Government considering changing poverty measurement yardstick

Political instability, economic crises and climate shocks damaged development

Islamabad: Government is considering changing current methodology of measuring poverty to review growing poverty in Pakistan and impacts of climate changes on welfare of people.

In this regard, consultation was held between Ministry of Planning and Oxford University's institution Oxford Poverty and Human Development Initiative (OPHI), in which proposals to align Multidimensional Poverty Index (MPI) with modern requirements were discussed.

Under proposed changes, in poverty measurement, along with current indicators of health, education and standard of living, factors like population pressure, climate disasters, insecurity, youth deprivations, gender inequality, lack of access to digital facilities, malnutrition, stunting in children and migration will also be considered for inclusion.

Federal Minister for Planning Ahsan Iqbal, while addressing ceremony of signing memorandum of understanding with OPHI, said that political instability, lack of continuity in policies, economic crises and climate shocks have damaged previous fruits of Pakistan's development, to reduce poverty it is necessary to restore investment in social sectors, empower local governments and determine national development priorities on basis of authentic evidence related to poverty.

According to Ministry of Planning, in new review of poverty measurement, data to be obtained from Pakistan Social and Living Standards Measurement Survey 2026-27 will be utilized, while for inclusion of new indicators, reliable data and authentic methodology will be given basic importance.

Minister for Planning included political instability, economic crisis, lack of continuity in development policies, Corona epidemic and devastating floods among reasons for increase in poverty. He warned that if Pakistan's economic growth rate remains less than population growth, difficulties in creating employment opportunities, reducing poverty and providing employment to new generation of workers may increase further.

An important part of proposed cooperation between Ministry of Planning and OPHI is to analyze multidimensional poverty at level of national and provincial assembly constituencies, for this purpose it is proposed to use data obtained from 2023 census and housing count.

According to officials, Pakistan Bureau of Statistics has prepared poverty analysis at constituency level, however government has not taken final decision to bring it before public in view of its possible political impacts.

Important question for experts will be how not only better identification of deprived populations will be possible by including new factors in poverty measurement, but how practical steps will be ensured to deliver available development resources to them.