This website uses cookies to ensure you have the best experience. Learn more

Poverty Reduction Strategies In Pakistan Essay

3139 words - 13 pages

Structural adjustment loans have been among the important leveraging tools of bi and multilateral donors in the post-war era. They have come to dominate economic policy contexts of a large majority of poor countries, and ostensibly will continue to do so as the debt trap intensifies. In Pakistan, beginning in the 1980s, the adoption of structural adjustment programs began in earnest, with collaboration between the Pakistani government and international financial organizations (IFIs). This paper will trace the adoption and development of the structural adjustment and poverty reduction strategies (PRSs) adopted in Pakistan over the past two decades, highlighting the recurrent failures and ...view middle of the document...

As debt piled up, the country's credit rating plummeted. Meanwhile the economy started to stagnate, suffering from the drop in remittances from abroad. A growth rate of over 5% in the 1980s could not be sustained and the budget deficit increased steadily. Revenues were dismal as always - taxes on consumer goods kept the economy afloat, as they do now, the poor bearing the brunt of a lack of political will. This was the picture of Pakistan's economy through the 1990s, and it was under this backdrop that each of the SAPs were signed and more loans were pumped into the economy.In the post September 11th period, IFIs have warmed up to Pakistan again, as have many bilateral donors, based on the country's sterling response to US calls for cooperation against 'terrorists'. The main elements of the newest packages are as before - a focus on reduction of subsidies, the need to increase revenues, reduction of budget deficits, privatization, and trade liberalization.And so the ultimate question: what have the impacts of these policies been? Let us look at the structural economy, as the IFIs are so fond of reminding us that the focus of stabilization programs is to reinvigorate the economy at its roots. Pakistan balance of payments position has deteriorated over the past 2 decades, almost to the point of no return. Pakistan's total debt stands equivalent to annual GDP. Almost half of the annual budget goes to servicing debt. In 2000-2001, of a total of US$6.7 billion that was loaned to the country, US$6.2 billion was used to pay off outstanding debt, and the remainder used to beef up meager foreign reserves.Additionally, the much emphasized exchange rate stability has not been achieved; the value of the Pakistani rupee has plunged in the past 10-15 years. The supposed removal of price distortions in agricultural and manufacture durable markets has not led to the increase in exports that has been so widely envisaged and preached about. In fact, the import burden has increased, and terms of trade for Pakistani exports, whether agricultural or textiles, have fallen. Meanwhile prices have risen steadily and alarmingly, causing rampant inflation - yet another failed target. Real wages have also declined significantly and unemployment has also increased.These impacts have all been the subject of discussions in various external evaluations of structural adjustment commissioned by the IMF. The major external evaluation of ESAP in recent years stresses two possible sets of impacts, those via private incomes, and those via social expenditures. In both cases, the evaluation suggests that there is a tendency for the poor and marginalized to lose out, even if theory would not necessarily have predicted such outcomes. In particular, the evaluation emphasizes the fact that short-term losses are usually too large for the poor, and that there are inadequate safety nets to compensate. There is also a sense that structural adjustment is definitely "one size fits all" and that...

Find Another Essay On Poverty Reduction Strategies In Pakistan

IMPACT OF POOR GOVERNANCE AND INCOME INEQUALITY ON POVERTY IN PAKISTAN

2341 words - 9 pages institutions, uncontrollable corruption, lawlessness, terrorism and income inequality. One of the reasons of widespread poverty in Pakistan is poor governance and income inequality. Good governance is closely linked with poverty reduction. If power and authorities are ill functioning and misused, the poor would be deprived not only from basic necessities of life but would also be excluded socially and this would put them in the most deplorable state

Impact of Poor Governance and Income Inequality on Poverty in Pakistan

1657 words - 7 pages affected by bad governance and it sabotages the efforts made to decrease poverty. They found evidence on the impact of poor governance on poverty alleviation and showed that poverty reduction was faster in areas that exercise better and improved governance. Anwar (2006) is of the view that had the governance indicators improved in Pakistan, the reduction in poverty would have been much faster; and proposed that there is a need to pursue governance

Mountain Dew: Reasons for failure in Pakistan, Marketing analysis, Strategies, USP, Pricing strategy, competitive analysis, market segmentation, target market, etc

8497 words - 34 pages inherited traditions, traditional norms and values. Due to low-income level and high poverty rate of around 33.5 percent, 52 million people fall below the poverty line approximately 38% population. Unfortunately, due to high poverty and illiteracy rate people don't have the purchasing power to afford the products which has a very cost. Every household utilizes soft drinks in Pakistan, whether it's urban or rural areas, as different segments of the

poverty and pakistan

637 words - 3 pages , poverty is grave concern for the government and policy makers. Pakistan, after its independence, has experienced highs and lows of economic growth with increase and reduction in poverty. There is also a big difference in poverty levels between rural and urban places in Pakistan. This difference in poverty levels is due to the structure of Pakistan’s economy and the way this economic structure changed over the course of time and with changing

