Multidimensional measurement of poverty in Pakistan: provincial analysis

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. In urban areas of different provinces Balochistan is more multidimensionally poor followed by NWFP, Sindh and Punjab. As far as the rural area is concerned Balochistan is multidimensionally poor followed by Sindh, NWFP and then Punjab. Result shows 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 cutoffs 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 case of Pakistan.