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Pakistan is facing poverty due to many factors involved in making such circumstances in the in Pakistan. IBRD (International Bank for Reconstruction and Development) issues annual report of a country which shows the indicators which effects positively or negatively the Country. These indicators are named as “World Bank Indicators” According to report of 2007 of Pakistan issued by IBRD there were 765 indicators (factors) and these increases every year. 765 Indicators means that 765 factors are there in Economy of Pakistan which may take it to successive way or may be harmful for Pakistan.

Major Indicators involved in Economy of Pakistan

· Poverty



· Unemployment

· Savings

· Foreign Investment

· Foreign direct investment

· Investment & many more

Don’t forget that Development or Economy of any country may not be measured by any of the indicators mentioned by IBRD or the major one, to understand the Economic Condition of any country you must need to have a very close view to all the indicators involved in it.

I being a student of Management sciences read Pakistan economy as a subject and respected teacher guided us a lot to understand Pakistan Economy, I’m here discussing “Poverty as major indicator involved in Economy of Pakistan”

Criterion of Poor

The criterion of poor is that if a person is not earning US $367.00 per is year considered poor but this was repeated later on the criterion is changed and now it’s US $ 2.00 per day.


• Dr Ishrat Hussain (X-Governor of State Bank of Pakistan was MSc. Chemistry and Awarded Scholarship by Pakistan to do PhD., but he returned as PhD of Economics)
He writes in his Book “Pakistan, The Economy of Elitists” that “The Federals and the Landlords of Pakistan are the Major Hurdle in the way of development of Pakistan”

• Micheal P. Todaro “M.P. Todaro” writes in his Book “Development Economies in 3rld world” writes that “There are long and long Boulevards in the developing countries where huge Bungalows are there. In these Bungalows 2-3 Family members are living where as a small cottage is also adjusted to that Bungalow where poverty is dancing and a younger girl is having relatively better living standards among them and no one to ask her the sources of resources.

• Dr Haq again writes in his another book “ Poverty Curtain” that There are seven sins committed by policy makers and Economist, due to those reasons Pakistan faces Poverty

1. Divorce between Planning & Implementation
2. Number Game
3. Excessive Control (Army, MNCs, Other Countries, Bureaucrats)
4. Development Fashion
 40-50s Industrialization
 50s Export Promotion
 60s Import substitution
 Mid of 60s Agriculture development
 70s Socialism
 80s Islamization
 Late 80s Privatization
 90s Unbalanced Grwoth
 2000s to onward Liberalism and War against territories
5. Investment Illusion
6. Neglect of HR
7. Growth without Justice

Major Causes of Poverty in Pakistan

• Lack of Effective Demand
• Population Pressure
• Lack of Investment
• Absense of Solid Industrial Estates
• Sudden fluctuation in Demand and Supply
• Shortage of Capital
• Market imperfection
• Low literary rate
• Inflationary pressure
• Low Foreign Investment
• Dead/Zero Sum Investments
• Structual distortation
• Bad Educational System
• Govt. doesn’t work to create more Employment opportunities

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