A New Methodological Framework for Measuring Poverty in Pakistan (W-122)

A New Methodological Framework for Measuring Poverty in Pakistan (W-122)

Publication details

  • Thursday | 24 May, 2012
  • Muhammad Arif Naveed
  • Working Papers
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Arif Naveed and Tanweer-ul-Islam May 2012

This paper provides a critical analysis of poverty measurement in Pakistan and argues for adopting a multidimensional methodological framework. By applying the Alkire & Foster’s methodology over the RECOUP Household Survey data (2006-07) it provides multidimensional poverty estimates at the aggregate, provincial and district level and identifies the major drivers of poverty. The paper also elaborates how policy makers can prioritise the development budget among districts and allocation within each district based upon the level and nature of deprivation. Lastly, the paper empirically examines the effectiveness of the traditional measure of poverty, the consumption level, in explaining the multiple deprivations faced by poor households and establishes that consumption level alone is a poor measure of poverty.