Rising food prices and poverty in Pakistan.

An upsurge in global food prices in 2008 led to significantly higher food prices across the developing world. Global commodity prices have since declined but still remain volatile, but at the same time local food prices remain high in many countries. This study examines the potential impacts of the rise in food prices on poverty-income based poverty and calorie-based poverty- focusing on Pakistan, and its rural and urban areas. For this purpose, we used HIES data collected in three waves 2005-06, 2007-08 and 2010-11. Price elasticities are computed using binary Logistic regression method. The study results show that price of wheat, rice, milk, meat, fruit, pulses appear to distinguish the status of a household. Price elasticities shows that urban households are hit harder than rural households in calorie-poverty model. Overall, rising food prices are likely to lead higher poverty in Pakistan, as the negative impact on net consumers outweighs the benefits to producers. Therefore, effective strategy for eliminating poverty is far more concerned with price increases. Safety net programs can be more effective, but geographic targeting and other investments to strengthen safety nets are necessary to ensure that fewer people are affected by future crises. Government policies oriented towards relieving the food price pressure on the Pakistani poor should aim at lowering the prices of wheat, rice, eggs, oil, milk, and chicken.

Estimation of poverty bounds for Pakistan using synthetic panel data.

Poverty is a big threat to prosperity in developing countries like Pakistan. Alleviating poverty needs concerted efforts including how to measure and analyze poverty. Therefore, this paper employs synthetic panel technique and uses repeated cross-sections household survey dataset (Household Integrated and Economic Survey (HIES)) of Pakistan for 2010-11 and 2015-16, to derive poverty bounds for Pakistan. The findings of the paper suggest that 17% of population still remains in poverty in 2015-16 as they were in 2010-11. They don't move in or out of poverty. In the same periods 19% population affected by poverty. The 2.5% poor's of 2010-11 moves out of poverty in 2015-16. This constitutes the first attempt to provide an insight into poverty dynamics in Pakistan using the available survey data.