Pakistan : Promoting Rural Growth and Poverty Reduction

This report shows that after a decade of
moderate growth but little or no long term change in rural
poverty in Pakistan, agricultural output, rural incomes,
rural poverty and social welfare indicators all showed
marked improvements between 2001-02 and 2004-05. However,
longer term trends suggest there is little reason for
complacency. The agricultural GDP per capita growth rate
(1999- 2000 to 2004-05) was only 0.3 percent per year; rural
poverty rates in 2004-05 are still at levels that
approximate those of the 1990s; and social welfare
indicators in Pakistan remain significantly below those of
other countries in south Asia. Moreover, problems related to
timing and availability of water for irrigation, inadequate
rural infrastructure, a skewed distribution of assets, and
low levels of health and education continue to slow the
progress of economic growth and poverty reduction.
Nonetheless, Pakistan has made important strides in the last
several years to promote rural growth and poverty reduction.
The study concludes that a comprehensive rural growth and
poverty reduction strategy is needed, predicated on four
main pillars: 1) Promoting efficient and sustainable
agricultural growth to raise incomes of small farmers and to
generate growth linkages in the rural non-farm economy; 2)
Creating an enabling environment for the rural non-farm
sector to enhance employment and incomes, and improving
rural public-service delivery in infrastructure, health,
education and population to serve as a foundation for growth
and to increase household welfare; 3) Improving the
effectiveness and governance of rural institutions through
the decentralization and strengthening of local demand for
enhanced accountability as well as through more proactive
use of public-private partnerships; 4) Empowering the poor
and protecting the most vulnerable through social
mobilization, safety nets and facilitating access to
productive assets for income generating activities.