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PRESENTED TO : Mam Mubashira Ghori

Topic : Pakistan on the Track of Poverty  

MEMBERS
• Faisal Raja FA09-BBA-028 • Syed Muhammad Hilal FA09-BBA-090 • Safdar Saeed FA09-BBA-063 • Nasir Raja FA09-BBA-060 • Amir Qasim FA09-BBA-050 • Abdul Rahman FA09-BBA001 • Asim Ali FA09-BBA-112 • Asim Javaid FA09-BBA-016 • Usman Raja FA09-BBA-098

Poverty
Poverty refers to the condition of not having the means to afford basic human needs such as clean water, nutrition, health care, education, clothing and shelter. E d u ca ti n o • S ta b l e m p l ym e n t e o

se cu ri ty m i i u m h o u si g sta n d a rd s n m n

Poverty Rate in Pakistan
 Poverty rate jumped from 23.9% to 37.5% in three years after severe economic shocks hit Pakistan last year.

 Although the middle-class has grown in Pakistan to 35 million, nearly onequarter of the population is classified poor as of October 2006.

 As of 2008, 17.2% of the total population lives below the poverty line,

Causes of Poverty in Pakistan
          Government Bad Policies. Government extra expenses. Corruption. Overpopulation. Unemployment. Lack of Education. Inflation. Law and Order situation. Decline in Foreign investment. Role of West and IMF .

Government Bad Policies
• Government is not well aware of present conditions of country. The policies of government are base on the suggestions of officials which do not have awareness about the problems of a common man. • We have collected some bad policies of Pakistani Government which are given below • Pakistan’s Gold and Copper reserves sold in pennies, minimum worth of those reserves was $65bill which is sold in only $21bill • • Pakistan’s UPS and batteries import is $10 Billion, but we require only $7 Billion on Kala Bagh Dam Project by which we can generate 7500MW electricity

Continued……
Government is unable to manage the departments and country has low reserve assets. So the meet the requirements some companies run by government are sold to foreign investors • • Pakistan steel mill cost’s Rs.300 Arab but it is sold in Rs.21 Arab. • • Habib Bank Ltd. Cost Rs.140 Arab but sold in Rs.14 Arab. • • PTCL cost Rs.700 Arab but sold in only Rs.120 Arab

Govt. Extra Expenditure
We have collected some Facts and Figures about High Expense of Govt. Officials which are given below: • • 500000000 (5 Crore) per year is spend on the security of President and Prime minister • • Monthly expense of 1 minister = 30 Lacs  Monthly expense of 96 minister = 288000000 (28 Crore 80 Lacs)  Expence of 96 ministers per year = 3 Arab, 45 Crore, 60 Lacs •

• •

Continued……
• National Assembly + Senate = 440 Members  Provincial Assembly = 636 Members  Total = 1076 Members

Every member have luxury and expensive vehicle, none of them is car less and also none of them is going alone to his office, they Have 4 to 8 vehicles security squad
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So 1076 x 4 = 4304 cars at least!  If each car consumes fuel of 500 daily then :  4303 x 500 = 2152000 per day  2152000 x 30 = 64560000 per month  64560000 x 12 = 77 Crore, 47 Lacs, 20 Thousands rupees per year,

This is only the estimate of fuel, now you can think yourselves about their eating expense, their salaries, their visits etc.

CORRUPTION
• It is the condition when there is not morality and every one is trying to earn more and more by using fair and unfair means. • Only one relationship that is exists in society is money. One has to pay a heavy cost to get his right. • Law and order conditions are out of control and institutions are failed to provide justice to a common man. • In this whole scenario some corrupt people has been occupying the resources and common man is living in miserable conditions, which brings more poverty in the state.

Inflation
I fl ti n i a ri i th e g e n e ra l n a o s se n l ve lo f p ri s o f g o o d s a n d e ce se rvi s. ce  Po ve rty i Pa ki n i i cre a si g n sta s n n d u e to th e cu rre n t l ye r o f a I fl ti n . n a o  I fl ti n d e cre a se th e n a o p u rch a si g p o w e r o f so ci ty , n e p e o p l s a re u n a b l to fu l l e e fi l th e i n e e d s a n d re su l i r ts n stre n g th e n th e Po v e rty ra te .

