Faisal Ahmad<\/p>\n
When the budget was announced last month, a declaration from the official floor quietly stated that those earning more than Rs 8483 per month are not considered poor. It took only a few hours for that statement to travel across our WhatsApp groups and Facebook feeds, first as a viral meme and then as a deeply troubling point to ponder. In the times when a single utility bill or a week\u2019s worth of groceries can swallow several times that amount, citizens watched in disbelief. Those in charge of economic affairs and government presumably know their math, but this benchmark reveals a stark disconnect between technical formulas and everyday human reality.
\nBeyond statistical definitions, Pakistan faces an unprecedented socio-economic challenge. National data shows that 29% of the population lives below the poverty level. However, independent economic bodies\u2019 estimates indicate that approximately 40% to 45% of Pakistan\u2019s population lives below lower-middle-income poverty thresholds. On the global stage, Pakistan\u2019s ranking on the Human Development Index (HDI) has steadily fallen toward the bottom tier (ranking 168th out of 193 countries), lagging significantly behind its South Asian neighbours. Multidimensional poverty indicators show that nearly 40% of Pakistanis lack access to clean drinking water, basic sanitation, adequate primary healthcare, and decent shelter. Furthermore, over 40% of children under five suffer from chronic stunting. How did the nation reach this juncture? The answer, however, lies in a combination of structural flaws and misaligned state priorities.Balochistan Travel Info
\nImproper planning and inadequate execution emerge as primary concerns. Policy design in Pakistan has long prioritised short-term crisis management over long-term structural reforms. Industrial policies favour uncompetitive sectors through tax exemptions, while agricultural productivity remains stagnant due to outdated land practices and exploitative market middlemen.
\nSevere budgetary constraints come second in this list. A massive share of federal revenue goes toward domestic and foreign debt servicing. With direct tax collection remaining low, the state relies heavily on indirect taxes (GST on electricity, fuel levies, and everyday food items), which hit low-income households the hardest.
\nMisaligned priorities of the government are another nail in the coffin. While physical infrastructure and trophy road projects receive continuous funding, basic public education and primary health receive roughly 1% to 2% of GDP combined. A country that underinvests in its youth cannot build a competitive workforce for the 21st century.
\nSo, to soften the blow of rising inflation, the government relies heavily on the Benazir Income Support Program(BISP). BISP was launched in 2008 with a noble objective: providing direct cash transfers to females of the poorest households to cushion them against extreme poverty. While BISP acts as an essential emergency life-support system-preventing destitute families from total starvation- it carries major structural limitations. A cash stipend buys grain for a few weeks, but does it create a skill, build a small business, or create a durable job? Absolutely not. Moreover, beneficiaries risk losing their monthly stipend if they take up formal work or buy a small physical asset, inadvertently discouraging families from striving for economic mobility. Furthermore, audits continue to reveal inclusion errors, duplicate entries, administrative leakages, and corruption, which prevents relief from reaching 100% of deserving families.
\nTo move from poorly managed poverty to true poverty elimination, Pakistan must adopt proven global strategies.
\nBRAC Graduation Model could be studied and applied. It was pioneered in Bangladesh. This approach transitions able-bodied welfare recipients off direct cash transfers within 24 months. Beneficiaries receive a time-bound cash stipend paired with mandatory trade skills training and a one-time grant of a productive physical asset (e.g livestock or micro-retail tools) so they can earn an independent living. Pakistan can transform BISP into this model by using the existing Benazir National Socio-Economic Registry (NSER) data to split beneficiaries into two groups: those unable to work (elderly, disabled, destitute widows) who receive permanent support, and able-bodied adults who enter a mandatory 2-year skills and asset graduation track.
\nChina lifted over 800 million people out of extreme poverty not by blanket cash handouts, but by mapping every impoverished household using a national database, identifying the exact cause of poverty and assigning specific local officials to solve it. China linked remote rural farmers directly to urban consumers through digital platforms. Smallholders could sell speciality crops or handicrafts directly without exploitative middlemen. This micro-industrialisation, called Jingzhun Fupin, encouraged small workshops in villages to produce components for larger urban factories. Pakistan can leverage existing cellular network coverage across Pakistan to onboard small rural artisans onto local e-commerce and logistics networks. Then, pair major industrial hubs (such as Faisalabad, Sialkot, and Gujranwala) with underdeveloped districts in Southern Punjab, Rural Sindh, and Balochistan to establish vocational satellite centres tailored to actual market labour demands.
\nLastly, shift the tax burden away from everyday consumer items and broaden the direct tax net to cover untaxed real estate, speculative urban land holdings, and wholesale trade. Redirect those revenues straight into basic primary education and technical skill centres.
\nRenowned economist Saeed Ahmed wrote in one of his columns that Poverty in Pakistan is not accidental. It is the outcome of deliberate policy choices, neglect and systemic flaws. The government is just managing poverty, which is inadequate. Safety nets like BISP are vital, but true progress requires building an economic ladder. Pakistan can begin to gradually lift its citizens out of systemic poverty by reforming the tax system, investing in youth, and transforming welfare into productive self-reliance. Only if those in power are willing to do so!<\/p>\n
The writer is an alumnus of QAU and FUI and takes an interest in social issues. He can be reached at fa7263125@gmail.com<\/p>\n","protected":false},"excerpt":{"rendered":"
Faisal Ahmad When the budget was announced last month, a declaration from the official floor quietly stated that those earning more than Rs 8483 per month are not considered poor. It took only a few hours for that statement to travel across our WhatsApp groups and Facebook feeds, first as a viral meme and then […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[13178],"class_list":["post-559083","post","type-post","status-publish","format-standard","category-article","tag-faisal-ahmad"],"yoast_head":"\n