Estimation of Multidimensional Poverty in Pakistan

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This study is the first attempt to quantify the extent of multidimensional poverty in the context of Pakistan. It involves developing multidimensional poverty indices (headcount, poverty gap, and poverty severity) and comparing them with the traditional income approach. It has been estimated, using household data for 2004-05, that about 54 percent of the population is poor in terms of socio-economic dimensions (including income) used in constructing multidimensional poverty incidence, while the estimated income/consumption poverty for the same year was 30 percent. The results also show that rural multidimensional poverty indices are substantially high as compared to urban poverty indices. To check the consistency and inter-temporal sensitivity of methodology, multidimensional poverty indices were also estimated for 2000-01.