. The study employs Alkire and Foster Measure (2007) on 15512 households in Pakistan by using Pakistan Social & Living Standards Measurement (PSLM) Survey. This study supports the argument that poverty in Pakistan is predominantly a rural phenomenon as 70.68% households, residing in rural areas of Pakistan, are victims of multidimensional poverty as compared to 38.07% in urban areas. Furthermore, various regions of the country like provinces as rural and urban have been ranked, by an appropriate measure of deprivation, from higher to lower level of deprivations as follows: 1-Rural Baluchistan, 2-Rural Sindh, 3-Rural Punjab, 4-Rural KPK, 5-Urban Baluchistan, 6- Urban Punjab, 7-Urban KPK, 8-Urban Sindh. The study also investigates relationship between traditional unidimensional (income) poverty and multidimensional poverty. It contrasts the results obtained by using a multidimensional measurement of poverty with those of the official poverty line. On the basis of findings, the prime policy implication of the study is to take into account exclusion of a high proportion of abject poor in Social Protection Programs. Additionally, targeting poverty on geographical basis, instead of the whole population, is appealing for the reason that it is relatively easy to deal with.

Keywords: Multidimensional Poverty Index (MPI); Capability Approach; Alkire and Foster Method; Dual Cutoff Approach; Poverty Profiles.