Pakistan is a country of contrasts, where a small fraction of the population enjoys a lavish lifestyle while the majority struggles to make ends meet. According to the World Bank, Pakistan has the second highest income inequality in South Asia, with a Gini coefficient of 33.5 in 2015. The elite class of Pakistan, which comprises of the political, military, bureaucratic, and business elites, has a disproportionate share of the country's wealth, power, and resources. They benefit from the patronage networks, corruption, tax evasion, and rent-seeking that plague the Pakistani state and society. The elite class also influences the policies and institutions that affect the development and welfare of the poor and marginalized segments of the population.
The elite class of Pakistan has a direct and indirect impact on the poverty situation in the country. On the one hand, the elite class consumes a large portion of the national income and assets, leaving little for the public goods and services that are essential for the poor. For instance, the elite class pays very low taxes, depriving the state of the revenues needed to invest in health, education, infrastructure, and social protection. According to the Federal Board of Revenue, only 2.5 million people out of a population of 220 million filed income tax returns in 2019, and only 1.5 million actually paid any tax. The FBR's most recent figures closely resemble those from 2019. The elite class also exploits the natural resources of the country, such as land, water, minerals, and forests, without paying fair compensation or ensuring environmental sustainability. The elite class also benefits from the subsidies and concessions that are meant to support the poor, such as cheap electricity, gas, and fertilizers.
On the other hand, the elite class shapes the political and economic institutions that determine the opportunities and outcomes for the poor. The elite class controls the major political parties, the parliament, the judiciary, the bureaucracy, and the media, and uses them to protect and promote their interests. The elite class also influences the policies and laws that affect the distribution of income and wealth, such as the tax system, the land reforms, the labour regulations, and the trade policies. The elite class also undermines the accountability and transparency of the state and society, by indulging in corruption, nepotism, and clientelism. The elite class also resists the reforms and innovations that could challenge their status quo, such as the devolution of power, the empowerment of local governments, the participation of civil society, and the promotion of human rights and democracy.
The elite class of Pakistan is a major obstacle to the eradication of poverty and the achievement of inclusive and sustainable development in the country. The elite class not only hoards the wealth and resources of the country, but also manipulates the institutions and policies that affect the lives and livelihoods of the poor. The elite class also perpetuates the social and cultural norms and values that justify and legitimize their dominance and privilege. The elite class needs to be challenged and transformed, by creating a more democratic, accountable, and responsive state and society, by fostering a more equitable and progressive tax system, by implementing a more comprehensive and effective social protection system, and by enhancing a more participatory and inclusive development process.
Pakistan's economy has been growing at an average rate of 4.5% per year since 1947, which is lower than the regional and global averages. Moreover, the growth has been uneven and volatile, with frequent shocks and crises due to political instability, security challenges, natural disasters, and external factors. The growth has also been highly unequal, with the richest 10% of the population receiving 27.6% of the income, while the poorest 10% receiving only 4.1%, according to the World Bank.
Pakistan's population has increased from 33 million in 1951 to 220 million in 2020, making it the fifth most populous country in the world. The population growth rate is 2.0% per year, which is higher than the regional and global averages. The high population growth puts pressure on the limited resources and services and reduces the per capita income and consumption. Moreover, the high dependency ratio, which is the ratio of dependents (children and elderly) to the working-age population, reduces the savings and investments, and increases the fiscal burden on the state and society.
Pakistan ranks 154th out of 189 countries in the Human Development Index, which measures the achievements in health, education, and living standards. According to the United Nations Development Programme, 38.3% of Pakistan's population lives in multidimensional poverty, which means that they are deprived of at least one-third of the indicators related to health, education, and living standards. Moreover, certain groups and regions are more vulnerable and marginalized than others, such as women, children, minorities, rural areas, and conflict-affected areas. These groups and regions face multiple forms of discrimination and exclusion, such as lack of access to basic services, opportunities, and rights, and exposure to violence and insecurity.
Pakistan needs to invest more in health, education, and social protection, and ensure that these services are accessible, affordable, and of good quality for all, especially the poor and marginalized groups. Pakistan also needs to promote the empowerment and participation of women, children, minorities, and other disadvantaged groups in decision-making and governance, and protect their rights and dignity. Furthermore, Pakistan needs to address the root causes and consequences of violence and insecurity and foster a culture of peace and tolerance. The state also needs to harness the potential of its large youth population, which can be a source of demographic dividend, by providing them with quality education, skills, and jobs, and enabling them to contribute to the economic and social development of the country.
Pakistan’s long-term policy needs to diversify and modernize its economy and increase its productivity and competitiveness in the regional and global markets. This can be done by investing in infrastructure, technology, innovation, and industry, and promoting the development of the agricultural and service sectors, which employ most of the workforce. All institutions must work together to enhance fiscal and monetary policies, and to reduce debt and deficits that hamper the growth prospects. Moreover, Pakistan needs to ensure that the benefits of growth are shared equitably among all segments of the society, and that the poor and vulnerable are protected from the adverse impacts of economic shocks and crises.
