Pakistan Poverty Alleviation Research Articles

A Mixed Methods Study of the Role of Dignity and Sanctity in Poverty Alleviation in Pakistan

A Mixed Methods Study of the Role of Dignity and Sanctity in Poverty Alleviation in Pakistan

The Effect of Remittances on Economic Expansion and Poverty Reduction: Evidence from Pakistan

This study investigates the impact of remittances on economic growth and poverty reduction in Pakistan. The research aims to empirically examine the relationship between remittances, economic expansion and poverty reduction. Using data from 1980 to 2021, sourced from the World Bank, the study employs the Augmented Dickey-Fuller test to assess the stationarity of variables. The results indicate that all variables are stationary, using the Autoregressive Distributed Lag (ARDL) approach for analysis. The ARDL bound test confirms a long-term relationship between the variables. In the context of economic growth, the study finds that remittances have a positive and significant impact, with a 1% increase in remittances associated with a 0.26% rise in GDP. However, the study observes a negative impact of foreign direct investment on GDP. Regarding poverty reduction, the results suggest that remittances have a negative and insignificant effect on poverty, with a 1% increase associated with a 0.53% decrease in poverty. Granger causality tests reveal unidirectional causation between remittances and economic growth and between remittances and poverty. The findings underscore the importance of remittances in influencing economic growth and poverty reduction in Pakistan. Recommendations include policies to enhance remittances' positive impact on economic growth and poverty alleviation. The study's implications extend to policy recommendations, emphasizing the potential benefits of remittances in fostering economic growth and poverty reduction. Policymakers are encouraged to consider remittances' positive impact when formulating sustainable development strategies. Additionally, the research contributes to the existing literature by providing insights into the nuanced relationships among remittances, economic growth, and poverty alleviation in Pakistan.

Unveiling the path to sustainable poverty alleviation in Pakistan: Investigating the role of microfinance interventions in empowering women entrepreneurs

Unsustainability and the menace of poverty are the major challenges confronted by developing countries like Pakistan. This study intends to highlight the impact of microfinance interventions on women entrepreneurs in Pakistan and their potential to foster women's entrepreneurial ambition as a means of poverty alleviation. A quantitative research design has been used to collect data through a questionnaire from 400 women entrepreneurs who have benefited from the National Rural Support Program (NRSP)’s, (2019–2021) Microfinance and Enterprise Development Program in Pakistan. The study found that the concept of microfinance resources is gaining significance and its access is significantly impacting the entrepreneurial inclination and success of women entrepreneur’s vis a vis reduces poverty levels in low-income communities. The findings have significant implications for policymakers, microfinance institutions and women entrepreneurs in Pakistan, emphasizing the need for programs that target women entrepreneurs and provide them with microfinance resources and training to empower them to take charge of their businesses. Limited generalizability and self-reported data are the limitations to mention. Strategies like offering microfinance were found to be valuable tool in combating poverty and inequality from the women entrepreneurial initiatives perspective.

Defining of the energy poverty of the state through the analysis of Belt and Road influence on its alleviation in the context of sustainable development

Energy poverty is an issue, which is new to the scientific field and often omitted from the research. The contemporary approaches to it are various, still the major of them points that energy poverty exists in case the national energy sector and the economy in general lack the possibilities to provide sufficient, safe, reliable, and affordable energy to the consumers. This paper examines the energy sector of Pakistan to prove or refute the idea of energy poverty existence in the country. In addition to that the energy poverty in Pakistan, in case it exists needs to be defined, its reasons are to be examined and the possible solutions for its alleviation provided. The paper proves the mentioned idea with the help of the approach from the side of international infrastructure construction. The proposed approach includes the examination of the role of BRI in energy poverty alleviation in Pakistan. While the Initiative has a significant impact on the economy of the country, its energy sector isn’t directly affected by BRI. The major results of the study encompass the following: the energy poverty measurement through index method is developed, based on demand for energy and its supply and imports’ changes; the energy poverty in Pakistan persists and can’t be alleviated by the international institutions; the effects of economic growth aren’t automatically distributed in the economy, especially in the energy sector of the country and have limited effects on energy poverty.

