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Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey

Author

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  • G. M. Arif

    (Pakistan Institute of Development Economics, Islamabad.)

  • Faiz Bilquees

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

This paper analyses the incidence of chronic and transitory poverty in Pakistan in both urban and rural settings. The findings of this study are that rural poverty is more severe and also chronic as compared to transitory poverty in urban centres. The main factor behind the phenomenon is the homogeneity of the rural set-up which affects the employment and wage levels adversely. On the other hand, in the urban areas, heterogeneous population with diverse occupations provides better employment and wage opportunities. Furthermore, landlessness, lack of ownership of dwellings, and dependency on sharecropping are the three main factors accentuating rural poverty. The paper also analyses the zakat element of the safety net strategy. Contrary to the prevailing perception that zakat does not reach the actually poor, it turns out that in fact zakat has become an ?identification mark? for the absolute poor. The findings of this paper have very strong implications for the poverty reduction strategy of the Government of Pakistan.

Suggested Citation

  • G. M. Arif & Faiz Bilquees, 2006. "Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey," MIMAP Technical Paper Series 2006:19, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:mimaps:2006:19
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    References listed on IDEAS

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    1. Dorosh, Paul A. & Malik, Sohail J., 2006. "Transitions Out of Poverty: Drivers of Real Income Growth for the Poor in Rural Pakistan," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25387, International Association of Agricultural Economists.
    2. Aniceto C. Orbeta, 2006. "Poverty, Vulnerability and Family Size: Evidence from the Philippines," Chapters, in: John Weiss & Haider A. Khan (ed.), Poverty Strategies in Asia, chapter 6, Edward Elgar Publishing.
    3. Irfan, Mohammad, 2003. "Poverty and social safety nets: a case study of Pakistan," MPRA Paper 38082, University Library of Munich, Germany.
    4. Faiz Mohammad, 1991. "Prospects of Poverty Eradication Through the Existing Zakat System in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(4), pages 1119-1129.
    5. Sarfraz K. Qureshi & G. M. Arif, 2001. "Profile of Poverty in Pakistan, 1998-99," MIMAP Technical Paper Series 2001:05, Pakistan Institute of Development Economics.
    6. repec:ilo:ilowps:367533 is not listed on IDEAS
    7. G. M. Arif & Faiz Bilquees, 2006. "An Analysis of Sample Attrition in the PSES Panel Data," MIMAP Technical Paper Series 2006:20, Pakistan Institute of Development Economics.
    8. World Bank, 2002. "Poverty Assessment : Poverty in Pakistan - Vulnerabilities, Social Caps, and Rural Dynamics," World Bank Publications - Reports 15335, The World Bank Group.
    9. G. M. Arif & Syed Mubashir Ali & Zafar Mueen Nasir & Nabeela Arshad, 2001. "An Introduction to the 1998-99 Pakistan Socioeconomic Survey (PSES)," MIMAP Technical Paper Series 2001:04, Pakistan Institute of Development Economics.
    10. Arif, G.M., 2004. "Bonded labour in agriculture : a rapid assessment in Punjab and north west frontier province, Pakistan," ILO Working Papers 993675333402676, International Labour Organization.
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    Cited by:

    1. Muhammad Masood Azeem & Amin W. Mugera & Steven Schilizzi & Kadambot H. M. Siddique, 2017. "An Assessment of Vulnerability to Poverty in Punjab, Pakistan: Subjective Choices of Poverty Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(1), pages 117-152, October.
    2. Adepoju, A., 2018. "determinants of multidimensional poverty transitions among rural households in Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276027, International Association of Agricultural Economists.
    3. Atta Ullah Khan & Abdul Saboor & Abid Hussain & Shahid Karim & Sajid Hussain, 2015. "Spatial and Temporal Investigation of Multidimensional Poverty in Rural Pakistan," Poverty & Public Policy, John Wiley & Sons, vol. 7(2), pages 158-175, June.
    4. Rashid Amjad & G. M. Arif & Usman Mustafa, 2008. "Does the Labor Market Structure Explain Differences in Poverty in Rural Punjab?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(Special E), pages 139-162, September.
    5. Awan, Masood Sarwar & Iqbal, Nasir & Muhammad, Waqas, 2011. "The impact of human capital on urban poverty: The case of Sargodha city," MPRA Paper 31829, University Library of Munich, Germany.
    6. Atta Khan & Abdul Saboor & Ikram Ali & Wasim Malik & Khalid Mahmood, 2016. "Urbanization of multidimensional poverty: empirical evidences from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 439-469, January.
    7. Ghulam Mustafa & Nasir Iqbal & Faiz Ur Rehman, 2022. "Evaluating the Short Run and Long Run Impacts of Unconditional Cash Transfers on Food-Seeking Behaviour: New Insights from BISP, Pakistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(1), pages 85-102.
    8. Shujaat Farooq & Usman Ahmad, 2020. "Economic Growth and Rural Poverty in Pakistan: A Panel Dataset Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1128-1150, September.
    9. repec:pid:wpaper:2012:5 is not listed on IDEAS
    10. Tingting Li & Hualou Long & Shuangshuang Tu & Yanfei Wang, 2015. "Analysis of Income Inequality Based on Income Mobility for Poverty Alleviation in Rural China," Sustainability, MDPI, vol. 7(12), pages 1-17, December.
    11. Khosla, Sunil & Jena, Pradyot Ranjan & Rahut, Dil Bahadur, 2023. "Can rural livelihood programs enhance capabilities and reduce vulnerability to poverty? Evidence from a tribal region of eastern India," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 85-98.
    12. Kurosaki, Takashi, 2011. "Vulnerability of Household Consumption to Village-level Aggregate Shocks in a Developing Country," PRIMCED Discussion Paper Series 8, Institute of Economic Research, Hitotsubashi University.
    13. Gulnaz Hameed & Abdul Saboor & Atta Ullah Khan & Ikram Ali & Mohsin Khan Wazir, 2017. "Impact of Community Development in Poverty Reduction: Reflections of Azad Jammu and Kashmir Community Development Program," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1073-1086, February.
    14. G. M. Arif & Faiz Bilquees, 2006. "An Analysis of Sample Attrition in the PSES Panel Data," MIMAP Technical Paper Series 2006:20, Pakistan Institute of Development Economics.
    15. G. M. Arif & Shujaat Farooq, 2014. "Rural Poverty Dynamics in Pakistan: Evidence from Three Waves of the Panel Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 71-98.
    16. Saboor, Abdul & Khan, Atta Ullah & Hussain, Abid & Ali, Ikram & Mahmood, Khalid, 2015. "Multidimensional deprivations in Pakistan: Regional variations and temporal shifts," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 57-67.
    17. G. M. Arif & Nasir Iqbal & Shujaat Farooq, 2011. "The Persistence and Transition of Rural Poverty in Pakistan: 1998-2004," PIDE-Working Papers 2011:74, Pakistan Institute of Development Economics.
    18. Rashid Amjad & Musleh Ud Din & Idrees Khawaja & Nasir Iqbal & Ahmad Waqar Qasim, 2012. "The 7th Nfc Award: An Evaluation," PIDE Monograph Series 2012:5, Pakistan Institute of Development Economics.
    19. Joshi, Niraj Prakash & Maharjan, Keshav Lall & Piya, Luni, 2012. "Poverty dynamics in Far-western Rural Hills of Nepal: Evidences from panel data," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125785, International Association of Agricultural Economists.
    20. Atta Khan & Abdul Saboor & Ikram Ali & Wasim Malik & Khalid Mahmood, 2016. "Urbanization of multidimensional poverty: empirical evidences from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 439-469, January.

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    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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