Analysis of Poverty Determinants in Pakistan: Insights from Household-Level Data

Abstract

The study identifies different household-level determinants of poverty
in Pakistan. The study makes use of PSLM (Pakistan Social and Living
Standard Measurement) data for the year 2019–2020. By evaluating the
Logit and Probit Regression model, this study identifies economic
factors that contribute to poverty. According to the findings, poverty is
positively correlated with the dependence ratio and the number of people
with disabilities. In addition, households with literate household heads
have lower rates of poverty. Similarly, household heads, urban residents
are more likely to have lower levels of poverty than rural residents.
Moreover, Sindh has the highest level of poverty whereas KP has the
lowest. Therefore, poverty may be decreased by offering free education,
job opportunities, and good planning for population expansion. Because
family size has a direct impact on dependence ratio, governmental efforts
to reduce household size must be encouraged. In a similar manner,
rehabilitation programs should be created, and monthly transfer
payments should be provided to people with disabilities. Therefore,
initiatives must be taken to reduce the disparities in the country's
infrastructure, health, and education.