The Business Performance and Poverty alleviation in Pakistan: A Practical Application through ARDL approach

This research is taken on the basis of empirical analysis for business performance and different variables for poverty alleviation in Pakistan. This is done on the basis of auto regressive distributive leg model on the basis of short run and long run analysis which determined the relationship in between some core factors for the period of 1990 to 2022. Our finding suggested that the short run analysis of business performance inflation education exhibited a negative relationship on poverty on other hand the long run relationship of business performance inflation interested exchange rate and education having some adverse association with poverty. In addition to this imports exports and the balance of trade showed no impact on significant impact on poverty but in long run it established a positive relationship with poverty. The outcomes also show that the system of education particularly the technical education is a means is used to overcome poverty. Furthermore, the improving of business opportunities attracted foreign investment which was very crucial for economic activities and reduction of unemployment for removal of poverty.

Geopolitics of Energy: Pakistan-China Energy and Economic Corridor for Poverty Alleviation in Pakistan

The growing energy partnership between China and Pakistan is one of the most promising avenues for reducing poverty in Pakistan. This China-Pakistan Energy Cooperation has a strong potential to address the energy crisis in Pakistan that is a high priority. Opportunities for energy cooperation, such as building power plants, transmission lines, and other infrastructure, have expanded due to this partnership. The collaboration in this arena has helped reduce poverty and boost economic growth in Pakistan by giving the country access to abundant and low-cost energy resources. This paper tries to explore China’s cooperation in building energy infrastructure in Pakistan and a paradigm shift towards renewable energy resources such as hydel, coal, solar, wind and nuclear will reduce its reliance on the Gulf States. The objective of this paper is to investigate China and Pakistan's energy cooperation after realizing its potential that can help reduce poverty in Pakistan. The discussion, analysis and findings indicate that energy security will reduce poverty and lead to economic prosperity in Pakistan.

Macroeconomic Policies and their Impact on Poverty Alleviation in Pakistan

The paper provides a consistent time-series of poverty estimates for the period 1963- 64 to 1992-93 for both the rural as well as the urban areas, examines the influence of macroeconomic policies on the poverty levels, analyses the impact of Structural Adjustment Programmes on the levels of poverty, and suggests a strategy for poverty alleviation in Pakistan. The paper explores in particular the influence on poverty of such factors as economic growth, agricultural growth, terms of trade for the agriculture sector, industrial production, rate of inflation, employment, wages, remittances, and the tax structure. While the paper cautions that on account of the limited number of observations the results of the study should be interpreted cautiously, the study does suggest that the growth above a threshold level of about 5 percent, increase in employment, and remittances are the most important variables explaining the change in poverty over time. The paper also comes to the conclusion that the policies pursued under the Structural Adjustment Programme have tended to increase the poverty levels mainly because of decline in growth rates, withdrawal of subsidies on agricultural inputs and consumption, decline in employment, increase in indirect taxes, and decline in public expenditure on social services. The paper also outlines a strategy for poverty eradication and argues that besides the safety nets, the employment programmes, as well as promotion of informal sector enterprises, are essential.

Population and Poverty Alleviation in Pakistan: An Aggregated and Disaggregated Analysis

Population and Poverty Alleviation in Pakistan: An Aggregated and Disaggregated Analysis

