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Regional Inequalities

Regional Inequalities . By Shahid Kardar 24 April, 2008. Introduction. Although inter provincial disparities with respect to household poverty marginal, not as sharp as say in India, but human development indicators distinctly better in Punjab Does data capture recent changes ?.

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Regional Inequalities

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  1. Regional Inequalities By Shahid Kardar 24 April, 2008

  2. Introduction • Although inter provincial disparities with respect to household poverty marginal, not as sharp as say in India, but human development indicators distinctly better in Punjab • Does data capture recent changes ?

  3. Incidence of Poverty by Province Source: Cheema, Iftikhar Ahmad. A Profile of Poverty in Pakistan

  4. Incidence of Poverty & Contribution to Total Poverty by Province, 2001 Source: Cheema, Iftikhar Ahmad. A Profile of Poverty in Pakistan

  5. Deprivation Level Across Provinces 2004-05 (% of Districts) Source : Social Policy & Development Center 2007

  6. Index of Multiple Deprivation (IMD) Source:Jamal,Haroon and Amir Jahan Khan. Indices of Multiple Deprivations 2005.

  7. Index of Multiple Deprivation (IMD) ( Contd.) Source:Jamal,Haroon and Amir Jahan Khan. Indices of Multiple Deprivations 2005.

  8. Education Source : Data compiled from PIHS & PSLM

  9. Education ( Contd.) Source : Data compiled from PIHS & PSLM

  10. Education (Contd.) Source : Data compiled from PIHS & PSLM

  11. Health Indicators Source : Data compiled from PIHS & PSLM

  12. Health Indicators ( Contd.) Source : Data compiled from PIHS & PSLM

  13. Housing, Water Supply & Sanitation Source : Data compiled from PIHS & PSLM

  14. Real per capita household expenditure of Rural Households- Punjab. Real per capita household expenditure of Rural Households - Sindh. Real per capita household expenditure of Rural Households- Sindh. Real per capita household expenditure of Rural poor households - Punjab. Source : World Bank. Pakistan Promoting Rural Growth and Poverty Reduction

  15. Real per capita household expenditure of Rural Households- NWFP Real per capita household expenditure of Rural Households- Balochistan Real per capita household expenditure of Rural Households- NWFP Real per capita household expenditure of Rural Households- Balochistan Source : World Bank. Pakistan Promoting Rural Growth and Poverty Reduction

  16. Annual non farm Income Shares by Expenditure Quintiles in Rural Pakistan in (2001-02 Rs) Source : World Bank. Pakistan Promoting Rural Growth and Poverty Reduction

  17. Quality of, & Access to Infrastructure Source : World Bank. Pakistan Promoting Rural Growth and Poverty Reduction

  18. Firms Identifying Various Investment Climate as Constraint (%) Source : World Bank. Pakistan Promoting Rural Growth and Poverty Reduction

  19. Access to Markets Source : World Bank. Pakistan Promoting Rural Growth and Poverty Reduction

  20. Major Rural & Small Town Investment Climate Constraints Source : World Bank. Pakistan Promoting Rural Growth and Poverty Reduction

  21. Widening Differentials • Sharp widening of Differentials, especially in last 5-6 years • Reasons for growing disparities – advantage to Punjab: • Transfers under NFC Award continue to favour it; • No Coalition Government & better quality governance; • More competent bureaucracy;

  22. Widening Differentials (Contd.) • Nature of growth-more skill intensive; financial sector, telecommunications, oil & gas, assemblers of motor cars, motor cycles and tractors and associated vendor industry; • Historical advantage in education and skill development; • TEVTA and PVTC better at development of low level skills (construction sector, computer operators, electricians, mechanics, welders, plumbers etc.)

  23. Widening Differentials (Contd.) • Managerial and Technical skill development in Private institutions for higher education – LUMS, LSE, BNU, FC College and GCU, providing private sector with managerial and related skills. • Better public sector institutions – Quaid-e-Azam University, Punjab University, Medical Colleges (KEMC, FJ, Allama Iqbal,Nishtar) Engineering Universities (UET, NUST and Cadet Colleges)

  24. Widening Differentials (Contd.) • Agriculture sector and even small farmers benefitted from: • Good weather; • Better trading opportunities from increase in prices of crops; • Farm to market roads (and motor way connection for Citrus growers);

  25. Widening Differentials (Contd.) • Water availability through better management of irrigation systems; • Credit to farmers by formal banking system; • More equitable land holdings, especially in central Punjab; and • Overall Economic Growth.

  26. Widening Differentials (Contd.) • Improved Infrastructure: • 26,000 km of roads in 1999-2000, now > than 70,000km; • New industrial estates , for example: Sundar and upgrading of existing ones. • Shifting of investment from Sindh into Punjab after disturbances in Karachi (process started in late 1980’s)

  27. Widening Differentials (Contd.) • Due to more reform minded governments since the late 1990s donors keen to engage and provide funding (>than Rs.10 billion a year for last 3-4 years) • Disparity gap to increase, especially as agricultural subsidies get phased out internationally under WTO

  28. Recommendations • Revise Constitution to give provinces control over resources below the ground-oil and gas and major minerals • Revise NFC Award to also factor in area (for minimum cost of service provision), backwardness, revenue collection • Fiscal & administrative decentralization • Focused education, technical training & infrastructure dev.programmes for NWFP & Balochistan- with fiscal incentives

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