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Causes Of Poverty In Pakistan
In Pakistan, currently more than 20% people are
living below the poverty line. People in the rural areas are poorer
than in the urban areas. Pakistan and foreign economists have
different criteria to describe poverty. According to some foreign
economists, if a person's daily income is less than one dollar a
day, then he is considered as living below the poverty line.
Some foreign economists suggest 2 dollars, instead of one dollar a
day for poverty line. The biggest reason for poverty in Pakistan is
the backwardness of the agriculture sector. Nearly 66% of the
population, living in the rural areas, is lowly paid.
Data from the agriculture census of Pakistan, conducted in 1990,
shows that cultivated land in unequally distributed in Pakistan.
Poor farmers have no availability of adequate and cheap
fertilizers, pesticides, quality seeds, water, latest technology
and consultancy services. They have no capital to improve their
lands, that's why their income level is low and poverty especially
prevails in the rural areas.
The second reason for poverty is the unfair distribution of income
among people. The poor are becoming poorer and the rich becoming
richer. In Ayub's era there were 22 families, who had control of
the majority of the national income. In the present, the situation
is the same with a slight difference.
Such unequal distribution of income is creating restlessness among
the less income class. They have less money to fulfill their basic
needs like food, health, education and housing etc, that's why the
poverty level is growing day by day. In fact, the non-adoption of
Islamic economic system and the capitalistic system are responsible
for such an unfair division of wealth.
The third reason for poverty is the rapidly growing population of
the country. Population-wise Pakistan is the 6th largest country in
the world and its population growth rate is 1.8%, which is the
highest in the region. Pakistan's GDP growth rate is less than 3%.
So, there is a shortage of goods and services like food, clothing,
housing facilities, education and health etc all these things are
inadequate to meet the necessities of a growing population. One
earning hand has to feed a large number of family members. Due to
the high level of demand and less production, there is general
poverty.
The fourth reason for poverty is inflation, which is a king of
regressive tax on the fixed income class. Due to inflation, the
salaried and fixed income group is more affected than the business
class. The employees' salaries are not increased by the government
in proportion to inflation, but their expenditures are increasing,
day by day, due to dearness.
Less income and the low level of saving are responsible for
poverty. Increase in the prices of oil at the international level
is also enhancing poverty. Fifthly, our industrial sector is very
backward the share of this sector in national income is less than
20%, which is very low as compared to the developed economies.
Due to industrial backwardness, our exports are less, rather we
have to import electrical and industrial items at high rates. A
huge portion of foreign exchange reserves in consumed for
industrial imports. The low level of living and poverty is related
to the backwardness of this sector directly of indirectly.
The sixth reason for poverty is the low level of education and the
defective education system. In Pakistan, the literacy rate is only
56%, which is very low in the world. Due to the few technical,
engineering and research institutions, the productivity of labour
is very low and our human resources are outdated, both
qualitatively and quantitatively.
Women are not given the chance to participate in national,
economic, social and educational activities. Due to the scarce
access to education, the majority of people have a low level of
income, directly of indirectly, resulting in poverty.
Seventhly, poor governance is responsible for creating poverty.
Good governance is an essential and important pre-condition for
growth and development. But in Pakistan, such a scenario is
different. People have less access to justice and national decision
making. There is corruption, political instability, a disturbed law
and order situation, red tapism, terrorism, bomb blasts and delay
in the system etc.
Such things are hurting the public's confidence, and they take less
interest in the different economic activities. Due to low
production, there is general poverty. The eight reason for poverty
is the weak taxation system. If the taxation system is not in
favour of the general public and the investment sector, then output
and economic activities would be sluggish.
Indirect taxes like general sales tax, customs duty, excise duty
etc, affect the investment climate and poor consumers greatly.
Ultimately there will be poverty. Black marketing, hoarding,
smuggling, profiteering, nepotism, corruption of a specific
community is exploiting the poor people of Pakistan, making them
poorer.
BY: FIDA KARIM
Karachi.
Currently the writer is a student of M.A
economics in University of Karachi. He is interested in Development
Sector and Political economy.
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Inadequate Hospital in Pakistan
Respected Sir!
Maria Gul in her article of Sep30, 2009 best observed the
current pathetic situations of hospitals especially the Govt
hospitals in our country including the hospitals in Chitral. I
myself visited the Tehsil municipal Hospital (TMH) last month and
observed very closely every thing. It was quite in pathetic and
dilapidated to see.
Without criticizing any more I very solemnly
request the concerned authorities to see the situation.
Moreover there is no military hospital in Chitral district. Unlike
all other districts in Pakistan, Chitral is lacking CMH, Which is
very important. The lacking of CMH results in shifting of most
patients to CMH's of other places. Who are not normally treated in
Chitral.
Nazir Ali
Karachi University
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