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Impact Of Macroeconomic Policies On Poverty Alleviation In Pakistan

Author

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  • Israr Fahad

    (Institute of Management Sciences, Peshawar Pakistan, School of Liberal Arts)

  • Ali Rehmat

    (Institute of Management Sciences, Peshawar Pakistan)

Abstract

This paper provides strategy to explain the macroeconomic determinants for eradicating poverty in Pakistan. An empirical analysis of macroeconomic indicators are based on the data for the year 1994 to 2005. Ordinary least square estimation was used to estimate the parameters of multiple variable regression model. Gini coefficient is used to measure the inequality in income distribution. The results suggest that per capita income, and remittances, are highly significant, developmental expenditure, and unemployment rate have significant affect to alleviate poverty. Elimination of poverty is impractical without the increase in per capita income. The paper comes to the conclusion that government should promote investment in social and developmental projects, creating job opportunities, increasing individual per capita income, and capturing the improvement in the individual standard of living.

Suggested Citation

  • Israr Fahad & Ali Rehmat, 2013. "Impact Of Macroeconomic Policies On Poverty Alleviation In Pakistan," Romanian Economic Business Review, Romanian-American University, vol. 8(4), pages 48-60, december.
    • Handle: RePEc:rau:journl:v:8:y:2013:i:4:p:48-60
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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/WI13/REBE-WI13-A4.pdf
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    References listed on IDEAS

    as
    1. A. R. Kemal, 2003. "Institutional Change, Growth, and Poverty Levels in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 299-311.
    2. Talat Anwar & Sarfraz K. Qureshi & Hammad Ali, 2004. "Landlessness and Rural Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 855-874.
    3. Akmal Hussain, 2008. "Institutional Imperatives of Poverty Reduction," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 605-630.
    4. Haroon Jamal, 2006. "Does Inequality Matter for Poverty Reduction? Evidence from Pakistan’s Poverty Trends," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 439-459.
    5. Robert E. Evenson, 2005. "The Green Revolution and the Gene Revolution in Pakistan: Policy Implications," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 359-386.
    6. Nabeel A. Goheer, 1999. "Poverty in Pakistan: Increasing Incidence, Chronic Gender Preponderance, and the Plausibility of Grameen-type Intermediation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 873-894.
    7. Rashid Amjad & A.R. Kemal, 1997. "Macroeconomic Policies and their Impact on Poverty Alleviation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(1), pages 39-68.
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    Cited by:

    1. Akhtar Gul & Fatima Zahra & Anum Iqbal & Tanbila Ghafoor & Musaddiq Hussain, 2020. "Linkage Between Poverty, Inequality, and Income Distribution: A Case on Bannu District, Pakistan," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(4), pages 330-339, December.

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