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INCOME INEQUALITY AND POVERTY IN PAKISTAN

S. M. YOUNAS JAFRI and AZIZULLAH KHATTAK
Pakistan Economic and Social Review
Vol. 33, No. 1/2 (Summer/Winter 1995), pp. 37-58
Stable URL: http://www.jstor.org/stable/25825122
Page Count: 22
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
INCOME INEQUALITY AND POVERTY IN PAKISTAN
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Abstract

In Pakistan, income inequality and poverty are most obvious, therefore, their measurement and analysis deserve claim on our attention. For the analysis of income inequality, Gini coefficients and household income shares are estimated, whereas for poverty, Basic Needs Approach is used to estimate poverty line. Head-count and income gap ratios and FGT index are also calculated to study the incidence of poverty. To look at direct and indirect influences of various factors on income distribution and poverty, distribution of assets and employment trends are also analyzed. The study shows that while income inequality has improved slightly during the period 1979/88, it has increased substantially in 1990/91. The incidence of poverty indicators for the year 1990/91 compared to 1987/88 show that poverty has worsened over this period, both in relation to percentage of poor under poverty line as well as severity of incidence. To reduce income inequality and poverty, besides broad based assets distribution, the need is to effect changes in factor and product prices, increase expenditure on social services, promote employment opportunities and encourage labour augmenting technical change.

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