Pakistan Should Be Open to Trade with Inida

2322 words - 9 pages way through which trading can benefit Pakistan’s economy is that it will help in the reduction of overall import bill of Pakistan thus boosting net income of Pakistan. Trading with India compared to other countries will prove cheaper because the raw material imported from India will be less costly as compared to the imports of the same material from other countries like China and America. Examples of such raw materials include coal and motor oil

Pakistan: The Country with Unpredictable Future

952 words - 4 pages suggested were joint rule or a redivision of the Kashmir territory. On November 11, 2004 India's prime minister ordered a reduction in the number of troops in the disputed Muslim-majority state of Kashmir, breathing new life into a peace process with Pakistan(Bidwai, pp.51-104).Unfortunately, no major progress can take place in South Asia without the improvement of both Indo-Pakistani and Sino-Indian relations. Until these states stop perceiving

Pakistan

788 words - 3 pages . (Jaffrelot256-7). The economy of Pakistan has spiraled out of control to the point that one third of the population lives below the poverty level. (Jaffrelot258). Major export products are:* Agriculture: wheat, cotton, rice, milk and sugar cane.* Mining: petroleum and natural gas.* Manufacturing: cotton textiles, clothing, food products, fertilizer. (W.B.O.1)Climate and LandThe climate in Pakistan varies from different seasons, elevations and regions of the

Pakistan and its Failing State Status

1750 words - 7 pages education (whereas there is no middle ground: citizens are either well-off financially and educated, or they are in poverty with no chance of formal schooling.) This factor also encompasses the infant mortality rate, in which Pakistan has one of the highest rates in the world (70 per every thousand births.) The other economic factor of a failing state is that of sharp economic decline, including drops in trade revenues, foreign investments and/or

India vs. Pakistan

5097 words - 20 pages Maulvi Abbas Ansari, a separatist leader in Srinagar.On November 11, 2004 India's prime minister ordered a reduction in the number of troops in the disputed Muslim-majority state of Kashmir, breathing new life into a peace process with Pakistan. Manmohan Singh, said the move reflects an improvement in the security situation. Mr Singh did not reveal the scale of the withdrawal. India has 500,000 soldiers in Kashmir, Pakistan has welcomed the move

Developing the Third World

2218 words - 9 pages is important to address these problems in order to improve the lives of this majority. The creation of credit markets in poor countries is a crucial factor for their development. Therefore poverty management strategies, such as Microfinance, have been put in place to address the issue of poverty and promote development. Despite criticism, Microfinance has proven to be an effective tool towards promoting development in ‘third world’ countries

Nuclear feasibility in Pakistan

2203 words - 9 pages and 720 gallons/MWh with wet cooling towers.(13) Pakistan already faces a shortage of both drinking water and water used for irrigation especially in rural areas owing to the less rainfall and the less storage capacity available and construction more nuclear power plants means that more water would be dedicated towards nuclear power plants resulting in the reduction of water used for irrigation which is the main source of economy of Pakistan. The

Similar Essays

Impact Of Foreign Remittances On Economic Growth And Poverty Reduction In Pakistan

2476 words - 10 pages inflow and its implication for economic growth and poverty reduction in Pakistan. By using ARDL approach study analyzed the impact of remittances inflow on economic growth and poverty in Pakistan for the period 1973-2007.The study specify two independent models to deal with remittances, growth and poverty. To explore the impact of remittances on economic Growth, GDP is taken as dependent variable while remittances as percentage of GDP, gross fixed

Poverty In Pakistan: Causes And Consequences

1746 words - 7 pages , poverty is grave concern for the government and policy makers. Pakistan, after its independence, has experienced highs and lows of economic growth with increase and reduction in poverty. There is also a big difference in poverty levels between rural and urban places in Pakistan. This difference in poverty levels is due to the structure of Pakistan’s economy and the way this economic structure changed over the course of time and with changing

The Issue Of Poverty As A Whole In Pakistan

1329 words - 6 pages This is considered not out of the norm for many families in Pakistan. Many of them have had to make enormous sacrifices in order to survive in these hard times. As seen in the previous paragraph children who are to sacrifice their education to help the family during times of poverty, may never really be able to receive an education later. For most families that are in the same situation like Rafiq and his family, the basic necessities such as

Issue Of Poverty As A Whole In Pakistan

1263 words - 6 pages not paying the money and that he should’ve been more responsible with how he conducted the business negotiations. But what many forget to recognize is that this man didn’t have that much in the beginning. He lived in a small hut and he needed to borrow money because he didn’t have it. But if that’s still not enough to help the case of severe poverty in Pakistan, here is another example of how bad it is. Just last year in the fall season, there