Abstract:
Pakistan is an under developed country facing economic downturns which directly and
indirectly give birth to poverty. Eradication of poverty is very important as its presence
causes hurdles in the path of growing economy. Among numerous factors causing poverty,
this research has analyzed few factors i.e. low literacy rate, population pressure, inflation and
unemployment. Hypotheses were tested using 10 years data i.e. from 2001 to 2010. Multiple
regression and simple regression was used which concluded that all the variables have
significant relationship whether when taken as a model or individually. Beta values showed
that population pressure and unemployment are positively associated where as Inflation and
low literacy rate are negatively associated with poverty. The inverse relationship of inflation
and low literacy rate with poverty can be due to the cause that limited data 10 years were
analyzed and in spite of increasing inflation and low literacy rate some other factors are
influencing which has result in increase in poverty. However in general observation, all the
independent variables studied are positively associated with poverty. The Government of
Pakistan is responsible to take effective measures for eradication of root causes of poverty so
that the country can prosper
