Population and Poverty Alleviation in Pakistan: An Aggregated and Disaggregated Analysis

Abstract

A high Population growth rate is always considered a big problem in developing countries.  The present study aims to simultaneously work on population and poverty in Pakistan over the period 1975 to 2015 by using the ARDL technique. The main results of the poverty model demonstrate that there is a positive association between poverty headcount ratio, population, taxes, GDP, and unemployment while an increase in trade openness, foreign direct investment, and literacy rate would decrease the poverty level. On the other hand, findings on the determinants of population explore that the effect of an increase in the inflation rate and literacy rate is negative on the population growth rate while the unemployment rate, remittances, foreign direct investment, and taxes indicate a positive relationship with the population growth rate. Findings of population dynamics and poverty encapsulate that a high birth rate increases poverty while a high fertility rate and death rates reduce the poverty in Pakistan. The study has suggested that poverty alleviation programs may target such areas which are deprived of social economic and educational betterment along with health facilities provision.  The budget for the education and health sectors of Pakistan may be increased with special importance given to the rural areas.