Assignment # 2

• Identify one best performing and one least

performing district and write a note:
– What is main source of income
– Why they are poor and in which dimension
– Suggestions for the improvement

– Deadline: 6th April 2021

National Poverty
Report Pakistan
2015-16
 Introduction
• Pakistan has a strong tradition of poverty estimation
since early 1960s, mostly by independent researchers
using the secondary published data of the household
income and expenditure surveys (HIES). The estimation
of poverty based on the micro-data of HIES was started
in 1980s, and the Pakistan Bureau of Statistics (PBS)
was the first public sector institution which estimated
the poverty number from HIES in 1990s by applying
Food Energy Intake (FEI) method on the micro datasets.
 Introduction
• However, for poverty estimates of 2013-14,
the GoP adopted the cost of basic needs
(CBN) methodology and estimated the
poverty line for this period as Rs 3030.32
per adult equivalent per month. After the
release of Household Integrated Income and
Consumption Survey (HIICS) 2015-16, the
GoP estimated 2015-16 HIICS micro-data
using the recently adopted CBN method.
Poverty Lines
Bands in Poverty
 Poverty, Inequality, and Social
Welfare
• What’s So Bad about Extreme Inequality?
• Dualistic Development and Shifting Lorenz
Curves: Some Stylized Typologies
– Traditional sector enrichment
– Modern sector enrichment
– Modern sector enlargement
Improved Income Distribution under the Traditional-Sector
Enrichment Growth Typology
Worsened Income Distribution under the Modern-Sector
Enrichment Growth Typology
Crossing Lorenz Curves in the Modern-Sector Enlargement
Growth Typology
 Poverty, Inequality, and Social
Welfare
• Kuznets’ Inverted-U Hypothesis
The “Inverted-U” Kuznets Curve
Selected Income Distribution Estimates
 Income and Inequality in Selected Countries

0=Perfect equality, 1=perfect inequality

Kuznets Curve with Latin American Countries
Identified
Plot of Inequality Data for Selected Countries