Poverty is an internationally recognised issue. Its reduction is a key to curb terrorism and improve the law and order situation. Poverty deepens despondence and malaise due to shrinking income and sharp rise in cost of living. It compelled the frustrated elements not to desist from selling their body organs like kidney. Easy terms credit facilities and crops market security would increase agricultural productivity and hence alleviate poverty, hunger, protect environment and curtail the influx of population to urban centres. Agriculture is the backbone of Pakistan’s economy and a traditional source of income/employment. Therefore social safety nets for the poor farmers in particular is essential.

Major cities in Pakistan are confronted with transport, water supply and electricity problems. Social sector delivery system is not so efficient. Epidemics are spread in urban areas due to breakdown of sanitation and sewerage systems. Individuals of bonded labour in farms and brick-kilns in particular sell their labour and freedom. Foreign high-tech but biased media has further aggravated the situation. The main cause of trade in human organs is a manifestation of high degree poverty. Limited sources of employment for one or other reason created a vicious circle. The UNDP in its report for 2005 had placed Pakistan at 135 out 177 countries. Pakistan is on a road of tremendous economic growth. Widespread poverty still is the daunting challenge. The nexus between poverty, unemployment and rise in suicide attacks is fairly accepted. Young men caught into crime when they failed to have any job opportunity. The World Bank in 2003 had defined poverty "the inability to retain a minimal standard of living measured in terms of basic consumption needs of some income required for satisfying them".

The post 9/11 time has greatly contributed to rise in poverty and criminal activities. The waves of vulnerability have badly affected the creative and innovative thinking. Trickle-down effect of government economic growth takes time to reach the lower strata. Government is determining to tackle the poverty and unemployment problems through accelerated industrialisation. During inaugural ceremony of Sundar Industrial Estate near Lahore on 16th February 2007, the President stated, "public sector should formulate the policies and facilitate the private sector in strengthening the industrial base". Government policy is to encourage public-private partnership. The purposes of the strategy aimed at new employment opportunities and elimination of poverty and curb the criminalisation in society. The President stressed for diversification of industrial base and development of (i) Small and Medium Enterprises; (ii) agri-business; (iii) promotion of livestock in Cholistan and Balochistan; and (iv) synergy between industry and education to produce highly qualified engineers of international standard Engineering sector accounts for 61 per cent of the world trade.

Islamic ideology was/is the basic theme for Pakistan ‘s making to protect and promote people’s social and economic rights. The UN Universal Declaration on Human Rights duly emphasised the right to work. Pakistan’s constitutions- 1956, 1962 and 1973 inserted chapter on "Directive Principles of State Policy (1956) and Principles of Policy (1962 &1973). Execution of Principles of Policy would, however, subject to availability of resources. In March last year government’s provisional poverty estimates had shown reduction of poverty from 32.1 per cent in 2001 to 25 per cent in 2005. Some people refer to increased unemployment, under-employment and inflationary pressure in food items and energy in particular that badly hurt the poor and the middle class. Growing economic inequities is on the rise. Albeit development expenditure in public sector is increased from Rs70 billion in 1990 to Rs415 billion in 2006. Rural electrification and education programme have brought sea changes in lives. How many people have access or financial capability to avail the social amenities even in urban areas is the moot question?

Notable spending in education, health and infrastructure gave boost to social and economic development. Government plan for effective tax system is to ensure sustainable development and alleviate poverty. CBR has devised 10 years vision to enhance the current tax to GDP ratio from 9.2 per cent to 14.2 per cent, Chairman CBR revealed on 23rd February. For this purpose the revenue base was being changed to ensure fast track economic uplift and to reduce the tax burden on low-income people. Tax target under the new vision is 3-4 trillion rupees against existing 835 billion rupees. In modern times, the poverty level could also be gauged in terms of per capita calories as well. Experts disputed the criterion, nonetheless. In the aftermath of signing of Millennium Declaration in 2001 by 189 states to highlight the reality of absolute poverty. And a threshold of a minimum requirement for living was set at one dollar a day. Pakistan like other developing countries developed local index equivalent to minimum requirement of calories in the context of their local conditions. UNDP included shelter, clean water, sanitation, health and education and other households’ expenditure as a minimum criterion for the well-being of a person. Professor Izzuddin Pal termed the calories based index an instrument of neo-liberal approach that emphasised on confirmation and reconfirmation of the trickle-down process of poverty reduction.

Poverty alleviation in real terms could be gauged through narrowing down the gape between the haves and have-nots. Knowledge about poverty reduction should be improved. Recognised it a "core issue" and its data compilation would greatly helpful. The government has set a goal of one million households to be reached by micro-credit institutions by end 2007. Government’s microfinance programme covers 800,000 families to make a dent in poverty. The step is a move from traditional reliance on NGOs and a handful of banks to low income creditors. Under the Microfinance Institutions Ordinance 2001 and subsequent laws have provided the legal framework for the licensing regulation and supervision of the establishment and operation of such banks. Reportedly, six microfinance banks, 25 NGOs 5 or so Rural Support Programmes and about 5 commercial financial institutions are also giving small loans to ensure a greater outreach. Initially, the government has set up four funds of Rs2.5 billion. Khushhali Bank is the largest micro-credit provider with a loan portfolio of Rs1.9 billion. It is satisfying that National Bank of Pakistan under Karobar Scheme has also offered assistance to 1100 unemployed persons since its launch in October 2006. The bank has planned expansion in the number to 1.8 million jobless in next five years through loan amount of Rs105 billions. The scheme would be extensively launched from 31st March through 1000 branch network. Unemployed between 18-45 years of age are being offered financial assistance for (i) utility store under a franchise; (ii) a mobile general store; (iii) transport; (iv) PCO, and (v) a tele-centre.