Since the Pakistan Tehreek-e-Insaf (PTI) government came into power, 18 million more people may slip into power. The reason is slow economic growth and huge food inflation. This is claimed by the renowned economist of Pakistan Dr. Hafiz A Pasha.
According to Dr. Pasha, the national poverty ratio will jump to over 40% by June 2020 from 31.3% in June 2018.
Further stating that people living in poverty will increase to 87 million by June 2020 from 69 million in June 2018. This indicates a 26% increase in poverty. We can also say that 18 million people will become poor as the PTI government completes its first two years in power.
8 million people have already been added to the ranks of the poor by the end of the first year of the PTI government, as claimed by Pasha.
By the end of the current fiscal year, 10 million more people are expected to slip below the poverty line.
Pasha said, “The situation is very alarming due to an economic growth rate that is close to the population growth rate and an exponential increase in prices of perishable food items.”
Pasha’s findings are based on cost-based methodology amid the federal authorities.
Federal Minister for Planning and Development Asad Umar said, “We do not have the latest official poverty statistics.”
According to the Minister, Pakistan is exiting a mega balance of payments crisis that has its own consequences. According to Umar, the current PTI government has enhanced poverty alleviation measures aiming to protect the poor and vulnerable from the negative impact of the macroeconomic adjustments.
According to Pasha the decision by the government to increase the taxes, energy tariffs and currency devaluation have highly contributed to the increase in poverty.