IMPACT OF INFLATION ON POVERTY AND UNEMPLOYMENT IN PAKISTAN

Abstract

Pakistan is a developing country with a number of challenges on board out of which poverty is considered as a matter of great concern for Pakistan. Poverty has always been a bone of contention among the policy makers and Government. From the last 20 years a sharp increase in poverty level has been witnessed. The increase in poverty level has a number of factors for instance: Price hike, increase in inflation and prices, Increase in population, increase in Interest rates etc. Poverty is not only a major issue for Government but it has now become a national issue as increase in poverty affects other things as well for instance: Crime rate, Social issues, Suicides, selling kids, Prostitution etc. These are some of the problem which disturbs the whole image as well as the development process. According to economist the main issue is unequal distribution of wealth and unemployment. The research particularly focuses on the issues for poverty with an aim to find out ways of alleviating it. The research is based on the previous data of economic variables from 2006 to 2014. The data is analyzed with the help of SPSS software whereas findings from the research suggests some important recommendations i.e. Jobs creation on Government level, increase in Microfinance activity, free education, lower interest rates to graduates to boost up economic process and to avoid any brain drain.