Group Members

Muhammad Waleed

Waseem Liaquat

Umar Farooq

Poverty

Poverty
Absolute Poverty : A situation where
individuals dont have access to basic requirements of life Food, Shelter and Clothing

Relative Poverty : is a poverty measure

based on a poor standard of living or a low income relative to the rest of society.

Poverty
Half the worlds population, about 3 billion, live on less

than $2 per day. Malnutrition, lack of health care, substandard housing, and illiteracy breed desperation, disease and daily suffering. Poverty traps future generations in a vicious cycle without hope or opportunity.

Poverty Statistics
Almost 30,000 children under the age of five die

Approximately 790 million people in the developing

world are chronically undernourished.

Nearly a billion people entered the 21st century unable

to read a book or sign their names.

Difference between Poor & Poorest

The term poorest or very poor

refers tovery poor refers to people living on less people living on less than $1 per day or in the bottom half of those living below their nations poverty line. in poverty above $1 per day or the upper half of those living below their nations poverty line.

The term poor means those living

Causes of Poverty
Decline in overall national Lack of access to

national growth Political instability Natural disasters Corruption Socio-economic disparities and disparities and prejudices prejudices. .

education Lack of infrastructure Lack of relevant laws &administrative procedures Lack of access to investment & credit, complete market information

Effects of Poverty
Without the security of formal jobs, each day the poor

work from dawn to dusk the poor work from dawn to dusk
All or most of the money earned go to basic survival.

There is little or no money left to improve quality of life.

Living in poverty almost always means that the harsh

reality of today will repeat itself tomorrow.

Effects of Poverty, continued

Poverty breeds poverty.If one cannot afford proper

nutrition or health care for ones family, children grow up at greater risk of acquiring a life threatening or disabling disease.
If one cannot afford to educate ones children, it will

be a repeat of their parents life

If one cannot afford to buy ones own land or home or

livestock, there are few opportunities to build assets that will last over time.

The 5 Poorest Countries Of The World

1. Democratic Republic of Congo (GDP per 2. 3. 4. 5.

capita: $300) Republic of Liberia (GDP per capita: $500) Republic of Zimbabwe (GDP per capita: $500) The Solomon Islands (GDP per capita: $600) Republic of Somalia (GDP per capita: $600)

Poverty in Pakistan

Causes of Poverty In Pakistan

Government Bad Policies
CORRUPTION Inflation

Smuggling
Overpopulation Unemployment Lack of education Law and order situation Foreign Investment

Governments Expenditures
It is estimated that around 5 Crore is spent on the

security of Prime Minister and the President Monthly expense of 1 minister = 30 Lacs, Monthly expense of 96 minister = 288000000 (28 Crore80 Lacs

CORRUPTION

Its a condition when People forget about mortality,

and dont care about the fact if money is being earned by fair means Only one relationship that is exists in society is money. One has to pay a heavy cost to get his right. Institutions have failed to provide justice to common Citizens.

Inflation
Poverty in Pakistan is increasing because of general

rise in prices of all products in Pakistan

Hence, it decreases purchasing power of people

earning low earnings/Wages/Salaries.

Smuggling
Pakistan was recently facing the shortage of sugar and

wheat due to the smuggling these items to neighboring countries. Pakistan is the 7th largest wheat producing, its consumption was 20 Million ton and produced 23 million ton recently Similarly Pakistan is the 4th largest sugercane producing country, but due to stocking habits of its ownersIt was facing severe sugar crises

Unempoyment
International Labour Organization defines, occurs

when people are without jobs and they have actively sought work Unemployment rate in 2009was 7.40 which is doubled in 2010, the current rate is15.20% When peoples are unemployed they consume the resources but are unable to contributein overall economy, which results in overt.

Law and Order Situation

There are lots of problem regarding Law & Order situation in Pakistan Terrorist attacks create uncertainty in stock marks and people earnings from stock are getting loss due to which the whole country faces uncertain increase in commodity prices Local Industries, Fims, are unable to sign agreements with foreign investors due to prevailing law order situation

Role of IMF
IMF loans usually come with conditions, 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