Poverty and Its Economic Determinants in Pakistan: Evidence from PSLM 2010–11

This study estimates poverty in terms of head count ratio, poverty gap and squared poverty gap by using PSLM data for the year 2010–11 in Pakistan which are 15.06%, 2.29% and 0.55%, respectively in Pakistan. All of the poverty estimates are almost double in rural areas as compared to urban areas. There is decreasing trend in poverty between 2007–08 and 2010–11. This study also finds economic determinants of poverty by estimating multiple OLS regression. The results show that Poverty has statistically significant inverse relationship with education. Households having animals for transportation, owning residential buildings, shops and commercial buildings and living in urban areas have less poverty than those who do not. It has statistically significant positive association with household size and dependency ratio. As far as household head's employment status, occupation and industry is concerned, it is highest in sharecropper, construction and elementary occupation respectively.