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Estimating Working Poverty in Pakistan Evidence from National, Rural and Urban Population

Khalid Zaman, Iqtidar Ali Shah, Imran Naseem


The aim of this paper is to estimate the population of working poor in
the labour market in Pakistan. This study covered two different poverty ratios at two
different times i.e., $1.25 per day from 1987-2005 and official national poverty line
at 2350 calorie per adult equivalent per day from 1979-2006 respectively. The main
finding suggests that there are around 1.618 million working poor during 2004-05.
These figures imply that around 3.7 percent of the employed persons in the Pakistan
are currently living on less than $1.25 per day. Similarly, around 1.631 million working
poor (3.4 percent of working population) in the Pakistan are living below the official
national poverty line i.e., Rs. 945.45 per month in 2005-06. In rural Pakistan, there
is an estimated 0.957 million working poor, with lower and upper estimates of 0.812
million and 1.102 million respectively. These figures imply that around 4.7 percent
of total working poor in the rural Pakistan are currently living on less than 2,450
calories per equivalent per day. In urban Pakistan, there are an estimated 0.673 million
working poor with lower and upper estimates of 0.613 million and 0.730 million
respectively. These figures imply that around 2.5 percent of total working poor in the
urban Pakistan are currently living on less than 2,150 calories per equivalent per day.
Government should focus on working poor estimates and introduce reform packages
for the working poor in Pakistan.


Poverty - Working Poverty - Employment - Labor Force Participation Rate - Pakistan

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