Poverty is a persistent and pervasive issue in Pakistan, affecting a significant portion of the population. Despite various poverty reduction programs implemented by the government, poverty levels have remained high, with many struggling to access the basic necessities such as food, shelter, and healthcare. The problem of poverty in Pakistan is complex and multi-faceted, rooted in systemic issues such as inadequate policies, lack of resources, and bureaucratic inefficiencies. The consequences of poverty are far-reaching, leading to decreased opportunities for education and employment, and perpetuating the cycle of poverty from one generation to the next.
The province of Sindh has a population of 50.4 million people (23% of the country’s population) and generates around 27% of the GDP. Almost half of the Sindh’s population lives in rural areas, and poverty looms large with nearly 52% of population eking out a living in these unforgotten lands. For the rural dwellers of Sindh, agriculture, animal husbandry and fishing serve as lifelines. However, persistent shortage of water in districts like Thatta, Badin, Umerkot, and pockets of Sanghar, Mirpurkhas, Dadu and Khairpur, due to mismanagement is the root cause of this poverty. The sea’s relentless intrusion, devastating cultivable lands, and irregularity of irrigation water supply, has brought the economy in these areas to virtual standstill. The situation highlights the needs for better management of water resources to alleviate poverty and bring hope to the rural communities of Sindh.
The floods that struck Pakistan in 2022 were a devastating event, causing an estimated loss of $30 billion. The aftermath of the floods has had a profound impact on the country, particularly in the province of Sindh which was the hardest hit. Approximately 70 percent of the total damages and losses from the floods occurred in Sindh, with other affected provinces including Balochistan, Khyber Pakhtunkhwa, and Punjab. The aftermath of the floods continues to pose serious challenges, particularly in terms of health and wellbeing. Stagnant flood waters in areas of Sindh have led to loss of livestock, and spread of diseases, putting lives of more eight million people at risk.
The situation is even more dire by the results of the Post Disaster Needs Assessment, which revealed that the poverty rate in Sindh may increase by as much as 8.7 to 9.7 percentage points. This would potentially push an additional 1.2 million households below the poverty line, making it even more difficult for these individuals and families to access basic necessities such as food, shelter, and healthcare. The floods have had devastating impact on the people of Pakistan, and it will take time, resources, and a concerted effort to fully recover and rebuild. However, with the right support and intervention, it is possible to mitigate the long-term impact of this disaster and help those affected to rebuild their lives.
The plight of the poor in Sindh is dire and threatens to only worsen with time. Even in fertile regions with more favorable water conditions, poverty and malnutrition still run rampant, depriving these individuals of education, clean water and basic healthcare. It’s imperative that the government takes urgent action to tackle this growing crisis. Piecemeal solutions such as distributing livestock, opening local craft centers, installing pumps, building culverts, constructing a limited number of houses, will not suffice in the face of such widespread poverty and suffering. Simply put, the government’s efforts, or even in joint public-private initiatives, are not enough to keep pace with the monster of poverty that is quickly encroaching on these communities.
The current economic scenario in Pakistan is challenging, to say the least. The country is grappling with a difficult combination of stagnation and inflation, commonly referred as stagflation. The fear of an economic default continues to haunt the market, creating uncertainty and instability. However, there are some positive signs on the horizon. According to the latest World Bank report “As the country implements policy measures to stabilize its conditions, inflationary pressures dissipate, and rebuilding begins following the floods, growth is expected to pick up to a modest 3.2 percent in Fiscal Year 2023-2024.”
The issue of poverty has long been a challenge for Pakistan, with various poverty reduction programs being implemented throughout the country’s history. Despite efforts, poverty levels have continued to rise, highlighting the inadequate and ineffective strategies adopted to address this deep-rooted problem. Furthermore, successive governments have often focused on achieving immediate results rather than addressing the underlying multidimensional vulnerabilities that perpetuate poverty. It is only during periods of higher economic growth that the number of people living in poverty decreases. However, increasing socioeconomic vulnerabilities, and inequalities make it likely that unexpected shocks such as pandemic like Covid-19 or the calamity of floods could easily push vulnerable groups into poverty.
On Feb 1, 2023 the Pakistani government initiated formal negotiations with International Monetary Fund (IMF) with the aim of devising a comprehensive strategy to revive its struggling economy. The negotiations centered around the release of first installment of $1.1 billion from a $6.5 billion bailout package intended to mitigate the economic turmoil that plagued the country. Other than that, Pakistan’s central bank’s foreign exchange reserves decreased by 16% to $3 billion, in the week ending January 27. Acute shortage of foreign reserves means that imports, including essential medicines are scarce and unobtainable. Pakistan’s facing highest level of inflation since 1975 with the cost of perishable items increasing more than 60 percent. With poverty, inflation, recovery from disastrous floods, and unemployment soaring Pakistan is facing one of the worst economic crises in history, jeopardizing millions of people’s rights to health, food, and an adequate standard of living.
Pakistan will have a population of 350 million people by 2050 who will have to be fed, sheltered, clothed and gainfully employed in the environment where generation of staple food, electricity, natural resources and the availability of water are likely to be declining. In other words, the increased population’s demands will expand by 50 percent. As aligned with the sustainable development goals, the challenge is to meet the needs of the future generations to come and to achieve a sustainable reduction in poverty, the government must formulate a comprehensive, long-term program that addresses the various dimensions of poverty through increased pro-poor expenditure. Macroeconomic stabilization has to be the top priority but the policy interventions have to be targeted at the most vulnerable and poor segments of the population in affected districts. It’s high time for the government to take actions as delays in addressing the economic challenges could further exacerbate the already tensed situation of Pakistan.