The Role of Islamic Microfinance in Poverty Alleviation: Evidence from Pakistan

This study aims to develop and propose an Islamic microfinance model that can be used for poverty alleviation in Pakistan. Other than investigating poverty, other interrelated aspects were also considered in which entrepreneurship, conventional microfinance, and Islamic finance were included. Moreover, by moving beyond and further exploring, this research presents various uses of Islamic microfinance to reduce poverty. A set of primary data was collected through interviews to carry out this research. Initial findings of the study unveil that poverty exists concerning common perceptions such as lack of necessities, unemployment, poor health, and insufficient financial resources. However, child selling, unethical ways of earning such as begging, robbery, and incompetency of the skilled person were the findings representing poverty from totally different perspectives. Moreover, the studied results also reveal that few respondents were aware of the concept and use of conventional microfinance. Still, at the same time, all the respondents represented the forbiddance of interest. Findings also represent the unawareness about Islamic microfinance's concepts, practice, and importance. This research is helpful as it presents the idea and the use of Islamic microfinance for the impoverished people of Pakistan and how it can be a beneficial alternative for reducing poverty. Moreover, it also seeks the attention from the financial institutions in the Country that how the beliefs and expectations of poor people are important in reducing their poverty. The significance of this study broadens the scope of the neglected concept of Islamic finance generally and Islamic microfinance particularly.

The Role of Internal and External Migration on Rural Poverty Alleviation In Pakistan: A Case Study of Multan District

Migration has become an important part of the current global economy. People migrate from their homes for different purposes although this study endeavors to estimate the role of internal and external migration on poverty alleviation in rural areas of the Multan district. Binary logistic regression is applied to the data of 170 rural households. Poverty has been measured by the headcount index, poverty gap, and squared poverty gap, estimates show the high incidence of poverty in rural areas of Multan district. The findings reveal that rural to urban migration, foreign remittances, educational attainment of the household head, household head age and livestock population turn out to be discouraging aspects of poverty while physical disability and household size turn out to be encouraging aspects of poverty. To eradicate poverty easiness in internal and external migration should be ensured by the government.

Socio-Economic and Demographic Factors of Poverty Alleviation in Pakistan: A Case Study of Southern Punjab

This study aims to explore the socio-economic and demographic determinants of poverty in Southern Punjab by using the cross sectional data consisting of 785 household heads. Binary logistic regression and ordinary least square method are used for estimation. The findings exhibit that the variables like family system, household size, presence of disease and status of employment of household head are positively and significantly related to poverty whereas household head age, rural-to-urban migration, years of schooling, number of earners, women status of work, remittances, the physical assets value and ownership of house significantly and negatively influence the likelihood of poverty and positively influence the per capita income of the households in Southern Punjab. The study also provides the comparison of regional and division level. It is concluded that DG Khan division is the poorest among all the divisions of the southern Punjab. In DG Khan Division, the households have less education, high dependency ratio. In rural areas of southern Punjab, there is more poverty as compare to urban areas. The rural poverty is due to many factors like high dependency rate, lower level of education, adoption of profession, lower per capita income, dissaving. It is suggested that education should be promoted, employment opportunity should be provided so that dependency rate may be reduced, rural areas should be restructured by provision of basic necessities of life.

The Effects of Monetary Policy on Poverty Alleviation in Pakistan

This research analyzes the effect of monetary policy of central bank on the poverty alleviation. Monetary policy is the policy adopted by the monetary authority of a country that controls either the interest rate payable on very short-term borrowing or the money supply, targeting inflation or the interest rate to ensure price stability and general trust in the currency. This study is taking two variables in monetary policy namely interest rate and money supply. Effects of both variables examined on poverty rate in context of Pakistan. Moreover, association and effect examined between both variables (interest rate and money supply). This study comprises on quantitative research methodology as secondary data taken from world indicator from 2001 to 2017. Regression analysis applied on collected data. According to findings, if central bank increases in supply of money in economy, it cannot reduce poverty rate in Pakistan. It is because more money supply will bring inflation, which discourages investment of all types. If high interest rate set by central bank then it cannot bring significant reduction in poverty rate of Pakistan as it will reduces the investment and overall employment. If central bank set increased interest rate then it deceases the money supply in the economy of Pakistan, as funds will be, divert to banks for earning interest on deposits. Recommendations and conclusion are given at the end of this paper.

The Impact of Microfinance on Poverty Alleviation: The Case of Pakistan

This paper examines the effect of microfinance on poverty alleviation in Pakistan using district-level panel data. We conduct fixed effect panel regressions to show a statistically significant positive impact of microfinance on household income, ownership of household assets, education, and expenditure. These results suggest that the development of microfinance is an efficient tool for both welfare improvement and poverty alleviation in Pakistan.