Smuggling
• Pakistan is recently facing the shortage of sugar and wheat due to the smuggling these items to neighboring countries. • • Pakistan is the 7th largest wheat producing country. Total wheat consumption of Pakistan is 20 million tones, while production of wheat last year was 23 million tones. • • Similarly Pakistan is 4th largest sugarcane producing country but facing the swear

Overpopulation
 The estimated Population of Pakistan in 2010 is over 169,478,000, making it the world's sixth mostpopulous country.   About 20% of the population lives below the international poverty line of US$1.25 a day.   such a large population will undermine efforts being undertaken to reduce poverty and to improve the standards of living of the populace.

Unemployment
• “A person is unemployed if he or she did not worked during the preceding week but made some effort to find working the past four weeks” • • Unemployment rate in 2009 was 7.40 which is doubled in 2010, the current rate is 15.20% • • When peoples are unemployed they consume the resources but are unable to contribute in overall economy, which results in poverty.

Lack of Education
T h e l te ra cy ra te o f Pa ki n i i sta s ve ry l w . M o st o f p e o p l d o n o t o e h a ve a n y co n ce p t a b o u t th e m o d e rn e a rn i g so u rce s. n  M o st p e o p l a re u n a b l to a d o p t e e te ch n o l g y fo r th e i b u si e ss o r n n e e d s, th a t’ s w h y b u si e ss d o n n o t m e e t i te rn a ti n a l n o sta n d a rd s a n d re su l a s ts d e cre a se i re ve n u e w h i l a d n ch e th e so ci ty to p o o r fi a n ci l e n a co n d i o n s ti

Law and Order Situation
T h e re a re l t o f p ro b l m s o e re g a rd i g l w a n d o rd e r. n a Te rro ri a tta cks cre a te st u n ce rta i ty i sto ck n n m a rke ts a n d p e o p l e e a rn i g fro m sto ck a re n g e tti g l ss d u e to w h i n o ch th e w h o l co u n try fa ce s e u n ce rta i i cre a se i n n n co m m o d i p ri s. ty ce  Pa ki n ifi s a re u n a b l to sta rm e si n a g re e m e n t w i g th fo re i n i ve sto rs d u e to g n th e p re va i i g l w a n d ln a o rd e r si a ti n . tu o

Foreign investment
T h e FD I h a s p l ye d a vi lro l a ta e i th e e co n o m i g ro w th o f n c Pa ki n . sta  Po l ti li sta b i i , te rro ri i ca n l ty st a tta cks, p o w e r, g a s a n d w a te r sh o rta g e a n d w e a k l w o rd e r co n tro lh a s l d to a e fa l i g tre n d i FD I ln n .  T h e se a re th e m a j r re a so n s o d u e to w h i th e fo re i n ch g i ve sto rs a re n o t i te re ste d n n i i ve sti g th e i ca p i li n n n r ta n Pa ki n . T h e a fte r m a th sta a l a ys b e fa ce d b y p o o r w peopl . e

Role of West and IMF
• The International Monetary Fund (IMF) is the international organization that oversees the global financial system by following the macroeconomic policies of its member countries. • IMF loans usually come with conditionalities, restrictions and requirements imposed by IMF on the borrowing country. • Pakistan is also seeking the help from IMF on very dangerous conditions which are causing more poverty in the country. Some of the conditions are Listed Below:
– – – – –

Put an end to subsidies on all products. Taxes should be increased. Govt. expenditure should be stop. cut military spending by almost a third. Pakistani currency will be devalued.

Solutions to Remove Poverty
– – Govt. should make the Policies in Favor of Pakistan, and Pakistani people. – Govt. should not waste national assets and utilize them to remove the poverty – Corruption should put to an end and Judiciary should take some action against corrupt people. – Population rate should be controlled. – Govt. should make policies to provide employment to the Labor force.

Continued
– – Smuggling should be stop by enforcing the Law and Order. – Law and order situation must be improved to bring back the Foreign Direct Investment (FDI). – Govt. should think first about the healthcare, education, energy crisis instead of Defense and Armory. – We should relay on ourselves instead of IMF.

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