Islamic Research and Training Istitute (IRTI), Islamic Development Bank

Pakistan is a lower middle-income country, which is home to a large number of poor, constituting about one-third of its population. The incidence of poverty has remained at around 30 percent of the population during last four decades. The country has been struggling for poverty reduction and has been introducing poverty alleviation programs from time to time. Despite these efforts, poverty persists. The country is facing many challenges including low growth, high inflation and unemployment, sectarian strife, and poor governance.

Pakistan has been facing a high incidence of poverty. Despite its persistent efforts to make a dent on poverty, the country never witnessed a systematic reduction in the same. The country has been spending a significant amount on safety nets and social protection programs. Some programs provide direct cash grants and other forms of indirect support to the poor, while microfinance programs provide microcredit, micro savings and micro insurance to the beneficiaries.