Strategy Model for Increasing the Potential of Zakat through the Crowdfunding-Zakat System to overcome Poverty in Indonesia

Indonesia, through Presidential Regulation No. 18 of 2007, Indonesia's annual economic development goals are directed to encourage economic growth in order to expand employment and reduce poverty. With implications for income equity, zakat has a strategic potential that is feasible to be developed into one of the instruments of income distribution in Indonesia. Based on data collection and distribution of funds of the Zakat Management Organization below, in 2015, the total fund collection experienced a growth of 10.62% compared to 2014. This study will discuss discussing the related Strategy Model for Increasing the Potential of Zakat through Crowdfunding-Zakat System for poverty alleviation in Indonesia. Abdullah (2015) in his research developed a new methodology to measure poverty alleviation in Pakistan, focusing on consumption / expenditure of poor households for basic needs, government expenditure in terms of zakat and the number of recipients of zakat as the three main determinants. In Syafiq (2014) the realization of the prospect of zakat in the modern economy must also be supported by the management of zakat management organizations in a modern way, meaning that in the fundraising strategy, and the distribution must follow modern management and strategy as a company in achieving its target. Thaker and Pitchay (2018) through their research revealed that crowdfunding model is used to raise funds to develop Waqf land in Malaysia where in their research they propose a sustainable model that can overcome liquidity problems faced by Waqf institutions in developing Waqf land. Using qualitative research methods with a literature study approach. With the crowdfinding-zakat system, it provides convenience in the collection of zakat funds from the wider community in line with several regions in Indonesia that show the potential and positive impact on income distribution.

Do Non-farm Enterprises Offer Pathways for Upward Mobility in Rural Pakistan? Evidence from Panel Dataset

This study has analysed the dynamics of rural non-farm enterprises and their role in employment provision, equity enhancement and poverty alleviation in Pakistan. Multiple data sources have been used including cross-sectional and panel datasets. The results show that majority of the rural non-farm enterprises in Pakistan are micro-enterprises with only a limited share in manufacturing. They are informal and have poor forward and backward linkages and high closure rate. Despite the poor asset base, they are providing jobs to more than half of the rural population, contributing to reduction in poverty and equity enhancement among the rural masses. Rich households own enterprises and poor households gain employment from non-farm enterprises. Non-farm economy has a significant impact in reducing multiple deprivations and also has a significant positive impact in pulling households out of poverty with the passage of time. Pakistan, being a country where most of the population is still residing in rural areas and where rural land is not equitably distributed; such non-farm activities are highly important not only to tackle the ongoing food security challenges but also for resource diversification of households. JEL Classification: I32, J21, J43, O14, Q10, R11 Keywords: Rural Development, Non-farm Sector, Employment, Poverty, Multidimensional Poverty

GLOBALIZATION, GROWTH & POVERTY ALLEVIATION IN PAKISTAN

Globalization hampers the growth level of the countries, then this raising growth rate helps to improve the living standard and reduce inequalities among the masses, that finally downgrade the poverty level of the nations, is the way that global institutions favor it. The debate on rightness of the measures taken for globalization to the socioeconomic development of emerging economies is prolonged and still controversial too. This paper attempts to address the impacts of measures taken for globalization (trade liberalization)specially with reference to its benefits and harms associated to growth and poverty alleviation in Pakistan. In order to examine the effects of trade liberalization on output growth and poverty, Toda-Yamamoto Granger causality is used, by taking data of last 30 years i.e. 1985 to 2015. The empirical findings and review of literature done in the study is consistent with the judgment of prior studies as concluding the hybrid type effects of globalization to the socio-economic conditions i.e. growth and poverty, of Pakistan.

