Multidimensional measurement of poverty in Pakistan: Provincial analysis

Abstract

This paper has estimated multidimensional poverty for four provinces of Pakistan using Pakistan social and living standard measurement survey dataset for years 2005-06 by applying Alkire and Foster methodology. Nine dimensions were selected for this study: Housing, Electricity, Water, Asset, Sanitation, Education, Expenditure, Empowerment and Land. Results found that overall Balochistan shows the worst picture followed by nwfp, Sindh and Punjab. Urban and rural areas of Balochistan are more multidimensionally poor followed by nwfp, Sindh and Punjab. Results show that the most pervasive level of poverty exists in rural areas of different provinces. The analysis of contribution of each dimension in multidimensional poverty at different cut-offs showed that the major contributors are Land, Empowerment, Housing, Assets and Sanitation. This study also presents an empirical evidence of significant lack of overlap in the identification by the monetary and multidimensional approach in the case of Pakistan.