Statistics reveal that every three out of ten Pakistanis fall in the category of poor.
According to details, the government of Pakistan has recognized that every three out of ten Pakistanis are officially poor after readjusting Pakistan’s poverty line in order to bring the headcount corresponding to the existing socioeconomic conditions.
While further putting the data in absolute terms, officially 59 million are recognized as poor, which shows a drastic increase from previous data of 20 million poor in the country. In this regard, the Ministers of planning and finance uncovered a recent methodology to determine the percentage of Pakistani people living below the poverty line.
According to the statement of the ministers the new methodology involves a formula which is based on the cost of basic needs of people. This new formula is aimed at making the definition of poor more rational. The formula used previously was based on food energy intake.
Under the new methodology, the official poverty ratio was 29.5% in 2013-14; interestingly, this ratio plunged down to 9.3%, according to the old formula. Ahsan Iqbal- Minister of Planning and Development, revealed this as he was unveiling the new methodology. Under the new formula, the poverty line now equals to 3,030 Rupees per adult per month, which is higher stat from 2,350 Rupees. According to Ahsan Iqbal, the new definition, the poverty ratio was 64.3% in 2001 against the old estimate of 34.6%.
According to this new methodology, the poverty ratio dropped considerably from 64.3% in 2001 to 29.5% in 2013-14. The poverty in rural areas was high compared to urban areas. Data reveals that over one-third of the rural population is categorized as poor as compared to less than one-fifth in urban areas.