Impact of GDP Growth Rate on Poverty of Pakistan: A quantitative Approach

The main objective of this study was to measure the impact of DGP growth rate on poverty of Pakistan. Secondary data pertaining from 1980 to 2012 were collected from Economic surveys of Pakistan, ministry of finance, Federal Bureau of Statistics and planning commission of Pakistan. Growth Elasticity of Poverty tool was used to estimate the impact. Head Count Index/Ratio declines and Povcal Net were used to measure poverty and degree of absolute poverty respectively. The results revealed that the GDP growth elasticity in terms of poverty was to the current poverty level in Pakistan. Again, rising unemployment lacks of opportunities for the highly less elastic i.e. a major change in GDP growth rate puts minor change in poverty. Policy failure of the government, poverty eradication policy, Global recession found the main factors contributing underprivileged class have created an alarming situation in the country.