Multi-dimensional income inequality in Pakistan Online publication date: Fri, 29-Aug-2014
by Abdul Hamid; Naeem Akram
International Journal of Economics and Business Research (IJEBR), Vol. 8, No. 1, 2014
Abstract: Inequality along with poverty has been a serious challenge for most of the developing countries. There have been several historical, political, social and economic dimensions of the inequalities. The present study provides a detailed analysis of various income dimensions of inequality at national and provincial level in Pakistan. This paper also provides a detailed analysis of the causes and consequences of these inequalities. The analysis shows that the gaps between haves and have-nots is widening. The distributional inequality has not been given much significance in Pakistan and the distributional policy measures like direct taxes have been weak. As a result, the direct tax to GDP ratio could not be increased over 10% in the country. The study finds that income inequalities have increased during 2001 to 2008. As in 2001-02, GINI coefficient was calculated as 0.27 and in 2007-08, it reached to 0.29. It has also been observed that inequality is highest in Sindh followed by Punjab, Khyber Paktunkawa (KPK) and Baluchistan provinces.
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