Growth and Poverty in Pakistan: Implications for Governance

Arshaed H. Bhatti


According to the Economic Surveys, Pakistan’s real GDP has
grown at an average annual rate of 6.8 percent in the 1960s, 4.8 percent
in the 1970s, 6.5 percent in the 1980s and 4.7 percent in the 1990s.
However, that did not seem to have mitigated poverty as parallel to this
growth the number of poor also kept swelling. Although different
estimates put number of poor in Pakistan around 50 million, the actual
could be more [Ahmad (2001)]. The average growth rates in the first
halfcentury of Pakistan have been around 2 percent [Hasan (1997)]. It is
pertinent to state that this discussion paper is not an attempt to
challenge the figures either of the growth rates or the numbers of the
poor in Pakistan. This is rather an attempt to understand the
correlation of governance with growth on one hand and poverty on the
other. It offers conceptual analysis of the concepts and their
respective interpretation, explanation, application and ensuing

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