- CPEC and the blue economy offer Pakistan crucial opportunities to reduce poverty and drive economic growth sustainably.
Poverty is a complex and multifaceted phenomenon characterized by the lack of access to basic necessities such as food, clean water, shelter, healthcare, and education. It is a state of economic deprivation that affects individuals, families, and communities, limiting their opportunities for social mobility, economic growth, and overall well-being. Poverty can be measured in various ways, including income levels, access to resources, and social exclusion, and can be influenced by factors such as unemployment, inequality, lack of education, and social and economic policies. Ultimately, poverty is a violation of human dignity and a major obstacle to achieving sustainable development and human well-being.
Source: SDPI
Pakistan’s efforts to reduce poverty are closely aligned with the United Nations’ Sustainable Development Goals (SDGs), particularly Goal 1, which aims to eradicate poverty in all its forms everywhere. Despite some progress, Pakistan still faces significant challenges in achieving this goal.
According to the World Bank, approximately 24% of Pakistan’s population lives below the poverty line, with rural areas being disproportionately affected. To address this issue, Pakistan has implemented various initiatives, including the Benazir Income Support Programme (BISP), which provides financial assistance to vulnerable households.
Achieving the SDGs, including Goal 1, requires a multi-faceted approach that addresses the root causes of poverty.
In Pakistan’s case, this involves improving access to education, healthcare, and economic opportunities, particularly for marginalised communities. The government has made efforts to increase investment in these areas, but more needs to be done to address the scale and complexity of the challenge. Moreover, Pakistan’s progress towards the SDGs is also contingent upon addressing broader structural issues, such as inequality, corruption, and climate change, which can exacerbate poverty and undermine development gains.
We all already aware of the fact that, Pakistan continues to grapple the significant poverty challenges, with approximately 24% of the population, or around 50 million people, living below the poverty line, according to the World Bank’s 2020 estimates. The poverty headcount ratio has declined marginally over the years, but the pace of reduction remains slow, and poverty remains a pervasive issue, particularly in rural areas where 30% of the population lives below the poverty line.
Furthermore, Pakistan’s poverty landscape is characterized by significant regional disparities, with provinces like Balochistan and Khyber Pakhtunkhwa exhibiting higher poverty rates than others, highlighting the need for targeted and nuanced policy interventions to address the complex and multifaceted nature of poverty in Pakistan.
Valuable lessons
China’s remarkable journey from being one of the poorest countries in the world to becoming the second-largest economy is a testament to its unwavering commitment to economic reform and development. In the 1970s, China was plagued by poverty, with over 80% of its population living below the poverty line. However, under the leadership of Deng Xiaoping, China embarked on a series of economic reforms, including the introduction of the Household Responsibility System, which allowed farmers to sell their surplus produce in the market, and the establishment of Special Economic Zones (SEZs), which attracted foreign investment and promoted export-led growth. These reforms helped China to achieve rapid economic growth, lift hundreds of millions of people out of poverty, and transform itself into a global economic powerhouse. Pakistan can draw valuable lessons from China’s experience in its own struggle against poverty. Like China, Pakistan needs to implement structural reforms to promote economic growth, invest in human capital, and improve governance. Pakistan can learn from China’s experience in establishing SEZs, promoting export-led growth, and encouraging foreign investment.
Additionally, Pakistan can benefit from China’s expertise in infrastructure development, particularly in the context of the China-Pakistan Economic Corridor (CPEC). By adopting a similar approach to economic development, Pakistan can accelerate its own growth trajectory, reduce poverty, and achieve sustainable development.
Pakistan has been striving to break the poverty cycle and achieve the Sustainable Development Goals (SDGs) by 2030. To accomplish this, Pakistan has been following China’s footsteps, which has successfully lifted millions of people out of poverty. One key area of collaboration is the China-Pakistan Economic Corridor (CPEC), a flagship project of China’s Belt and Road Initiative (BRI). CPEC aims to promote economic growth, create jobs, and improve infrastructure in Pakistan, ultimately contributing to poverty reduction. Through CPEC, Pakistan can benefit from China’s expertise in infrastructure development, industrialization, and technological advancement. In addition, the emerging blue economy of Pakistan is another area where China’s support can play a crucial role in breaking the poverty cycle. The blue economy encompasses various sectors, including fisheries, tourism, and maritime trade, which have the potential to create employment opportunities and stimulate economic growth. China’s investment in Pakistan’s ports, particularly Gwadar Port, can help increase trade and commerce, generating revenue and creating jobs. Moreover, Pakistan can learn from China’s experience in sustainable fishing practices, coastal zone management, and eco-tourism development. By leveraging these opportunities and following China’s model of poverty reduction, Pakistan can make significant progress in achieving the SDGs and breaking the poverty cycle.
Recommendation, way forward
Pakistan’s strategic location, with its 1,046 km coastline along the Arabian Sea, offers a unique opportunity to develop its blue economy, which can be a game-changer for the country’s economic growth and poverty reduction. China’s investment in Pakistan’s maritime sector, particularly in Gwadar Port, a key component of the China-Pakistan Economic Corridor (CPEC), can help Pakistan tap into the vast potential of the blue economy. This can enable Pakistan to become a major player in regional and global trade, creating employment opportunities, stimulating economic growth, and contributing to poverty reduction. Moreover, the growth of Pakistan’s blue economy can help reduce its dependence on traditional industries and promote economic diversification. To achieve this, Pakistan can learn from China’s experience in sustainable development, investing in renewable energy sources, implementing sustainable fishing practices, protecting marine biodiversity, and promoting eco-tourism. By adopting a sustainable and inclusive approach, Pakistan can ensure that the benefits of economic growth are shared equitably among all stakeholders so, there is a strong need to realize the fact that, Pakistan’s efforts to reduce poverty and achieve the Sustainable Development Goals (SDGs) are closely aligned with China’s successful model of poverty reduction. Through initiatives such as the China-Pakistan Economic Corridor (CPEC) and the development of its blue economy, Pakistan can tap into China’s expertise in infrastructure development, industrialization, and technological advancement. By adopting a sustainable and inclusive approach to economic development, Pakistan can break the poverty cycle, promote economic growth, and achieve sustainable development, ultimately improving the lives of millions of people and contributing to a more prosperous and equitable future so to attain the fruits of prosperity Pakistan must work hard to act as a quick leaner to learn from the China’s success in alleviating poverty, as 24.3% of its population still lives below the poverty line. Despite some progress, poverty remains a multidimensional issue, with people affected by drought, lack of clean water, unemployment, and poor health facilities.
To address this, Pakistan can adopt conditional cash transfer programs, like China’s, to control food scarcity among the poor. Targeted employment programmes, such as China’s social security initiative, can also be replicated to provide jobs in rural areas.
Additionally, Pakistan can implement health reforms, like low-cost insurance and free healthcare for the poor, and strengthen local government institutions to improve service delivery. Furthermore, institutional reforms, such as amending the National Finance Commission award, can help allocate funds more effectively. Finally, multi-targeting projects, like affordable housing and tree plantation initiatives, can provide affordable living and stimulate economic growth.
It is recommended that, poverty alleviation in Pakistan requires a multidimensional approach, as the issue is complex and affects people in various ways, including drought, lack of clean water, unemployment, and limited access to healthcare. Additionally, strengthening local government institutions and promoting collaboration between local and central government departments is crucial for addressing poverty. By adopting innovative methods and implementing tailor-made policies for poor segments, Pakistan can reduce poverty levels and improve the overall well-being of its citizens.
The author is from Faculty Department of H&SS, Bahria University Karachi