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Poverty
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every quintile. The reduction in poverty is evident
2000
2001
2002
2003
2004
2005
2006
2007
2008
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2011
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2013
in different forms of datasets like dollar a day
Source: da ta .worldba nk.org (WDI Ta bles)
criterion poverty estimation using independent
database of PIDE from its own household survey:
Planning Commission while taking these 1. Poverty Headcount Review for 2013-14
arguments of the expert group and best using new Methodology
international practices into considerations adopted
Using CBN a new poverty line is estimated using
a new poverty line based on Cost of Basic Needs
patterns of consumption of reference group and it
(CBN) approach which focuses on the
consumption patterns of households in the comes to Rs. 3030 per adult equivalent per month
reference group. It first obtains a food poverty line using the latest available HIES 2013-14 data.
by taking the average spending on food of According to this methodology 29.5 percent of the
households in the reference group. This food population is estimated to live below poverty line.
expenditure can be translated into a certain level Using the population estimate of 186.2 million for
of caloric intake, which may or may not be 2013-14 implies that around 55 million people are
different from the minimum caloric threshold living below the poverty line in Pakistan. Using
chosen bya country. If the two are different, then the old FEI methodology only 9.3 percent people
calories and expenditure are scaled to the chosen are found below poverty line in 2013-14 which
nutritional standard to arrive at the final Food means 17 million people were living below the
Poverty Line (FPL). old poverty line.
The CBN then takes into account non-food Back-casting this new poverty line to 2001-02,
expenditures (on things like clothing, shelter and using the CPI, shows that the headcount rate using
education) that are necessary for households. To this new higher line would have been 64.3 percent
do this, it focuses on households who are able to in 2001-02more than double the rate while
fully meet the FPL at their current level of food using the old poverty line. However, the trends
expenditures. The FPL is then scaled up to reflect over time remained the same using both poverty
the total expenditure of these households to obtain lines. It should be noted that these two poverty
the CBN poverty line. Both the CBN and the FEI
lines represent two very different levels of
methods can be used to construct absolute poverty
deprivation. The new line sets a higher bar a
line, which can be regularly updated for inflation
using the CPI, allowing governments to track more inclusive view of who will be considered
poverty over time. The choice of CBN has disadvantaged in Pakistan. Both lines can be
advantages such as; tracked into the past and into the future to
establish consistency and robustness of trend.
It captures non-food needs better However, they represent two different standards
It is commonly used in most of the developing of wellbeing while the new poverty line sets a
countries higher and inclusive standard. This method has an
It is more transparent edge over FEI for designing pro-poor policies.
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Poverty
Poverty estimates are highly sensitive to a variety indicators and their respective weightage were
of factors, such as the choice of poverty line determined through a consultative and inclusive
employed, methodology, the specification of the process with government representatives,
threshold level of poverty in terms of caloric development practitioners and academicians at the
requirement, expenditure or income, the federal, provincial and regional level.
determination of the scale of the household in
terms of number of individuals or adult Although each dimension of MPI carries equal
equivalents, spatial and regional differences in weight of 1/3rd, the weightage for indicators inside
prices or consumption patterns. Each each dimension differs. Within education years of
methodology or choice has its own advantages as schooling is weighted at 1/6th (16.66 percent),
well as limitations. child school attendance at 1/8th (12.5 percent), and
educational quality at 1/24th (4.17 percent). The
Planning Commission also signed an MOU with health indicators also hold different weights with
Oxford Poverty &Human Development Initiative access to health clinic weighted at 1/6th (16.67
(OPHI) and UNDP for computation of percent), and immunization, ante-natal care, and
Multidimensional Poverty Indices (MPI) for assisted delivery each having weight of 1/18th
districts of Pakistan using PSLM data. While (5.56 percent). Within the dimension of living
national poverty line and headcount continue to be standard, the indicators of water, sanitation,
estimated using outcome based consumption data, electricity, cooking fuel, assets, and land and
the MPI will be used as a deprivation index up to livestock are each weighted at 1/21 (4.76 percent)
district level. This will be used for designing of while walls and overcrowding are weighted at
development policy interventions at district level. 1/42 (2.38 percent) each.
