Modern Tools for Poverty Analysis Introduced at National Training Workshop | Federal Minister Prof. Ahsan Iqbal Emphasizes Data-Driven Poverty Reduction at Training Workshop

29 November 2024

Islamabad: Federal Minister for Planning, Development & Special Initiatives, Prof. Ahsan Iqbal, addressed the Poverty Estimation Training Series organized by the Planning Ministry’s SDGs Unit in collaboration with UNICEF Pakistan and the World Bank Pakistan. The initiative is aimed at building the capacity of federal and provincial stakeholders in poverty estimation through hands-on training using advanced datasets like the Household Integrated Economic Survey (HIES) and Pakistan Social and Living Standards Measurement (PSLM).

In his opening remarks, Prof. Ahsan Iqbal emphasized the critical role of accurate data and robust planning in poverty alleviation and sustainable development. “Effective development planning in a country like Pakistan hinges on scientific and data-driven methodologies. Misguided allocations due to inadequate datasets or poor management not only undermine efficiency but also threaten national progress,” he stated. He underscored the role of precise poverty estimation in ensuring equitable resource distribution and targeted policymaking.

Reflecting on fiscal challenges, the Minister shared stark statistics. Between 2013 and 2018, Pakistan’s development budget grew from Rs. 340 billion to Rs. 1,000 billion, marking a nearly threefold increase. However, by 2022, it had dropped to Rs. 750 billion, a regression attributed to fiscal mismanagement. “In today’s terms, the Rs. 1,000 billion from 2018 would be equivalent to only Rs. 400-500 billion in value, given inflation and rising costs. With a rapidly growing population, the resource pressure has intensified, demanding more strategic planning,” he remarked.

Highlighting the broader economic context, he stated, “While we have made strides in economic recovery—reflected in export growth, rising remittances, and improved stock market performance—our productivity levels remain alarmingly low compared to global benchmarks. Strengthening our tax culture is imperative; only salaried individuals bear the brunt of taxes, while others evade this responsibility, costing the country billions.”
Prof. Ahsan Iqbal called for a unified national focus on economic development, urging stakeholders to prioritize data-backed decisions over political polarization. “Pakistan cannot afford political crises or instability. Development in the 21st century hinges on economic strength. Nations that thrive today have transcended internal conflicts to align themselves with clear economic goals,” he said.

He further urged participants to become “Champions of Change,” leveraging their training to champion policies that address poverty, hunger, and inequality. He reminded the audience of the upcoming centenary of Pakistan’s independence, challenging them to ensure that future generations inherit a prosperous and self-reliant nation. “If we fail to match or surpass our neighboring countries in per capita income by 2047, we risk losing the historical race. This is the time to unite under an economic agenda and work collectively towards a strong and resilient Pakistan,” he added.

The Poverty Estimation Training Series aims to enhance participants’ capacity in handling and analyzing large survey datasets, focusing on HIES and PSLM. The objective is also to equip officials with the knowledge to measure multidimensional and monetary poverty using advanced methodologies, including the Cost of Basic Needs (CBN) approach and the Alkire-Foster method.

Concluding his address, Prof. Ahsan Iqbal reaffirmed the government’s resolve to eradicate poverty and inequality through strategic planning and capacity building. “The road to a prosperous Pakistan lies in transforming our challenges into opportunities. Together, we can build a nation where economic strength guarantees sovereignty, respect, and security for all,” he said.