The author discusses the ongoing issue of poverty in Pakistan, where over a quarter of the population struggles to meet basic needs, despite a decline in absolute poverty over time. Although the number of impoverished individuals exceeds that of 1947, various poverty alleviation and social protection measures have been implemented since the mid-20th century. Key initiatives include Village Aid and Rural Works Programs in the 1950s and 1960s, Zakat in the 1980s, Bait-ul-Mal in the 1990s, the Poverty Reduction Strategy Paper (PRSP) in the 2000s, the Benazir Income Support Programme (BISP) starting in 2008, and a dedicated federal ministry for poverty alleviation established in 2019. The provinces, such as Punjab’s Social Protection Authority, have also taken measures.
Public spending on social protection and poverty alleviation has increased drastically over the past two decades, exceeding a trillion rupees from 2015. BISP’s allocation has seen a notable rise from PKR 34 billion in 2008 to even higher amounts in subsequent years. These social safety nets have emerged largely in response to economic stagnation, high inflation, and external donor influence. The programs fall into three categories:
1. Social insurance programs, where beneficiaries contribute to receive benefits later, including schemes like the Employees’ Old Age Benefits Institution (EOBI) and Worker Welfare Fund (WWF). However, their reach is limited due to knowledge gaps and the informal economy.
2. Social assistance programs are non-contributory and aimed at vulnerable groups like Zakat and BISP. Some of these have seen substantial budget increases.
3. Labour market programs focusing on skill development for youth and unemployment protection include initiatives like the Prime Minister’s Youth Skills Development Program.
Despite the array of initiatives, the text argues that they have not effectively built resilience, equity, or opportunity for vulnerable populations. Issues highlighted include politicization, inadequate targeting of programs, and overly ambitious schemes lacking alignment with the country’s economic realities. The author concludes that without sustained economic growth and skill development, social protection efforts alone cannot alleviate poverty in Pakistan.
