Assessing Modified Multidimensional Poverty Index and its Demographic Correlates in Khyber Pakhtunkhwa

Abstract

Poverty is multidimensional concept. This study specially focuses on the poverty rate in the province of Khyber Pakhtunkhwa. For this purpose, we measure multidimensional poverty by using Alikire- Foster methodology and constructed extended multi-dimensional poverty index motivated by the fact that poverty is not only related to income and expenditure but also with other capabilities and functionalities such as education, health, women empowerment, and environment. We find that the division of Bannu is the poorest division of the province. The second poorest division of the province is the Malakand division which is home to some of the geographically disconnected areas of the province. Moreover, the divisions of Peshawar and Mardan have the smallest ratio of poor people in the province. Finally, from the demographic correlates of MDPI, the dependency ratio has direct impact on the MDPI. This calls for rural areas specific policy interventions to reduce the poverty on multi dimensions level.