THE DETERMINANTS OF CUSTOMER PREFERENCES TOWARDS MICROFINANCE SERVICES: A CONSUMER PERSPECTIVE FROM PAKISTAN

Purpose-This study helps to understand the successful path of micro-financing, which can plays a vital role in poverty alleviation in Pakistan. Methodology/Sampling-To collect data authors of this paper visited different microfinance institutions (MFIs) like Tameer Micro Financing Bank and Khushali Bank Limited in Karachi. A structured questionnaire was designed for data collection of consumers of microfinance. Statistical data of 100 samples showed 46% of respondents acquired loan for agricultural purposes while 54% loans were business based. Findings-It is observed that male respondents are higher than female. Regression model showed 38% variation in consumer preference regarding the microfinance services. Statistic in the ANOVA shows the significance of model. The coefficient of MFI’s Approach with negative sign indicates an inverse relationship with that of consumer preferences. It means that MFI agents do not give proper value to the targeted consumers. Finally, the amount of loan and interest charged by the MFI’s is also having a negative impact on the consumers of micro- finance. Practical Implications-This study deliver statistical evidence of utilization of funds as well as the consistency of gathered data. Work showed that responded are need to be acquired more knowledge about the microfinance services in Pakistan.

GAUGING AUDIENCES’ MESSAGE RECALL THROUGH BRAND ELEMENT PLACEMENT IN TELEVISED COMMERCIALS

Purpose: This study helps to understand the successful path of micro-financing, which can plays a vital role in poverty alleviation in Pakistan. Methodolgy/Sampling: To collect data authors of this paper visited different microfinance institutions (MFIs) like Tameer Micro Financing Bank and Khushali Bank Limited in Karachi. A structured questionnaire was designed for data collection of consumers of microfinance. Statistical data of 100 samples showed 46% of respondents acquired loan for agricultural purposes while 54% loans were business based. Findings: It is observed that male respondents are higher than female. Regression model showed 38% variation in consumer preference regarding the microfinance services. Statistic in the ANOVA shows the significance of model. The coefficient of MFI’s Approach with negative sign indicates an inverse relationship with that of consumer preferences. It means that MFI agents do not give proper value to the targeted consumers. Finally the amount of loan and interest charged by the MFI’s is also having a negative impact on the consumers of micro- finance. Practical Implications: This study deliver statistical evidence of utilization of funds as well as the consistency of gathered data. Work showed that responded are need to be aquired more knowlwdge about the microfinance services in Pakistan..

Role of NGOs in Education from Pakistani Context

This paper presents a review of NGOs working for rural poverty alleviation in Pakistan and current situation of Pakistan particularly in rural context. The research has been conducted using qualitative method. The findings of research show that condition of poor has not been much improved across the country particularly in rural areas of Pakistan. The study is of good value as there are number of controversies among different stakeholders including government regarding NGOs while NGOs claim total success in their work areas particularly rural areas. The study will suggest further research on testing such claims made by NGOs.

The effectiveness of zakat in alleviating poverty and inequalities

Purpose – The purpose of this paper is to examine the role of zakat (the Islamic tax) in alleviating poverty and inequality in Pakistan using a newly developed index, namely, the Basic Needs Deficiency Index (BNDI). Design/methodology/approach – The study formulates an index (BNDI) to measure the deficiency and effectiveness of zakat as one of the different items of government expenditure/spending to alleviate poverty. In this paper, Pakistan is chosen as a case study for two reasons: the availability and accessibility of data required for computing BNDI; and, in the past, no index such as this had been used to measure poverty in Pakistan. Findings – The results obtained from the computation of the BNDI have been able to explain the effectiveness of zakat in alleviating poverty and inequality in Pakistan. Practical implications – The findings of the study can be used by policymakers to measure and improve the effectiveness of zakat in reducing poverty and inequality. Social implications – As the ultimate beneficiaries of zakat are the poor people, the outcome of this study may help improve their quality of life. Originality/value – The paper develops a new methodology to measure poverty alleviation in Pakistan, focusing on the poor households’ consumption/expenditure on basic needs, government spending in terms of zakat and the number of zakat recipients as the three main determinants. The index developed in the present study can be applied to measure the performance of all Muslim countries whose provision of zakat is embedded in the national agenda to alleviate poverty.