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Multi-dimensional income inequality in Pakistan

Author

Listed:
  • Abdul Hamid
  • Naeem Akram

Abstract

Inequality along with poverty has been a serious challenge for most of the developing countries. There have been several historical, political, social and economic dimensions of the inequalities. The present study provides a detailed analysis of various income dimensions of inequality at national and provincial level in Pakistan. This paper also provides a detailed analysis of the causes and consequences of these inequalities. The analysis shows that the gaps between haves and have-nots is widening. The distributional inequality has not been given much significance in Pakistan and the distributional policy measures like direct taxes have been weak. As a result, the direct tax to GDP ratio could not be increased over 10% in the country. The study finds that income inequalities have increased during 2001 to 2008. As in 2001-02, GINI coefficient was calculated as 0.27 and in 2007-08, it reached to 0.29. It has also been observed that inequality is highest in Sindh followed by Punjab, Khyber Paktunkawa (KPK) and Baluchistan provinces.

Suggested Citation

  • Abdul Hamid & Naeem Akram, 2014. "Multi-dimensional income inequality in Pakistan," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 8(1), pages 21-35.
    • Handle: RePEc:ids:ijecbr:v:8:y:2014:i:1:p:21-35
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    Cited by:

    1. Sana Khushi & Sajid Rashid Ahmad & Ather Ashraf & Muhammad Imran, 2020. "Spatially analyzing food consumption inequalities using GIS with disaggregated data from Punjab, Pakistan," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1283-1298, December.

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