Declining Poverty in a drowning economy: A Comprehensive Approach
Poverty remains a significant challenge in Pakistan, affecting millions of people (Nearly,40% of Pakistan population ).Factors like, lack of access to basic services , low literacy rates and political instability contribute to the problem. In this article, we’ll dive deeper into how government authorities, communities, and individuals can play their crucial parts for combating poverty.
Dealing with poverty in wake of political instability and IMF
Political instability can significantly hinder the effective application of policies. Constant changes in leadership, shifts in political priorities, and lack of consensus can lead to uncertainty and inconsistency in policy implementation. This can undermine long-term planning, erode public trust, and impede progress on critical issues such as poverty.
Under the strict IMF agreement, to bring the country out of the depths of poverty Pakistan needs a strong leadership to implement stronger policies.
Most important, governments can do a lot to reduce the pro-cyclical nature of their fiscal policies by saving rather than spending windfalls following positive shocks and ideally using those savings as a buffer for expenditures against negative shocks. Governments can use progressive taxation, where higher-income individuals pay a higher percentage of their income in taxes, to redistribute wealth and provide social services to those in need. Additionally, targeted tax credits or deductions can help alleviate the financial burden on low-income individuals and families. The other thing that can be done is to create a trusting environment and draw the attention of foreign and local investors in infrastructures .Moreover, a trustworthy government that can boost the morale of the public is a high need to get through the critical situation.
Pull-development Vs push development approach
The pull development strategy focuses on catalyzing economic growth and job creation to draw individuals out of poverty. Central to this approach is the promotion of entrepreneurship, investment in infrastructure, and the facilitation of access to markets and resources. By stimulating economic opportunities, particularly in sectors with high growth potential, such as renewable energy and technology, the pull development strategy empowers individuals to break free from the shackles of poverty and contribute to the revitalization of the economy.
Conversely, the push development strategy concentrates on providing immediate relief and support to vulnerable populations grappling with the harsh realities of poverty. This approach entails initiatives such as access to healthcare, education, and social welfare programs, aimed at addressing the basic needs of impoverished communities while providing immediate relief to people , it is high time to take initiatives that will reach to root causes and will foster long term sustainable balance .
Khushhali Microfinance Bank in Pakistan.
Khushhali Microfinance Bank was established with the goal of providing financial services to low-income individuals and small businesses in Pakistan, particularly in rural and underserved areas.
Through its microfinance initiatives, Khushhali provides small loans to entrepreneurs and small business owners who lack access to traditional banking services. These loans are typically used to start or expand businesses, purchase equipment, or invest in agricultural activities.
By offering financial inclusion and support to those at the bottom of the economic pyramid, Khushhali Microfinance Bank empowers individuals to improve their livelihoods, generate income, and ultimately lift themselves out of poverty. This pull development strategy not only addresses immediate financial needs but also fosters entrepreneurship and economic resilience within local communities.
Secure and prosperous future
Employing a multifaceted approach to combat child labor involves conducting surveys to engage with affected families, providing essential resources, and empowering parents, thus contributing significantly to poverty alleviation efforts. Through surveys, comprehensive insights into the root causes of child labor, such as economic hardship or lack of educational opportunities, can be garnered. The new study in Harvard says;
“There is a casual relationship between the country you live in as a child and the income you earn as an adult.”
By addressing these underlying factors and providing essentials such as food, healthcare, and education, immediate needs are met, thus laying the groundwork for sustainable change.
Learning and training hubs
Additionally, empowering parents through skill-building initiatives, vocational training, or access to microfinance opportunities, help those exploring opportunities provided by the world, earning in international currencies by online means equips them with the means to secure stable livelihoods, breaking the cycle of poverty and reducing reliance on child labor. This holistic approach not only safeguards the rights and well-being of children but also fosters long-term socioeconomic development within communities.
Building relationships across different socioeconomic classes
Can play a crucial role in eradicating poverty. By fostering connections and understanding between people from diverse backgrounds, individuals can gain valuable insights into the challenges faced by those living in poverty. This understanding can lead to more effective and compassionate support systems, including mentorship programs, skill-sharing initiatives, and community-based projects aimed at addressing systemic issues. Additionally, building bridges across class divides can promote social cohesion and empathy, creating a more inclusive society where everyone has the opportunity to thrive.
Conclusion
In conclusion, addressing poverty in Pakistan requires a comprehensive approach involving multiple stakeholders. Political instability and IMF interventions pose challenges, highlighting the need for strong leadership and prudent fiscal policies. By saving windfalls, implementing progressive taxation, and attracting investments, governments can reduce poverty and create a more prosperous future for all.
Pull development strategies, like promoting entrepreneurship and investing in infrastructure, can stimulate economic growth and create jobs, while push development efforts provide immediate relief and support to vulnerable populations. Initiatives like Khushhali Microfinance Bank empower individuals through financial inclusion, Combating child labor involves addressing root causes and providing essential resources, alongside empowering parents through skill-building and access to opportunities.
While fostering relationships across socioeconomic classes promotes understanding and empathy.
