Reflecting The Dynamics of Pro Poor Growth in Developing Economy of Pakistan: Evidence of National and Sub National Level

Abstract

The present study chief objective is to inspect the pro-poor growth patternat national, regional and provincial level in Pakistan. Three different families of index, FGT (1984), Gini-coefficient and Poverty Equivalent Growth (PEGR) along with HIES cross-sectional data since 2013-14 to 2018-19 has been employed to globally accepted outcomes. An estimated results reveals that for the Pakistan’s developing economy, poverty is purely rural phenomenon while contrarily income disparity is an urban phenomenon. However, both poverty and income disparity present declining (hybrid) trend in Pakistan its province and regions since 2013-14 to 2018-19. Similarly, PEGR, empirics highlight that since 2013-14 to 2018-19 Pakistan achieved excellent growth performance that financially stronger the residents and leads to strongly pro-poor growth pattern at national, provincial and regional level in Pakistan because during growth performance poor enjoy significant higher benefits from growth as compared to non-poor complements. However, since 2013-14 to 2015-16 due to little bit financial crises in an economy the pattern of growth was found anti-poor at national, regional and provincial level. Finally, since 2015-16 to 2018-19 the pattern of growth has also remained pro-poor in study area despite of recession. Because, during the negative growth period the ruling government launched the financially supporting program EP (Ehsas Program) and ERP (Ehsas Rashaan Program) for poor that improve their financial status and decline income disparity between upper- and lower-income residences. Precise declining income disparity counterbalance the poverty increasing and negative growth impact and leads to pro-poor growth pattern.