CHALLENGES AND THE FUTURE OF POVERTY AND INEQUALITY IN PAKISTAN

Abstract

Poverty and inequality particularly in Pakistan are among the most controversial ones. Inequality and poverty force poor people to pass by several difficulties. The percentage of persons who live below the national poverty line, which is 1745 Rupees a month, and the number of people who earn less than 1.25 US dollars per day are used to calculate poverty. The Gini Coefficient is used to quantify inequality. Thirty-one observations from 1984 to 2024 make up the time series secondary data used in this quantitative study. The results of this study show that the national poverty line is strongly and negatively impacted by inflation, government spending, remittances, and literacy rates in the first regression model.

. This is not dependent on the impact of the level of development and foreign direct investment on the national poverty. Equation two illustrates the positive correlation between inequality and growth, with inflation and growth showing positive signs and remittances showing negative signs. The relationship between inequality and government spending, foreign direct investment, and literacy is also not very strong.In this research, the findings of the study will be applicable in offsetting policy implication. Poverty and inequality can be alleviated by ensuring that education is offered which will result into more jobs and income distribution.