MPI will also be used for tracking SDGs objective
of inclusive growth. Using PSLM data, the headcount of
multidimensional poverty in 2014/15 was 38.8
Multidimensional Poverty in Pakistan percent while the intensity of deprivation is 51
percent. Since 2004/05, multidimensional poverty
The concept of Multidimensional Poverty (MP)
has continuously reduced in Pakistan. The
recognizes poverty as being a multi-facet
headcount reduced from 55.2 percent to 38.8
phenomenon that constitutes multiple aspects of
percent between 2004-05 and 2014-15. However,
deprivation. The MPI estimates for Pakistan were
the intensity of deprivation reduced only slightly
developed by a team of experts from Planning
over the same time period (from 52.9 percent to
Commission, OPHI and UNDP. The MPI
51 percent). This means that majority of the multi-
constitutes three dimensions; health, education
dimensionally poor people continue to experience
and standard of living. Three dimensions are
deprivation in the same number of weighted
reflected through 15 indicators. Of which 3
indicators. Similar trends also followed across all
indicators reflect deprivation in education, 4 in
provinces. Table-2 gives province-wise MPI
health and 8 pertaining to standard of living.
headcount across the 6 waves of PSLM survey.
Besides the availability of data, the selection of
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Pakistan Economic Survey 2015-16
As the table shows, there are stark regional provinces in reducing poverty over the period
disparities in Pakistan. The poverty in rural areas under analysis. Figure 2 demonstrates the relative
is higher than urban areas. Similarly at province change in MPI at national and province level.
level, Punjab has the lowest multidimensional Punjab accounts for the highest relative reduction
poverty while Balochistan has the highest in MPI (39.8 percent) while Balochistan showed
incidence. the slowest progress in reducing multidimensional
It is also important to study the progress made by poverty with a relative change of only 18 percent.
Deprivation in education is the largest contributor wise profiles of deprivations are worked out using
to MPI in Pakistan. It is followed by deprivation PSLM data and will give insight into required
in standard of living and health. In terms of interventions from the government in different
indicators, years of schooling, followed by access policy areas.
to health facilities and child school attendance are
Pakistans national MPI indicators, deprivations
the main drivers of MP. Under this study district-
cut offs and weights.
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Poverty
Child attendance Deprived if any school-aged child is not attending school (ages
1/8 = 12.5%
between 6-11)
Educational Deprived if any child not going to school because of quality issues
quality (not enough teachers, far away, too costly, no male/female, 1/24 = 4.17%
substandard school), or is attending but dissatisfied with service
Access to clinic / Deprived if not using health facility at all, or only once in awhile,
BHU because of access constrains (too far, too costly, does not suit, lack 1/6 = 16.67%
of tools / staff, not enough facility)
Immunization Deprived if any child under 5 is not fully immunized according to
vaccinations calendar (households with no children under 5 are 1/18 = 5.56%
considered non-deprived).
Health
Ante-natal care Deprived if any woman has given birth in the household in the last
3 years did not received ante-natal check-up (household with no 1/18 = 5.56%
woman that has given birth are considered non-deprived).
Assisted delivery Deprived if any woman that has given birth in the household in the
last 3 years with untrained personnel (family member, fired, tba,
1/18 = 5.56%
etc.) or in inappropriate facility (home, other) household with no
woman that has given birth are considered non-deprived
Water Deprived if household has no access to improved source of water
according to MDGs standards considering distance (less than 30
1/21 = 4.76%
minutes for return trip): tap water, hand pump, motor pump,
protected well, mineral water
Sanitation Deprived if household has no access to adequate sanitation
according to MDGs standards: flush system (sewerage, septic 1/21 = 4.76%
tank, drain), privy seat.
Wall Deprived if household has no unimproved walls (mud,
1/42 = 2.38%
uncooked/mud brick, wood/bamboo, other).
Standard of Living
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