Pakistani poverty level lower than India

The number of poor is 73.6 percent of the total population in Pakistan, on the basis of two-dollar a day purchasing power parity (PPP), which is less than India's 80 percent, claimed Dr Ashfaque Hasan Khan, advisor to Finance Ministry.
Addressing a post-budget seminar, organised by Press Information Department (PID) at a local hotel on Friday, he said that the 'PPP' formula was prepared by international financial institutions to ascertain the poverty position across the world. Initially, the 'PPP' was based on one-dollar-a-day and, on the basis of initial formula, poverty in Pakistan currently stands at 17 percent of the population.
He said that Pakistan was one of emerging economies in Asia. "Today, Pakistan is clubbed with high-growth countries, like China, India and Vietnam," he said.
Soon after the speeches of other speakers, the participants raised questions on government's failure to ensure electricity supply across the country. Dr Ashfaque defended power load shedding by saying that high economic growth had actually destabilised the demand and supply position.
The power demand was projected to grow by just 3 percent in early 1990s. In late 1990s, the new projections were given and it was stated that power demand would grow by around 6 percent. However, the GDP growth at more than 7 percent for five consecutive years had pushed the power demand by over and above the government projections. This was one of the major factors due to which the country has been facing power shortage for the last year, said the advisor as he was not ready to accept that the government was actually responsible for the present power crisis.
The advisor seemed clueless when a participant of the seminar said that farmers would operate the tube-wells when electricity is available. The power load shedding has actually deprived the farmers of availing government facility of providing electricity to agriculture tube-wells on subsidised rates.
Coming back to 2007-08 budget, he said that certain things, happening during last two years or so, had really surprised the economic managers of the country. The investment has reached 23 percent of the GDP in the current fiscal year, which has been really surprising, he said.
He said that the government had some more money and, therefore, it had increased spending on poor in the 2007-08 budget. Budget is actually the continuation of the economic policies. This year, the government had more money and it decided to give relief to the common man. He said that utility stores outlets would be set up in each tehsil of the country.
Tanveer Ali Agha, Secretary, Finance, said that Pakistan was out of vicious cycle. "Pakistan is the fastest growing economies in Asia. Mere economic growth, however, is insufficient and the government requires formulation of policies so that more and more people take benefit of this growth. The budget 2007-08 is a good step in that direction," he said.
He said that if CBR was able to achieve the revenue target during next fiscal year, the tax-to-GDP ratio would reach 10.3 percent. Dr Abdul Qayyum of Pakistan Institute of Development Economics (Pide) called for proper revival of Monetary & Fiscal Policy Board (MFPB).
"After the revival of the Board, which is inactive, in my view, would give guidelines to the government on containing inflation that is becoming bigger and bigger challenge for the government," he said.
He said that the 2007- 08 budget was inclined to welfare, as additional tax burden in the new budget goes to around Rs 70 billion, while the relief package is of around Rs 100 billion.