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The truth about poverty in Pakistan
January 21, 2011
Pakistan, a nation of resilient people, is currently suffering through misgovernance, political malfeasance, and lack of direction. The government’s fiscal position has weakened and the monetization of the deficit has further increased inflationary pressures. The constant increase in the prices of basic commodities has burdened the common man even more than before. Prices of vegetables and other food items have reached an unprecedented high, making it impossible for the common people to prepare their monthly budget.
The daily lives of millions of Pakistanis are consumed by another problem. They have to cope with rising poverty. With each passing day, more and more people are being pushed below the poverty line. The number of Pakistanis now living below the poverty line has crossed the 62 million mark. Poverty remains widespread, with almost one in three Pakistanis living on less than $1 a day. Poverty data anomalies continue to linger. One can only conclude that it is perhaps to escape accountability to the donors who have been granting loan upon loan to alleviate the scourge of poverty from the country.
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Pakistan, a nation of resilient people, is currently suffering through misgovernance, political malfeasance, and lack of direction. The government’s fiscal position has weakened and the monetization of the deficit has further increased inflationary pressures. The constant increase in the prices of basic commodities has burdened the common man even more than before. Prices of vegetables and other food items have reached an unprecedented high, making it impossible for the common people to prepare their monthly budget.
The daily lives of millions of Pakistanis are consumed by another problem. They have to cope with rising poverty. With each passing day, more and more people are being pushed below the poverty line. The number of Pakistanis now living below the poverty line has crossed the 62 million mark. Poverty remains widespread, with almost one in three Pakistanis living on less than $1 a day. Poverty data anomalies continue to linger. One can only conclude that it is perhaps to escape accountability to the donors who have been granting loan upon loan to alleviate the scourge of poverty from the country.
Most of these people are low-wage earners or unemployed. The poverty experienced by these people is the direct result of bad governance that does not provide social assistance and keeps the minimum wage dangerously low. Whatever the numbers, the fact is that price of virtually everything is skyrocketing in the country, from eatables to luxury goods and from electricity to POL products.
Official figures of monthly Consumer Price Index (CPI) inflation released by Federal Bureau of Statistics (FBS) on January 11, 2011, showed increase in inflation in all the major price measuring gauges. The year-on-year CPI inflation recorded at 15.68 percent in December 2010 was over 15 percent for fourth consecutive months after September 2010 and highest for the last twelve months. Weekly Sensitive Price Indicator (SPI) for the week ended on January 13, 2011 is 285.18.
Inflation rate measured through Wholesale Price Index (WPI) shot up to 24.40 percent and weekly inflation measured by the Sensitive Price Indicator (SPI) soared to 21.65 percent. Food inflation rose by 20.36 percent in December 2010 and 43.52 per cent increase in perishable food items shows a strong trend of increase in food prices.
According to the FBS data, the food inflation rose by 20.36 percent in December 2010 with cost of perishable food items going up by 43.52 per cent and non-perishable by 17.12 per cent. Analysis of the data showed an increase of 11.91 per cent in the cost of apparel, textile and footwear, 6.67 per cent in house rent, 22.72 per cent in fuel and lighting and 10.03 per cent in household furniture and equipment.
The main commodities which showed decrease in their prices include potatoes, onions, vegetables, sugar, gur, pulse mash, chicken (farm), pulse (moong) and fresh fruits. The main commodities, which showed an increase in their prices are tomatoes, eggs, cooking oil, vegetable ghee, dry fruit, readymade food, mustard oil, meat, spices, fish, sweetmeat and nimco, wheat, bakery and confectionery, cereals and jam, tomato, pickles and vinegar.
For the common man, who has no access to shelter, food, education and health facilities, employment opportunities, political/decision making participation, social mobilization, services, infrastructure and information (which are also the parameters used to measure poverty apart from income), poverty is very much a grim reality manifested in his everyday life. The common man is least interested in knowing either the WPI/CPI or SPI or the calculations thereof. What he wants is reasonable price and not be made to pay a higher price for the same item next time he goes to market.
Poverty has many dimensions in Pakistan. People have not only low incomes but they also are suffering from lack of access over basic needs. For these people poverty cannot be described, it can only be felt. One knows more about poverty when one is hungry and cannot purchase food; when one’s children want new clothes but they can’t purchase it because of low income; when one wants to one’s children to school but can’t bear educational expenditures.
Every day we encounter the grim face of poverty when we see children in dirty and torn clothes. Barefoot, unkempt, malnourished and dejected, they fend not only for themselves, but for their families as well by begging for food, alms or even worse, scavenging in bins and garbage dumps. We are confronted with poverty when we see the agony parents experience while cradling their critically sick child, as they cannot afford the high cost of healthcare. We turn a blind eye when poverty is manifested in tender hands toiling in adverse weather conditions. We silently curse the rhetoric of the policy makers when poverty in all its ugliness is presented in the form of a child crying for food.
Poverty is not the result of the personal failings of those struggling to make ends meet, but is the result of bad government policy that fails to adequately and fairly address the structural dysfunction of the labour market. The policies of government are based on the suggestions of officials who lack awareness about the problems of a common man. After implementation, the policies do not get effective result. After the failure of one policy, government does not consider its failure and announces another policy without studying the aftermaths of last one.
It's not that the adults who head families in poverty don't earn enough; they don't work enough. Critics often charge that nowadays "work doesn't work" in our "broken" economic system, by which they mean that wages are so wretched that the poor can't lift themselves up, even when employed. Heavy taxes and unemployment crush the people and they are forced to live below poverty line. The suitable medical facilities are not provided to people and they are forced to get treatment from private clinics which are too costly.
Poverty has many faces, changing from place to place and across time, and has been described in many ways. Most often, poverty is a situation people want to escape. So poverty is a call to action — for the poor and the wealthy alike — a call to change the world so that many more may have enough to eat, adequate shelter, access to education and health, protection from violence, and a voice in what happens in their communities.
Poverty is the mother of all crimes. Pakistan has pretty big young population but unskilled as compare to other emerging markets like China, Mexico, Turkey and even India. But again the problem is how can we educate when we have no funds to feed them? Gap between rich and poor is getting bigger. On one hand, there are those who have more than enough to last them a lifetime, and on the other, there are those who barely live, uncertain if they can even survive the cold and hunger.
Should we blame the government for not efficiently delivering the services it owes to the people? Should we blame the poor for not helping themselves? Certainly we cannot blame the rich for being too tied-up with their own concerns and sleeping in the comforts of their soft beds and air-conditioned rooms, or dining in fancy restaurants, and wearing branded clothing, or pampering themselves with must-haves and luxuries that they rightly deserve and can afford anyway.
What we need to do is to find solutions. We need to find the solution like macro finance that works very well in Bangladesh and now is being tried in India. The truth is that the easiest and most just way to eradicate poverty is to raise the minimum wages to levels which ensure a decent standard of living. Eradicating poverty is more than a matter of increasing income to purchase market goods and services. It entails more than expanding GNP. It entails creating jobs, meeting basic needs, respecting human rights and popular participation in the development process. The struggle against poverty is simultaneously a struggle for human dignity, sustainable development and peace.
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